Presented by:

Pallvi
Kamalpreet Kaur
Neelam Nakra
Mamta Sharma
Sapna Jha
Apijeet Kaur
 The case is about Maruti Suzuki India ltd an oldest
automobile company
 Two facility locations are at Gurgaon and Manesar,
south-west of New Delhi.
 The Case is based on the situation of labour unrest
at the Manesar plant occured in June 2011
 The detailed analysis will include the cause of the
unrest, its consequences& the final settlement of 13
day long strike
 Maruti being an oldest player has faced many labour
relations problem right up from sept 2000 till 2012.
 Due to which, it has faced a dipped market share
 Production loss of around 12000 cars and 4.2 billion
rupees
 Delayed bookings and no-advances
 Leading to borrowings for working capital
requirements.
All of the problems have taken place due to 13-day long
strike at Manesar plant of 2000 workers on the
following issues:
 There was a huge difference in the status of permanent
and contractual workers
 Workers’ demand was to recognize a new union named
Maruti Suzuki Employees Union (MSEU)
 Management had forced its workers to join an existing
union at Gurgaon named Maruti Udyog Kamgar Union
which workers said is a Pocket Union of Management.
 The Management asked its workers to sign a “Good
Conduct Bond” which workers refused to do so
 Due to the different views of both parties, workers
went on strike on 4th June,2011
 The strike led to dismissal of 11 employees by the
management
 Main trade unions AITUC, CITU, HMS, INTUC,
UTUC formed a joint-action committee which led to
the number of striking workers to 3000.
 As per the Contract Labour Act 1970, every contract
worker has a right of being given Parity of Pay and
some benefits for similar work which were absent at
Maruti’s place.
 As per the Trade Unions Act, 1926 Management has
no right to restrict workers to form a union
 A statement given by an ex-labour secretary that
management has no right to force its workers to sign
any kind of good conduct bond, it should be
mentioned in its standing orders itself.
 As per the Industrial Disputes Act,1947 there should
be prior notice to be given before going for strike
which was absent and which makes the strike
illegal.
 On June 10th The Haryana Govt. declared it as an
illegal strike but which was still continued
 On June 17th the strike was called of in the labour
court.
 Management reinstated its 11 sacked employees for
a domestic inquiry
 There was no-wage for no-work period of strike
 The registration process for the new union was
started and
 Finally both parties agreed to work with
cooperation.
 Settlement through a Works Committee

 Collective Bargaining

 Voluntary Arbitration
 Maruti must implement all the terms mentioned in
the agreement to form a Grievance Settlement
Authority and a Labour Welfare Committee.
 Management must follow best corporate
Governance practices
 It must learn from the industry to be a model
employer
 Management must ensure a parity among its
employees.

 HR system should be responsible for having sound

relations at shop floor also

 Maruti should eliminate its so called

“Mahapanchayat” system.
 What is the basic reason of strike at MUL?
 What are the difficulties faced by the
labours ?
 What are the results of strike ?
 What could have been done before the
problem started?
 Poor Industrial relations are bad for everyone
 Maruti being an oldest player should have learnt to
maintain its relations
 For sustainable success, one has to go through the
phase of trade-offs
 It is the duty of the management to solve the
problems of its people empathetically.