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Industrial Disputes A Case of Maruti Manesar
Industrial Disputes A Case of Maruti Manesar
not only hampers smooth running but also deteriorates the future prospects
and outcomes. i.e.: productivity. So the industrial relations and labor laws
provide effective grievance redressal machinery to ensure industrial
harmony and amity.
6. Amelioration of the conditions work and regulation in the industry-IR and
Labor laws provide guidelines which regulate the work environment and the
basics which are to be provided to a workmen / employee from the side of
employer as well as the minimum standards /conditions which are to be
met for every dispute to raised by any of the parties associated in industrial
relations
Pre-Independence Era
Employers and Workmans act 1860.
Trade Disputes Act 1929.
Trade Union Act 1926.
Post Independence
permanent workers.
Workers are not active entities of management
considerations so grudge against management.
249 Disputes in first 5 months of 2010 and 101
disputes in 2012 over the same period.
Political Interventions in Union leading to more
damaging outcomes.
Unhealthy Relationship between workers and
Management.
Involvement of coercive entities to crush labor
The Workforce at Manesar - Workers in the Manesar plant are younger than in the Gurgaon
plant, and their wages a much lower, their contracts more casual. Permanent workers are paid
between 13,000 and 17,000 Rs, trainees get between 8,000 and 10,000 Rs, temporary workers are
paid around 6,500 Rs and apprentices around 3,000 Rs to 4,200 Rs. Permanent workers at Manesar
compared their wages to the wages of permanent workers at nearby Honda, Hero Honda or Maruti
Gurgaon plant and voiced anger about the fact that they earn only half as much. Backed by a
same union MUKU(Maruti Suzuki Kamgar Union).
Company had already prepared legal documents for a possible expulsion of workers from the
premises demanding the separate union.
entrance of Marutis Manesar plant. If the management doesnt accept our demands
today, the workers of other neighbouring plants will go on a days strike. We are calling
for the termination of the 11 workers to be revoked. The workforce says it will only start
production when the 11 are taken back and given assurances they [management] will not
interfere in the union. (Business Standard, 10th of June 2011)
On 10th of June the over-all pressure on the striking workers increased and pushed them
further into the arms of the main unions. The Haryana government has, under the
provisions of the Industrial Depute Act, 1947, referred the matter of ongoing strike in
Maruti Suzuki Udyog Ltd, Manesar, by the workers to the competent labour court and has
also passed the orders prohibiting the continuance of the strike in the industrial unit,
Minister of State for Labour and Employment Shiv Charan Lal Sharma said in a statement.
The strike was officially called illegal.
Two truckloads additional police arrived on the factory premises. Though the Gurgaon
district magistrate said deployment of additional forces inside the 600-acre premises was
just a precautionary measure, sources informed that striking workers could be booted out
of the factory with the use of police force. We have a court order that allows us to evict
these workers from the factory citing protection of the equipment, said RC Bhargava,
chairman, MSIL, adding police were there only as a precautionary measure. Ravinder
Kulharia, a striking worker, said workers feared for their lives. We do not understand as
to why the administration has moved such a large number of police personnel when we
have been on peaceful strike from the beginning,. (Hindustan Times, 10th of June 2011).
Initally Maruti Suzuki management offered to take back 5 of the 11 sacked workers, but
the union refused. But the demand was all the employees to be taken back. Besides, the
company had to give us an assurance in writing of not taking any disciplinary action.
On the 13th of June the company management announced that it would accept a
separate union for the Manesar plant, but under the umbrella of company council, which
would be responsible for wage revisions and other general issues.
on 17th of June, the dispute was settled. The workers were represented by leader of the
proposed new union Maruti Suzuki Employees Union Shiv Kumar and national secretary of
AITUC Sachdev.
The company has now agreed that we would not be asked to sign the paper. Also, the
fact that Maruti took back the 11 workers shows that our demands were met, said Shiv
Kumar. Actually the eleven workers have to undergo an inquiry before they are taken
back.
The plant will remain closed on Friday, the 17th of June, as a rest day for both workers
and management and, instead, will function on Sunday. A puja [religious ceremony] has
been called at 12 pm tomorrow as a symbolic way of starting things afresh, the
administration official said. There was no mention of the second union in the agreement
signed yesterday, simply because the workers at the Manesar plant do not require the
managements permission to form a new union. Gurudas Dasgupta, general secretary,
All India Trade Union Congress (AITUC). (Business Standard, 17th of June 2011)
The national secretary Sachdev concluded: There has been massive loss of production
and the workers are aware of this. Hence they are willing to work overtime and make up
as much as possible for the loss in production. .
Later, The workers delegation was told in no uncertain terms by officials of the labor
department that MS management was insisting on the resignations of Sonu Gujjar
(President) and Vinod Kumar (Secretary) as a precondition to any settlement whatsoever.
Sonu and Vinod complied they knew how tough the situation was for their comrades
most workers badly wanted a settlement. (The mainstream media humored itself by
speaking about a golden handshake with guesstimates of the blood-money paid varying
from INR 2.8 million to 4 million; post 18th July 2012 these quotes went up as high as 15
million). In bargain the management had to relent and agree that it would not create any
hurdles in the registration of MSEU, which it would subsequently recognize. Later on MS
management announced that any worker charge-sheeted for the 2011 disturbances
would not be allowed to participate in the elections to these committees.
2012 also began with the worker masses realizing that whatever the management may
have committed in the October 2011 settlement, their union registration still was not
happening forget union recognition and subsequent collective bargaining over
employment terms. In other words things would be still the same same pay, same
working conditions At times they become very angry, even belligerent. 4th March 2012
was such a day. MS management sensed the mood that day. It did not want to be beaten
up. It blinked and it talked soft. It recognized the union on the spot Maruti Suzuki Workers
Union (MSWU) was the name they got for themselves. Thinking everything to be oncourse, the workers began working on their charter-of-demands. Workers collected
photocopies of the best industrial agreements they could come across. They constituted a
committee to visit the best schools in town to collate information on the expenses
needed. They did everything they could in order to write out, on a piece of paper, a
charter-of-demands that would give them a decent life. They presented this charter-ofdemands to the management and sat politely across the negotiating table.
None of their demands were met instead they were humiliated on the basis of mistakes
they committed on the preparation of charter. On 16th July 2012 MS management
responded to the workers demands by circulating a sheet of paper that informed the
workers what Maruti Suzuki was willing to give, during the next three years, in return for
their work. It was way below expectations and in bad taste as well example: Maruti Suzuki
offered them INR 200 a month for child education . Nothing happened on 17th July. But
next day supervisor Ramkishor Manjhi cursed worker Jiya Lals on his caste and beat him,
Managements unequivocal support for Ramkishor Manjhis act Jiya Lals immediate
suspension, The grudge began A shift did not leave the factory premises when B shift
entered to begin work. A good number of them had iron rods, car door frame-channels
and projectiles tucked beneath their shirts intimidating management bouncers were
always around and these workers had not forgotten the 2005 Haryana Police beat up of
Honda workers inside the court premises. They were prepared, angry and no mood to
take it lying down. few workers Ram Meher, Sandeep Dhillon, Sarabjit Singh and Co. the
men representing the workers inside the negotiating room folded their hands and told
the management that the least it could do was revoke Jiyas suspension in order to lessen
the tension that evening. It is said that Mr. SY Siddiqui (Chief Operating Officer
Administration) contemptuously smiled back he was probably intriguing on the basis of
intelligence that the 11 man delegation would be beaten up if it did not accomplish
anything that evening. The 11 man delegation went and reported to the mass that it
could not achieve anything.
18 July 2012-Violence Started-They first smashed the CC TV cameras that could record
what they were doing. They they went after the bones of the men who had spent years
teaching them efficiency; denying them natures calls in the name of efficiency. Efficient
they were: it was all over within half an hour. Maruti Suzuki reported a burnt main gate
and administration building, ninety-six supervisors and managers hospitalized for
fractured bones and other injuries, one dead. Maruti Suzuki did not report that its
bouncers did not put up a fight, that they fled.
Maruti Replies Back-.On 19th July 2012 Maruti Suzuki issued a statement which has is
quoted. The statement says (http://www.marutisuzuki.com/Maruti-Suzuki-statement-onManesar.aspx accessed 16th August 2012) By any account, this is not an industrial
relations problem in the nature of management-worker differences over issues of wages
or working conditions. Rather, it is an orchestrated act of mob violence at a time when
operations had been normal over the past many months.It would be retrenching more
than 500 existing permanent workers and getting 100 para-military personnel from the
state government to patrol the shop-floors during each shift and it would not be
employing contract workers on the direct production line anymore.
Later in August The Plant Started to function and the head of the SUZUKI Cop JAPAN came
to india and visited MSIL Manesar.
There was a tension between the management and the union from last three months on the
issues of contract, bonus and salary hike.
Besides the demands of the permanent workers, there was a demand to make those
workers as permanent on the priority basis who were working for last 6-8 years.
. On the other hand the owner-management did not want to accept these demands. About six
month ago the owner had secretly given lakhs of rupees to the so called management (in reality
the white collared goons) Yogendra Chaudhary and his colleagues Rajkumar, Omvir,Mahendra
Singh Chaudhary and Narendra Dabas for breaking the union. Since then this so called
management was arbitrarily running the factory.
It was quite common for them to roam inside the factory openly carrying the guns in order to
terrorise the workers.
There was a surge in the incidents of threatening and intimidation to the workers, beating them
and expelling them on the frivolous grounds so that the owner does not have to regularize any
worker and a ground is prepared for not honouring the contract.
All this caused enormous indignation among the workers.
The workers were living in a condition of fear. If anyone dared to complain he was sure to
lose his job.
A worker was always living in a dilemma of his economic needs and fear. He was always
fearful that if he would protest he would have to lose his job and face economic hassles.
On the other hand he was also thinking of salvaging his dignity and self-esteem. This
condition was gradually taking a dangerous turn and on 13th November it took an explosive
form.
What transpired on 13th November? - The Union had earlier declared a strike and the
company management wanted to halt it. On the ill fated day at 2 oclock in the afternoon the HR
Head of the company Mahendra Chaudhary went to the two wheeler clutch wiring department
along with Yogendra Chaudhary. Some altercation ensued with the workers there. After that
Yogendra Chaudhary opened fire and in 4-5 rounds of fire a bullet hit a worker named Brijesh.
Subsequently the angry workers valiantly fought with the officials and in an act of defence by the
workers, the manager lost his life. Many people were injured from both the sides.
Strength of the workers - There are around 300 permanent workers in the Allied Nippon
Company and the same would be the approximate strength of the casual workers. Further around
the same number of workers work on contract. The workers formed their union in 2006 against the
increasing exploitation of the company.
The empire of the company The workers tell that owner of the company has 4-5 other
factories in Gurgaon and other places. There is a big show room in Delhi. The owners sons name
is Rohan Talwar.
The authoritarian behavior of the administration with the workers
(Yogendras relative and the security officer of the company Omvir Singh has lodged an F.I.R. in the
Link Road police station against 377 people and by naming 27 workers this case. Police has
arrested 8 persons in this connection. ) not so imp point
Right from the day of the incident, the SSP Raghuvir Lal has been saying that the clash was
initiated from the workers side. On the other hand the labour department has already
stayed the strike by the union by taking refuge to Industrial Dispute Act. The stand of the
administration is very clear. The entire site-4 has been converted into a police cantonment
and the police teams are conducting raids at different places in the workers bastis.
On the other hand the leadership of CITU which claims to represent the interests of workers
is maintaining a conspicuous silence over this issue.
Some questions which remain unanswered by the administration - Clearly the death of the
manager cannot be justified but the question arises if the pistol is the way how the management
wanted to hold a dialogue with the workers? If a case can be filed against 377 workers then why
not against the management which carried out a fatal attack on the workers.
Secondly if the management at the time of the formation of the union had promised to implement
the demands of the workers and now when they have betrayed the promise and arbitrarily
retrenching the workers, the union did not have any other means than to go on strike which is a
constitutional right of every citizen.