Upload
prerna-gupta
View
241
Download
0
Embed Size (px)
Citation preview
7/28/2019 MANESAR REPORT
1/44
7/28/2019 MANESAR REPORT
2/44
7/28/2019 MANESAR REPORT
3/44
It was formed in 1983. Indias largest passenger car company, accounting for
over 45% of the domestic car market.
First company in India to mass-produce and sell
more than a million cars. Annually exports more than 50,000 car.
Manufacturing facilities are located at two facilitiesGurgaon and Manesar
It offers 14 brands and over 150 variants rangingfrom peoples car Maruti 800 to the stylish hatchbackRitz.
7/28/2019 MANESAR REPORT
4/44
Avinish kumar Dev, General Manager-HR of Maruti
Manesar plant burnt to death by workers while
setting ablaze along with him on 18th July.
MSIL commented that the riots were not due to thefriction between the white collared and blue collared
workers over working conditions and wages demands
nor of any "exploitation orarbitrariness rather it was
a simple disciplinary matter.
7/28/2019 MANESAR REPORT
5/44
A shop floor executive when expressed his
displeasure on work attitude of worker and advised
him to be concentrated, that worker slapped the
executive and assaulted openly on the floor. So , Worker was suspended pending disciplinary
proceedings which is minimal action in any industry
in such a situation.
Union made it a point of prestige. Negotiations went on to resolve the matter.
7/28/2019 MANESAR REPORT
6/44
Management even assured that worker will be
taken back shortly but union leaders were
adamant to revoke his suspension immediately.
This inability sparked the violence. Police has arrested a number of workers of the
Manesar plant under the charges of murder
and attempted murder.
7/28/2019 MANESAR REPORT
7/44
The violence at Maruti Suzuki Manesar plant was not
a result of a one day agitation, it has its roots far back
from 2000 only.
The Indian labour it hired accepted Japanese workculture 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 FrontGovernment and Suzuki started.
7/28/2019 MANESAR REPORT
8/44
Labour unrest started under management of Indian
central government.
In 2000, employees of Maruti Udyog Ltd (MUL)
started an indefinite hunger strike, demandingmajor revisions to their wages, incentives and
pensions at Gurgaon plant as they felt that the
company's current incentives package benefitted the
top management and senior officials.
7/28/2019 MANESAR REPORT
9/44
Employees used slowdown in October 2000, to press
a revision to their incentive-linked pay.
They started a tool down strike from 3rd October for 2
hours in each shift. The tool-down strike led toproduction being shut down for a total of six hours on
each day.
Consequent to the management's demands,
production at MUL plant in Gurgaon reduced to 200units per day, instead of the usual average of 1,500vehicles.
7/28/2019 MANESAR REPORT
10/44
Consequently, management suspended 12 employees
and also mandated all employees to sign a good
conduct undertaking before entering the factory
premises.
The employees' unions agreed to withdraw theiragitation if their three main demands were met.
Those included:
I. The withdrawal of the good conduct undertaking
II. Reinstatement of 83 suspended workers
III. payment of wages for the period of strike
7/28/2019 MANESAR REPORT
11/44
That union was eventually broken by Maruti and
replaced by another which also represented staff at
Manesar. It was the Maruti Udyog Kamgar Union
(MUKU).
Over the next year, around 1,000 workers were
offered a choice of voluntary retirement ortermination.
In 2001, there was another strike for ,against theprivatisation of MUL. The government wanted todisinvest its shares from MUL.
7/28/2019 MANESAR REPORT
12/44
When the government wanted to sell its shares it held
in Maruti in 2001, workers went on strike because
they feared that their working conditions will become
worse.
After this , on June 4,2011 workers at the plant had
gone on a 13-day-long strike demanding the
recognition of a new union, the Maruti Suzuki
Employees Union (MSEU) because they felt that thepresent union was dominated by Gurgaon plant
workers .
7/28/2019 MANESAR REPORT
13/44
But they were denied the right to form a separate
union and hence the workers of MSIL went on strike.
The workers said the company responded by
suspending 11 workers and sending bouncers to force
them to sign blank pieces of paper.
7/28/2019 MANESAR REPORT
14/44
Meanwhile, the file to register MSEU in the labouroffice was cancelled .
Reasons:
A. The employees resorted to an illegal strike;
B. Among those whod signed for a new union, manystill retained MUKU membership;
C. some signatures didnt match with the registeredones.
(However the revolting workers say theyd allresigned from the old union )
7/28/2019 MANESAR REPORT
15/44
On 28 August, they went on strike again. Result of which
Maruti Suzuki suspended 21 workers on charges ofsabotagingproduction and deliberately causing quality
problems.
Having already gone without a salary for the month, the
workers agreed to sign the agreement which included-
A. Lack of proper personal appearance, sanitation and
cleanliness including proper grooming
B. Conduct in private life prejudicial to the reputation of
the company.
C. Habitual neglect of cleanliness as major misconducts
7/28/2019 MANESAR REPORT
16/44
The second truce agreement was signed on 30September.
On 7thOctober, the workers had been on the third
round of strike. They alleged that contract workers and trainees were
refused work when they reported for duty after the
end of one-month agitation.
7/28/2019 MANESAR REPORT
17/44
The workers demanded that the casual workers betaken back, as regular workers had resumed their
duties. They also demanded the reinstatement of 44
regular employees still under suspension.
The company obtained an order from the High Court
not allowing the workers to strike inside the factorypremises.
7/28/2019 MANESAR REPORT
18/44
With no water and food, the workers then decided tocome out and continue with their strike
Finally, the third agreement was signed on 21st
October. Under the agreement, the companypromised to reinstate 64 out of the 94 suspended
workers. The remaining 30 workers remained
suspended till further enquiry.
7/28/2019 MANESAR REPORT
19/44
A Grievance Redressal Committee and a LabourWelfare Committee was to be set up with
representatives from both the management and the
workers.
The workers were not paid wages or salary for the
period of the strike. But the company has agreed to
take care of the request for transport facilities.
The three agreements signed last year didnt mentionthe workers demand for a union even once.
7/28/2019 MANESAR REPORT
20/44
Initial reports claimed wage dispute and the incidentto be caste-related.
According to the Maruti Suzuki Workers Union a
supervisor had abused and made discriminatorycomments to a low-caste worker.
However , these claims were denied by the companyand the police.
7/28/2019 MANESAR REPORT
21/44
Revenge for Junes strike.
Cockroaches and dead flies found in the food in the
hurried lunch- break that workers earn in the canteen
km from the working station.. The tea was without tea leaves or sugar in the 7
minute break.
The company doctor gave heavy doses of instant
medicines even on minor complaint so that disruptionof work could be prevented.
7/28/2019 MANESAR REPORT
22/44
The workers claimed harsh working conditions andextensive hiring of low-paid contract workers whichare paid about $126 a month, about half the minimumwage of permanent employees.
The percentage of contract labour hired was about40% and same work was been taken from them aswas being done by permanent workers.
If a worker is few minutes late, then his half daysalary is cut. If a worker takes one day leave, he
looses about 1,500 Rs to 2,000 Rs as salary cut invarious forms of incentives and allowances. If aworker takes two day leave, he almost looses all theincentives.
7/28/2019 MANESAR REPORT
23/44
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 dayswage 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 anyobjections against management
7/28/2019 MANESAR REPORT
24/44
Workers demand to establish an independent unionMaruti Suzuki Employees Union (MSEU)in the company.
Since April 2012, the Manesar union had demanded afive-fold increase in basic salary
Monthly conveyance allowance of 10,000
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 4 paidweeks of vacation be increased to 7 week plus eachworker have 40 days allowance of sick and casual leave -for a total of 75 day.
7/28/2019 MANESAR REPORT
25/44
Unhappy workers have found out a new way todisrupt ongoing work at the plant by creating serious
defects in quality of the cars, so they would fail the
compulsory vehicle inspection quality test.
Source:http://www.ndtv.com/
7/28/2019 MANESAR REPORT
26/44
Workers indulge in deliberate attempts to reduceoutput and are compromising customer interests.
It was there 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 and
causing quality problems in the cars produced
7/28/2019 MANESAR REPORT
27/44
The root cause of the whole incident is the underlyingaggression and the anger of the workers.
Lack of control and discipline at the Manesar plant
Absence of a proper protocol and employee
satisfaction. There are around 3,500 to 4,000 workers employed in
the factory, but their status differs significantly
Permanent workers at Manesar compared their wages
to the wages of permanent workers at nearby Honda,
Hero Honda or Maruti Gurgaon plant and voiced
anger about the fact that they earn only half as much.
7/28/2019 MANESAR REPORT
28/44
According to Para 9C(1) of Industrial Disputes Act,1947, every industrial establishment employingtwenty or more workmen shall have one or moreGrievance Redressal Committee for the resolution of
disputes arising out of individual grievances. The company has only one recognized union
Maruti Udyog Kamgar Union which is dominated byworkers at the Gurgaon plant.
The production capacity of Maruti has gone up from10 lakh units in 2009-10 to 12.7 lakh units in 2010-11, but there salary has not gone up at all.
7/28/2019 MANESAR REPORT
29/44
Overtime is a compulsion whenever the companyneeds it and the privilege of paid leave is a fantasy
Bouncers were there in company against the workers
Till today, the promised grievance redressalcommittee and labour welfare committee are yet to be
set up.
There was a huge communication gap between the
first level of supervision and the top management. They lacked maturity of a good union leader which is
expected out of union leaders of any big company.
7/28/2019 MANESAR REPORT
30/44
Fact is that in this country there are only 10% workersin the organized sector who have a union. 90% are not
unionized at all.
With the service sector, trade unions had taken a back
seat. But in the last few years the manufacturing sector
has again starting seeing light of day, and the growth in
the automobile sector is the most visible, which is why
we are seeing many more such incidents.
7/28/2019 MANESAR REPORT
31/44
External leadership i.e, the senior people at tradeunions which are at national level, they were doing
their bit in terms of mentoring the younger leaders.
They must train them on their rights, duties and
responsibilities.
There has been a breakdown in the process of how to
handle grievances and employee engagement.
Supervisors should be the first ones to know the
grievances of the workers even before a union does .
7/28/2019 MANESAR REPORT
32/44
Suspension of 10 workers Dismissal of five
Discontinued the services of six trainees.
Also suspended four workers for "instigatingindiscipline" a week before
Another four suspended in late July for manhandling
supervisors.
Charges of sabotage and causing quality problems inthe cars produced.
7/28/2019 MANESAR REPORT
33/44
According to Chairman R.C. BhargavaManesar labour problem is essentially a
political issue and not a problem which
involves any significant demand from theworkers.
7/28/2019 MANESAR REPORT
34/44
Certain practices which increase this Gap betweenWorker and Management needs to be abolished.
Like :-
a) Separate sitting place for Management & Workersi.e. staff should have office space within the
production area .
b) Proper connect between staff and workers,
involvement of families of workers should be heldoccasionally in get togethers.
7/28/2019 MANESAR REPORT
35/44
Separate shift timings for staff and workers ( Thereshould be no G Shift at factory premises)
Separate Increments, Bonus schemes and declaration
of these Separately etc Role of supervisor should be limited to only
production related Instructions to be given to workers
and all behavioural and discipline related issues
should be dealt by HR / IR Team Technology oriented operations reducing demand of
man power
7/28/2019 MANESAR REPORT
36/44
Establishment of a new trade union for ManesarPlant and only one trade union should be formed.
Trade union should 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 should be appointed by
consent of both management and trade unionotherwise the labour will be pro-management.
7/28/2019 MANESAR REPORT
37/44
Code of Conduct- Falling standards ofmanufacturing.
Basic sanitary enhancements demanded by theworkforce
Improved hygienic conditions at workplace reducesemployees dissatisfaction.
Managements have to learn how to handle thecontract labourers.
Companies should conduct better background checkfor all staffs & even contract labourers.
7/28/2019 MANESAR REPORT
38/44
The Industrial Disputes Act, Section 5 B does not allowany company to either close or undergo anyretrenchment.
In 2001, the finance minister in his budget speech
mentioned that they are going to change this clause. Hesaid that the cut off from 100 persons will be increased to
1, 000 persons and retrenchment allowance which is
about 15 days for every year of service would be
increased to 45 days. This is something where a tripartitediscussion can take place. That flexibility to retrench andadd manpower should be there.
7/28/2019 MANESAR REPORT
39/44
There is a need to change the focus from job protectionof a few to enhancement of jobs for many.
Good practices on employee engagement and
communication is top priority. This should cover
welfare, grievances, product line issues...everything.
Training for supervisors and union leaders.
we need a pro active labour department who do take
their role as going and inspecting companies andauditing labour unions and the antecedents of theirleaders very seriously.
7/28/2019 MANESAR REPORT
40/44
Reforms in labour laws; Factories Act (1948), contractlabour act (1947), trade union act (1926), Industrial
Disputes Act (1947)...each of these acts needmodifications.
This doesnt means that changing the acts alone will
change the culture. Education and training should
happen and Acts are there to aid it.
7/28/2019 MANESAR REPORT
41/44
The govt should work towards forming a separatelegislation regarding whether they can form trade union
or not.
Bipartite bodies should be encouraged.
Rights & duties of contract labourers should be clearly
defined .
Contract labourers should also get some privileges.
Advisory board of Haryana should be formed
7/28/2019 MANESAR REPORT
42/44
The percentage of contract labour should beregulated.
The minimum wages need to be fixed.3.
Proper working conditions should be supervised. Fixing of basic wages
7/28/2019 MANESAR REPORT
43/44
Marutis stocks fell about 9 percent Due to the strike, waiting periods for diesel variants
of three models -- Swift, Dzire andSX4 haveincreased further by up to one month and this has an
impact on its sales during this month due to theproduction loss.
The loss is not just to Maruti but also to the industryas spill over effect of this unrest.
Tarnished image of India for new FDIs. Investors may not like to invest in Haryana.
7/28/2019 MANESAR REPORT
44/44
THANK YOU!!