MARUTI-SUZUKI

Maruti Suzuki India Limited commonly referred to as Maruti is a subsidiary company of Japanese automaker Suzuki Motor Corporation & was founded in 1981 18.28% of the company is owned by the Indian government and 54.2% by Suzuki of Japan.

Its manufacturing facilities are located at Gurgaon and Manesar south of Delhi.

April 2012

Maruti witnessed 1st signs of Workers unrest & this movement gathered momentum as the demands of the workers were not fulfilled

Workers Demands included:a five-fold increase In basic salary A monthly conveyance allowance of 10,000 A laundry allowance of 3,000 Gift with every new car launch A house for every worker who wants one Cheaper home loans In addition to this four paid weeks of vacation be increased to 7 weeks & 40 days allowance of sick and casual leave

Fall out
Manesar violence July 2012
Maruti's Manesar plant was hit by violence & Workers attacked supervisors and the plant was put on fire. The company's General Manager of Human Resources had both arms and legs broken by his attackers, and was charred to death

Managements view of the problem

Unhappy workers have found

out a new way to disrupt ongoing work at the plant by creating serious defects in quality of the cars, so they would fail the compulsory vehicle inspection (VI) quality test.

Workers view of the problem

If the floor supervisor is rude and even slaps us, he is awarded with a promotion but in case a laborer dares to reply, he is issued a notice on grounds of disciplinary action," said Rajender Kumar, a technician

Managements perspective Unethical demands in terms of salary & working hours Deliberate attempt to reduce output

Workers perspective Differences in salary pay

Working Conditions

New union would bring in politics

Accept & sign the Good Conduct Bond

Demand for a union for Manesar plant

Contract Labor

Lack of discipline

Communication

'Manesar Workers are the Villains': Truth or Prejudice? Is this a really a one-off incident?? What could be the possible reasons of the unrest? Who is to be blamed for the deadly riots?

Possible Reasons For IR Problems

Breakdown of communication.

50% of workers at Maruti were contract labors.

Labors without medical and insurance benefits.

One second late into punching-card entry is a days wage cut

Cockroaches and dead flies found in the food in the hurried lunch-break