MANESAR CRISIS

Presented By :
Priya Rani Tarun Joshi NARAD Vinay Yadav

Table of Contents
About Maruti Suzuki India Ltd. About Manesar Plant Manesar Violence July 2012
Issues of Violence
Worker`s point of view Management point of view

Impacts
On Maruti Suzuki India Ltd. On Society. On NCR.

How can we resolve???

ABOUT MARUTI SUZUKI INDIA Ltd.

A subsidiary company of Japanese automaker Suzuki Motor Corporation. Type Public Ltd. Predecessor- Maruti Udyog Ltd. Founded -1981

CONTD.
Headquarter- New Delhi CEO & MD- Shinzo Nakanishi Employees- 6,903 (2011) Products- Maruti 800 , Alto , Ritz, A-Star, Swift, Wagon-R, Estillo , Sedans DZire, SX4, in the 'C' segment Maruti Eeco, Multi Purpose vehicle Ertiga and SUV Grand Vitara

ABOUT MANESAR PLANT

Inaugurated in February 2007 and is spread over 600 acres. Total production capacity is 5.5 lac vehicles annually. This Plant produces the A-star, Swift, Swift DZire, SX4 and Ritz. Total permanent employees 653 , 2387 contract basis employees

Manesar violence July 2012

On 18th July, Maruti's Manesar plant was hit by violence. Workers attacked supervisors and started a fire that killed a company official and injured 100 managers, including two Japanese experts. The violent mob also injured 9 cops. The company's General Manager (HR) got both arms and legs broken & killed due to fire.

ISSUES OF VIOLENCE
Workers point of view Demand five-fold increase in basic salary. Monthly conveyance allowance of 10,000 Laundry allowance of 3,000. Gift with every new car launch House for every worker who wants one or cheaper home loans for those who want to build their own houses.

Cont The current 4 paid weeks of vacation be increased to 7 weeks and each worker have 40 days allowance of sick and casual leave - for a total of 75 days supervisor had abused and made discriminatory comments to a low-caste worker & suspended it. Harsh working conditions and extensive hiring of low-paid contract workers which are paid about $126 a month, about half the minimum wage of permanent employees.

Management point of view Unexpected demand of employee union. Formation of Maruti Suzuki Workers Union. HR Management failure. Failure of IR.
EMPLOYEES EMPLOYERS

EMPLOYEE ASSOCIATIONS

INDUSTRIAL RELATIONS

EMPLOYER ASSOCIATION

GOVERNMENT

COURTS & TRIBUNALS

IMPACT ON MARUTI
Loss of about Rs 75 crore per day. Customer switch to another brands. Production losses 65000 unit in three week. Less investment. Employees dissatisfaction.

IMPACT ON SOCIETY
Villagers facing unemployment due to lock out. Local vendors lost their daily income due to lock out. Contract workers loses their jobs. Economic growth of Manesar is become low.

IMPACT ON NCR
Less investment. Loses upcoming projects. Companies show less interest in NCR region.

HOW CAN WE RESOLVE ???

Improve IR. Fulfill The significant demand of workers. Improved grievance handling strategy. Better understanding b/w government & industries. Less political interruption.

QUERIES