Introduction

• Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd), is India's largest passenger car company. • It is engaged in the business of manufacturing, purchase and sale of motor vehicles and spare parts

(automobiles).
• It has 4 plants, three located at Palam (Gurgaon)and one located at Manesar Industrial Town, Gurgaon,

Haryana.

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• The company was incorporated on February 24, 1981 as a government company, with Suzuki as a minor partner,

to make a people's car for middle class in India.
• On October 2, 1982, the company signed a license and joint venture agreement with Suzuki Motor Corporation, Japan. • In the year 1983, the company started their productions and launched Maruti 800.

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• In 1992, Suzuki increased their stake in the company to 50%. • In 1995, the company started their second plant and,in 1999, the third plant with new press, paint and assembly shops became operational.

• During the year 2006-07, the company commenced
operations in the new car plant and the diesel engine facility at Manesar, Haryana.

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Timeline of Disharmony
1st strike: 4th June to 17th June 2011

• Reasons:
 Wage parity  Recognition of a new union • Consequences  2,000 workers stopped work and remained in factory

and Eleven workers officially dismissed
 Strike „postponed‟ the production of 13,200 cars ,sales dropped by 23% compared to last 2 years.
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2nd strike: July 28, 2011 and 33 day lock out • Reasons:
5 workers suspended for "allegedly assaulting a
supervisor" . 100 strike breakers hired to replace workers who

have refused to sign the „good conduct bond‟.
• Consequences Haryana company. 50% production cut.
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government

declares

support

for

the

3rd Strike: 7th Oct- 19th Oct 2011 • Reasons:  Dispute on non-inclusion of casual labourers by the management •Consequences:

Production delay of 51,000 cars which translated to
loss of worth Rs 1500 crore.  Union Leaders resign and dessert striking workers

Sales at India‟s largest car maker fell 17% to 66,667
units in September from 81,060 units a year earlier.

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VIOLENCE AT MANESAR
Where ?– Manesar Car plant(Unit B) Why ? – Objectionable Casteist comments by a supervisor to a worker led to the unrest. When?– 18th July 2012

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D-Day Events
8:40 am- Ram Kumar Majhi‟s (Supervisor) altercation with workers. 9:00 am- Jiya lal (Worker) complains against Casteist comments by supervisor ,physically assaults Majhi

11:00 am- Vice President,HR(C.S.Raju) called in for
consultation on indiscipline situation at the plant. 1:00pm- Jiya Lal suspended for indiscipline, Union reacts 2:00pm to 6:00 pm- Negotiations with workers begin
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3:00pm-Unions ask morning shift laborers to stay back 4:00 pmPolice Informed about situation, Police

promises to send in 60 cops for protection
6:00 pm- Unions leaders unhappy with the negotiations pull out

7:00 pm – Chaos begins after
ruckus of closing the plant down

Union Leader‟s raise

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Consequences
• Workers at the plant attacked senior officials with iron rods, wooden sticks and unfinished car parts. • One person killed and over 85 injured in the violence. • Production has been stopped and company has

announced a “lockout”.
• The lockout is costing the company nearly Rs. 80 crore a day. . Rs 500 Crore in plant damages reported.

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• Mr. Awanish Dev(GM-HR) burnt alive completely by the attacking mob.

• More than 45 Executives hospitalized.
• SIT, headed by Assistant Commissioner of Police Ravinder Tomar and six Inspector ranked officials, will probe the incident.

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Rationale for Disharmony
• Continuing and increasing discontent • Aggressive Trade Unions • Strict provisions implemented to regulate activities of trade unions • Imbalance in Work force( Permanent vs Contract) • Issue of Wage parity

• Management‟s lack of commitment and casual attitude
in redressing worker related issues.
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Current Developments
• All 10 Union Leaders have been arrested

• “Lock out” Continues
• Conspiracy angle‟s being investigated • 97 workers arrested till date • Management in consultations with astrologers for re aligning the plant as per vaastu • Consultations with various HR heads in process for

developing a long standing solution to the problem.

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THANK YOU

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