The Manesar Violence – The Background

• Manesar 2007 - 1,152 cars a day on two shifts of eight hours each
• 2010 Slowdown recovery – Sudden jump in bookings
• Strategy – Inc. contract workers, reduce cost & improve production
• Replacement of permanent workers by non-permanent workers
through voluntary retirement schemes
• Outcome - Ambitious demands of permanent workers, economic
disparity
• 2011 Workers Strike – June to October, 3 strike in 5 months
• Revenue Losses - 2.5K Cr.
The Incident & what triggered it ?
• 18 July 2012, Maruti's Manesar plant was hit by violence
• Production workers attacked supervisors and started a fire that killed
company's General Manager of Human Resources Avineesh Dev and injured
100 other managers, including two Japanese expatriates also injuring nine
policemen
• On July 18, during the tea break, there were some skirmishes between the
supervisor Ramkishore Majhi and a worker Jiyalal. The supervisor was trying
to engage a few workers.
• While some reports claim the brawl took place when JiyaLal, a shop floor
worker abused Ram Kishore Majhi because the supervisor had made some
casteist remark against him
Outcome of the incident

• Indefinite suspension of Manesar plant

• Losses – 75 Cr. / day
• 21st July, company announced unpaid lockout for its employees
• Shinzo Nakanishi - de-recognise Maruti Suzuki Workers' Union and dismiss
all workers named in connection with the incident
• dismissed 500 accused workers, 148 workers were charged with the
murder of HR Mgr., 117 dismissed, 31 found guilty, 18 convicted for
rioting, 13 sentenced to life imprisonment
• re-opened the plant on 21 August, produce 150 vehicles on the first day,
less than 10% of its capacity
Findings
• Japanese management - more focused on productivity & income
• Overloading - Manesar plant overloaded with work which increased the
pressure
• Pressure from Japanese management - enhance productivity and increase
revenue
• Workers were compelled to do overtime, wherein they were not
comfortable working overtime
• Indian management unable to cope with this work culture
• Labour laws not followed, salary differences, working conditions,
discrimination between workers.