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Presented By:: N Devi Reddy Sushree Rekha Singh Sibashis Shanyal Sarthak Patnaik Gyana Ranjan Swain Sunil Kumar Mahto

1) Maruti Suzuki has a history of labor issues dating back to 2000 when employees went on strike over wage and benefit demands. 2) In 2012, unrest occurred at the Manesar plant due to wage disparities between regular and contract workers, as well as lack of communication between management and workers. 3) An investigation found that Maruti Suzuki violated workers' rights to freedom of association, collective bargaining, and equal pay. The police and labor department were also ineffective in resolving the disputes.

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Piyush Agrawal
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81 views7 pages

Presented By:: N Devi Reddy Sushree Rekha Singh Sibashis Shanyal Sarthak Patnaik Gyana Ranjan Swain Sunil Kumar Mahto

1) Maruti Suzuki has a history of labor issues dating back to 2000 when employees went on strike over wage and benefit demands. 2) In 2012, unrest occurred at the Manesar plant due to wage disparities between regular and contract workers, as well as lack of communication between management and workers. 3) An investigation found that Maruti Suzuki violated workers' rights to freedom of association, collective bargaining, and equal pay. The police and labor department were also ineffective in resolving the disputes.

Uploaded by

Piyush Agrawal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Presented By:

N Devi reddy
Sushree rekha singh
Sibashis shanyal
Sarthak patnaik
Gyana Ranjan swain
Sunil kumar mahto
History of Industrial Relation at
Maruti Suzuki
 Founded in 1983, Maruti Udyog Limited had few problems in its
labour relationships. The locally hired workforce accepted the
Japanese work culture and the modern manufacturing
processes.
 In 2000, a major IR issue began and employees of Maruti
Udyog went on an indefinite strike, demanding major revisions
of their wages, incentives and pensions. Employees resorted to
‘slowdown’.
 The cold war between the union and the management
continued through 2001. The management did not pay heed to
the union demands because of increased competition in the
automotive sector and lower profit margins.
 The central government prevailed and privatized Maruti Udyog
in 2003. Suzuki of Japan became the majority owner of Maruti
Udyog Limited with 51% share with the public holding 12.5%
Possible causes of the 2012
Labour unrest at The Manesar
Plant
 Wage disparities between the regular and contracted workers.
Uncertainty in the minds of the contracted workers regarding
their future as employees of MarutiSuzuki.
 From April 2012, the Manesar plant workers’ union demanded a
fivefold increase in salary, a monthly conveyance allowance of
10,000.
 Lack of trust between the HR staff and the workers.
 Lack of connectivity and active communication between the
management and workers.
 According to the MarutiSuzuki Workers Union, a supervisor had
abused and made deriding comments on a low-caste worker.
Lack of intelligence and information.
 Workers, both permanent and contracted feel that they were
not being given their due share of the huge profits
MarutiUdyogwas making with the highest market share in the
car industry.
Based on these key findings the
ICLR notes that
1) the management of Maruti Suzuki has
engaged in significant violations of law with
respect to the right to freedom of association,
the right to collective bargaining and the right
to equal pay for equal work,
2) the Labour Department has been ineffective in
ensuring the rule of law of the State
3) the Police has transgressed its powers
amounting to interference in industrial disputes
and yet failed to act when it should have.
Realities of japanese
management at Manesar
 Japanese work environment is based on a “simultaneous
recruiting of new graduates” and “lifetime-employment” model
used by large companies as well as a reputation of long work-
hours and strong devotion to one’s company.
 Over the last one year of operations at Manesar demonstrate
that essentially the Japanese trick to success is not so different
from the rest: the principle followed is to get more work out of a
worker, while at the same time paying less.
 Out of a workforce of 2,500, 40% are on contracts, casual or
apprentice, but were doing similar work as permanents and
paid very less.
 Once Suzuki gained majority stake, the decision making
portfolios has been gradually taken over by the native Japanese
executives
 Even if the Manesar workers were adjusting to the Japanese
work culture they were proud to be in this culture with the new
methods of working hard and new lifestyle.
Problems Faced by the Company
due to strike
 Demand of the product was getting reduced.
 Expected fall in demand during crucial festive season,
when car sales touched the peak.
 The Manesar plant is the hub for the key Swift model,
which runs a huge backlog in the retail market. Delay in
production affected the delivery of cars resulting in
disappointment among customers.
 Amount of output was getting reduced
 Estimated loss of more than 90 million dollar.
 Market value of the company is affected. Shares fell as
much as 2 percent on the Bombay Stock Exchange.
 The company stopped operations for 10 working days in
June
 The firm lost Rs 400 crore because of the strike.
Conclusion
The industrial dispute defined as any dispute or difference
between employers and employers, or between employers and
workmen, or between workmen.
CAUSES OF DISPUTE
 Differences in salary pay
 Working Conditions
 Unions generally limit themselves to acting as a voice of
permanent employees
 Demand for a new union.
 This dispute made lot of impact in the company such as
Operations stopped for a month, Loss estimated to be over Rs.
1,500 crore, Daily loss of 75 crore, Fear of insecurity to the
employees and their families, Problem of lack of labor resource
etc.
 This huge dispute in Maruti created impact on Indian economy
also like large amount of unemployment, affected the GDP, loss
of country resources.

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