SETTLEMENT OF DISPUTE AT MARUTI SUZUKIS MANESAR PLANT

Presented to:Mr. Saurav Banerjee

Presented by:- Seema Saloni Namita

Industrial Relation

11/23/2012

MARUTIS WORKERS DISPUTE

Industrial Relation

11/23/2012

Marutis workers dispute

Maruti workers at Manesar had been demanding a union

for themselves but the company management asked them to join the union affiliated to the Gurgaon plant. One days wage cut of Rs.1500, two days Rs.2200, three days cut of Rs.7-8000 is implemented, so that almost the total months wage is cut. One second late into punching-card entry is a days wage cut, but they have to give full production for that day too. Forced to fill an undertaking form, which means that in case of any problem, workers cannot raise any objections against management.

Industrial Relation

11/23/2012

Did the Marutis workers dispute solved?

Yes, the Maruti Suzuki workers dispute solved. The Management has taken many steps for solving the dispute of Marutis workers( Manesar Plant): A new wage settlement agreement, offering salary increment of nearly 70%. The average increment will be about Rs. 15,800, spread over three years. The gross salary of an entry level worker goes up to Rs. 37,800 per month.

Industrial Relation

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Cont.
Others benefits include a Rs. 20,000 interest free

personal loan. The health benefit scheme for the parents of the workers. However the annual earnings of the parents should be less than Rs. 60,000 to be entitled under this benefit. Medical scheme for the parents of workers. Training period for technicians reduced form three to two year. 5

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Cont.
The average increment in salary of workers will be

about Rs. 15,800. This compromises a Rs. 14,800 increment in gross salary apart from an additional Rs. 1000 in an ad hoc payment of Rs. 2000 that the company gives to workers every month. 70% of the gross salary increment will be given in the 1st year and 12.5% will be given in 2nd and 3rd years. The gross salary of an entry level worker at Maruti is Rs. 23000 at present and the cash in hand comes out at around Rs. 18000.

Industrial Relation

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Cont.
According to new wage structure the average entry

level salary will increase 37,800 per month. a monthly conveyance allowance of more than Rs. 10,000 a laundry allowance of Rs. 3,000 and a gift with every new car launch. THE WORKERS HAVE ACCEPTED THAT, WE ARE HAPPY WITH THE PROVISIONS AND MORE SO SINCE IT HAPPENED IN A PEACEFUL MANNER.

Industrial Relation

11/23/2012

RIOTS SHUT iPHONE MAKERS UNIT IN CHINA

Industrial Relation

11/23/2012

Critical analysis of Apple/Foxconn

Foxconn Technology Group,the assembler of Apple

iphones, had to stop production for the second time in as many weeks after factory time workers at one of its plants protested against increased pressure. The theme of the Foxconn dispute is the outsourcing. There is a personal dispute between workers in a dormitory that erupted into a mass brawl.
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IR Policy at Foxconn Technology Group

Poor conditions of workers

Mistreatment of workers
There is no harmony relation between employee

and management. Foxconn employees more than 1 million workers in China and has suffered in the past three years from suicides, riots and strikes.

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Responsibility of both parties Apple and Foxconn for dispute settlement

Foxconn needs to improve working conditions and

its handling of workers relations. It may have put more focus on efficiency and discipline, which is not wrong. It may have overlook employees feeling as human beings. It may raise wages. Apple should raised pay and allowed inspections by outside observers.
Industrial Relation 11/23/2012

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References
WWW.GOOGLE.COM

(247wallst.com/2010/03/01/outsourcing-chinaslabor-problem/) (pragmaticoutsourcing.com/.../disadvantages-consproblems-of-outso..) (www.smartchinasourcing.com Import From China Outsourcing)

Letters@hindustantimes.com (riots shut iphone makers unit in china Case study (Maruti offers 70% hike to workers over three years)

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