ns - maruti manesar

8/13/2019 Ns - Maruti Manesar

1/23

P R E S E N T E D B Y

A N I S H S H A R M A

A N I S H Y A N D U R I

M O H I T G A R G

S U N I L S O N I

R O H A N M A N T R A

P O O J A J E T H M A L A N I

1

CRISIS AT MARUTI

SUZUKIS MANESARPLANT : AN HR INSIGHT


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COMPANY OVERVIEW2

India's largest passenger car company, accounting for over 45% of thedomestic car marketFirst company in India to mass-produce and sell more than a millioncars

Annually exports more than 50,000 carsManufacturing facilities are located at two facilities Gurgaon andManesarIt offers 14 brands and over 150 variants ranging from peoples carMaruti 800 to the stylish hatchback Ritz


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Damage Summary

12/26/2013

3


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12/26/2013

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THE PROBLEM

5

Differences insalary pay

Workingcondition

Lack of propernegotiation


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FALL IN DEMAND

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Expected fall in demand during crucial festive season, when car salestouch the peak.The Manesar plant is the hub for the key 'Swift' model, which runs ahuge backlog in the retail market.

The bookings for the new Swift and waiting list of customers are veryhigh. Delay in production affect the delivery of cars resulting indisappointment among customers.


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LOSS IN OUTPUT

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Estimated loss of more than 90 million dollar.On August 24, 1,230 cars were planned to be produced, but only 437 were assembled. Out of which, just 96 cars could pass quality check.Halt in production on the 5th September, around 4000 workers rallied

till the highway to block it.Poor dispatch numbers with respect to meeting targets and qualitycontrol


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CONT .8

With only around 20-25 of 950 workers agreed tosign the Good Conduct undertaking

Production was stalled as the company barricaded various entrances to prohibit entry of those whorefused to sign the 'good conduct bond'.


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PROBLEM : WORKERS VIEW POINT

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If the floor supervisor is rude and even slaps us, he

is awarded with a promotion but in case a labourerdares to reply, he is issued a notice on grounds ofdisciplinary action," said Rajender Kumar, atechnician


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CONT.

10

Cockroaches and dead flies found in the food in the hurried lunch- break that workers earn in the canteen km from the workingstation.

The tea was without tea leaves or sugar in the 7 minute breakThe company doctor give heavy doses of instant medicines evenon 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 ofRs.7-8000 is implemented, so that almost the total month s wageis cut.

One second late into punching-card entry is a day s wage cut, butthey have to give full production for that day too. Forced to fill an undertaking form, which means that in case ofany problem, workers cannot raise any objections againstmanagement.


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MANAGEMENT VIEW OF PROBLEM

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Unhappy workers have found out a new way todisrupt ongoing work at the plant by creating seriousdefects in quality of the cars, so they would fail thecompulsory vehicle inspection quality test.


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CONT.

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Workers indulging in deliberate attempts to reduceoutput and are compromising customer interests

Revenge for the June strike.Refused to sign good conduct form which aims atensuring the production of good quality products.Employees are being charged with sabotage andcausing quality problems in the cars produced.


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CONT.

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"In the last three days, a series of serious quality problems had beenobserved in the vehicles produced. For example, vehicle door was notproperly clamped leading to doors falling during production, wiringharnesses were found cut in produced vehicle, dents were noticed onthe body and critical components were not fitted on to vehicles. Suchdeliberate acts, if not detected during quality checks, would have led toserious implications and directly harmed customers," a senior companyofficial said.


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SITUATION ANALYSIS

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Uninteresting nature of work..

Political nature of unions..

Poor wages.

Occupational instability.

Poor behavioural climate


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ACTION TAKEN AGAINST EMPLOYEES

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Suspension of 10 workersDismissal of fiveDiscontinued the services of six trainees.

Also suspended four workers for "instigatingindiscipline" a week before Another four suspended in late July for manhandlingsupervisors.Charges of sabotage and causing quality problems in

the cars produced.On 14th August; police force of 500 sent to occupy thefactory to prevent violent activities


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Facts of Case

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June 1) 13-days strike demanding the recognition of the MSEU at the Manesar plant2) Production loss of 12,600 cars, valued at about Rs 630 crore.

July 1) Production stopped for a day at the same plant because of strike by some

workers.

August 1) Reported 12.74 per cent fall in sales for August to 91,442 as compared

to the sale of 1,04,791 units in the same month last year

September 71) Loss suffered is estimated at about 8,550 units, valued at about Rs 425 crore.


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Confirmed by company s spokesperson 19

Production stopped at ManesarThird production halt in three months at Manesar.The company stopped operations for 10 working days in JuneThe firm lost Rs 425 crore because of the strike.


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According to Chairman R.C. Bhargava20

Manesar labour problem is essentially a political issue and not aproblem which involves any significant demand from the workers


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Solution21

Identify reasons of the conflict.1. Establishment of separate union for Manesar Plant2. Code of Conduct- Falling standards of manufacturing.3. Basic sanitary enhancements demanded by the workforce.


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Trade Union Establishment22

Trade union would be established with prior conditions: -1. Members of the trade union to be nominated with consent of both

workers and management.2. The leader of this union would be appointed by the management.


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ns - maruti manesar

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