2. • Maruti Suzuki India Limited, is a subsidiary company of
Japanese automaker Suzuki Motor Corporation.
• Has two manufacturing facilities located in Gurgaon and Manesar
• It has a market share of 44.9% of the Indian passenger car market
as of March 2011.
• 1st October, 2012 Maruti Suzuki India Limited sold a total of
93,988 units in September 2012.
• Key people: Shinzo Nakanishi -CEO & MD
RC Bhargava -Chairman
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COMPANY INTRODUCTION
3. REASON FOR UNREST
• The plant workers wanted to register a new union—the
Maruti Suzuki Employees Union (MSEU)—and had already
applied for registration, something the management was
opposed to.
• More than 90 percent of these are contract workers who work
for 10-12 hours for 4000-5000 per month. The workload and
speed is extremely high and they have to face verbal abuse
and even beatings by the supervisors and security guards.
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4. MANESAR VIOLENCE JULY 2012
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WORKERS DEMANDS:
•A five-fold increase in basic salary,
•a monthly conveyance allowance
of 10,000,
•a laundry allowance of 3,000,
•a gift with every new car launch, and a
house for every worker who wants one or
cheaper home loans for those who want
to build their own houses.
•In addition to this compensation and
normal weekend/holidays, the union
demanded the current four paid weeks of
vacation be increased to 7 weeks.
5. PROBLEM FROM WORKERS VIEW POINT
• “If the floor supervisor is rude and even slaps us, he is awarded with a
promotion but in case a labourer dares to reply, he is issued a notice on
grounds of disciplinary action," said Rajender Kumar, a technicianRevenge
for June's strike.
• Cockroaches and dead flies found in the food in the hurried lunch-break
that workers earn in the canteen ½ km from the working station.
• The tea was without tea leaves or sugar in the 7 minute break
• The company doctor give heavy doses of ‘instant’ medicines even on
minor complaint so that disruption of work could be prevented.
• One day’s wage cut of Rs.1500, two days Rs.2200, three days cut of Rs.7-
8000 is implemented, so that almost the total month’s wage is cut.
• One second late into punching-card entry is a day’s 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.
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6. `
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•Shares of Maruti fell as much
6.1% after the company declared
the lockout. They closed 5.65%
lower at 1,079.90 rupees,
underperforming a 1.6% decline in
the main index.
•In Tokyo, Suzuki shares fell 3.94%
to 1,366 yen in a market down
1.86%.
•Maruti’s net profit fell 29% to
16.35 billion rupees ($295.6
million) in the year ended March
31
• Its vehicle sales fell nearly 11%
to 1.13 million units.
OUTCOME OF THE STRIKE
8. SCOPE FOR FURTHUR STUDIES
• 580 WORKERS SACKED AND 110 are behind
bars who were involved in the violence.
• 15 legal trade unions have been set up for all
the 9 plants.
• The company has made a 49% salary hike.
• 800 robotic workers by 2015
• New plants to be set up in Ahmedabad
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