The Maruti Suzuki Strike Industrial Relation Insights ( A study)

About Maruti Suzuki:

Type: Traded as:

Public BSE: 532500 NSE MARUTI BSE Sensex Constituent Industry Automotive Predecessor(s) Maruti Udyog Limited Founded 1981 Headquarters New Delhi India Key people Shinzo Nakanishi CEO & MD Products Automobiles Revenue 37,522 crore (US $ 6.79 billion) (2010-11) Net Income 2,288 crore (US $ 414.13 million) (2010-11) Employees 6,903 (2011) Parent Suzuki Motor Corporation Website www.marutisuzuki.com

Industrial relations: Since its founding in 1983, Maruti Udyog Limited experienced few problems with its labour force. The Indian labour it hired readily accepted Japanese work culture and the modern manufacturing process. In 1997, there was a change in ownership, and Maruti became predominantly government controlled. Shortly thereafter, conflict between the United Front Government and Suzuki started. Labour unrest started under management of Indian central government. In 2000, a major industrial relations issue began and employees of Maruti went on an indefinite strike, demanding among other things, major revisions to their wages, incentives and pensions. The standoff between the union and the management continued through 2001. The management refused union demands citing increased competition and lower margins. The central government prevailed and privatized Maruti in 2002. Suzuki became the majority owner of Maruti Udyog Limited.

Manesar violence July 2012 On 18 July 2012, Maruti's Manesar plant was hit by violence as workers at one of its auto factories attacked supervisors and started a fire that killed a company official and injured 100 managers, including two Japanese expatriates. The violent mob also injured nine policemen .The company's General Manager of Human Resources had both arms and legs broken by his attackers, unable to leave the building that was set ablaze, and was charred to death. The incident is the worstever for Suzuki since the company began operations in India in 1983.

Insight 1: Contract Labour is just indicative of larger issues

Insight 2: The need to use a mature approach to Industrial Relations

Insight 3: Industrial Relations requires proactive management

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Insight 4: The ability to handle and resolve a conflict is a business requirement

Workers

are not commodities. Trust and confidence between the blue and white collar people. Strike is ethical whereas deliberately creating faults is not acceptable.

Till now, the PR has been reactive and ad-hoc, addressing a few superficial aspects of the crisis not what caused it, and further, what can be done to prevent it. Here are 6 PR tips Maruti Suzuki might want to consider:

1. Identify a credible spokesperson . 2. Diverting Attention: Position the State Governments Inaction on Labour Laws 3. Giving the Media Facts

4. Engage Social Media

5. Rebuild Marutis India-Connect

6. Focus on the Bigger Picture

7.Contract laborers can be entitled with some special benefits . 8.Political parties should not interfere with labor union.

THANK YOU