1. MARUTI SUZUKI
LIMITED
A CASE STUDY ON
INDUSTRIAL
UNREST
By :-
• Bharti Jaswal
• Isha Choudhary
• Chandni Uppal
• Avitej Singh
• Nitish Rattan
• Parminder Singh
• Dipin Pal
• Sunniya Khanna

2. The term industrial unrest is used to describe activities
undertaken by the labor and other working people
when they feel grievances and protest against pay or
conditions of their employment.

3. MEANING OF LABOUR UNREST
MEANING
 LABOUR UNREST  Labour unrest is a term
used by employers or
those generally in the
business, community to
describe organizing and
strike actions undertaken
by labor unions,
especially where labor
disputes become violent

4. CAUSES OF LABOUR UNREST

5. MARUTI UDYOG LTD.
 MARUTI CO. got incorporated in 1981 with private ownership
and was first co. who brought revolution in automobile
industry.
 It has 10 basic models with over 50 variantsi.e 9 out of maruti
being manufactured and 1 from suzuki being imported.
 Over last decades MUL has launched cars—maruti
800,alto,omni ,esteem,wagon r,gypsy,vitara,baleno with maruti
cervo, maruti suzuki eeco,maruti ritz ,sx4 being newly
launched.
 Its functions through 303 sale outlets in 189 indian cities.
 It is headed by ---Mr.Shinzo Nakanishi who is chairman and
director.

6. Collaboration
of Maruti with Suzuki
 Suzuki collaborated with maruti in december 1983 and actual
production also started in 1983.
 Maruti udyog ltd. Was renamed as maruti suzuki india limited
on 17 september,2007.
 It became first indian car company by manufacturing millions
of cars in march 1994.
 It works on japanese technology but according toindian
conditions and indian car users.
 It has total market share of 44.9% in indian passenger cars
industry by march 2011.
 Now co. had recently launched first life‘s utility vehicle maruti
suzuki ERTIGA.

7.  The Manesar Manufacturing Plant was inaugurated
in February 2007 and is spread over 600 acres
(2.4 km2). Initially it had a production capacity of
100,000 vehicles annually but this was increased to
300,000 vehicles annually in October 2008. The
production capacity was further increased by
250,000 vehicles taking total production capacity to
550,000 vehicles annually. The Manesar Plant
produces the A-star, Swift, Swift DZire and SX4.

8. MEANING OF GOOD CONDUCT
BOND
It is written and signed promise to
conduct good behaviour by
signatureholder to organisation for
which bond has been signed.
It includes basic rules or principles
for determining what constitutes
‗good‘ or ‗‘right‘in behaviour
It consist of set of predetermined
moral judgments
It is descipline of dealing with what
is good and bad with moral duty
and obligation

9. GOOD CONDUCT BOND
BY MARUTI SUZUKI COMPANY
• REASONS……. WHY CMPANY
DEMANDED ABOND SIGNING WITH
LABOURERS.
• Government reported that company‘s management
entered into bond aggreement with labour unions
demanding that labour entered into unfair labour practises
calling for arbitrary act of bond agrreement given in
industrial disputes act 1947.
• The company demanded it as strike by labourers resulted
in defective production,wide sread indiscipline by labour.

10. REASONS
• The heart of problem at manesar plant is indiscipline
displayed by a section of workers over past 2
months.----- Refusal to follow instructions ,resorting
to go-slow,deliberately causing quality problems in
cars.
• Car maker faced a series of occasions where workers
struck work causingproduction loss of over rs.2,000
crores between mid july and mid- october this year.

11. DEMAND OF MANAGEMENT FROM
WORKERS IN BOND AGGREEMENT
• In December1,2011haryana govt. Had reported that it has
authorised bond being sent by maruti co. For its labourers
to promise that they will not go on slow down, strike or
other indisplinary actions and they will effectively
produce goods without any defect and without stopping
production in future.
• Company also demands labourers not to form union
seperately for manesar plant as it is backed by political
parties which adversely affects profits of company.

12. LABOURERS ISSUE ON BOND
BEING UNFAIR
• IN SEPTEMBER ,2011 WHEN BOND WAS
PRESESNTED BY MANAGEMENT, LABOURERS
CRITICISED MANAGEMENT CONDITIONS .

13. REASONS FOR CRITICIZING
• Labour force criticised management for having their
own union in manesar plant as it feels that…….
• The old union i.e. Of gurgaon is totally in hands of
management and what they do is just for their own
employs in gurgaon plant.
• Moreover,they feel that their hr department doesn‘t
listen to their complaints.Infact they force them only
on completing increased targets by management.
• Furthermore,many contractual employees had been
removed and permanent employees suspended
demanding their own union for non exploitation of
manesar employees by management

14. Continued….
• Union is also demanded as the working conditions
provided to them are not adequate as employees get
only 30 minutes break for lunch and 7 minute break
for tea .
• In addition to it, workers are also not given
incentives, pay, medical and other benefits equally
nessecitating making of separate union by workers.

15. BOND ACCEPTENCE BY
WORKERS AND MANGEMENT
• First agreement was signed by 600workers in 2001 out of
4800 workers forcefully.
• An agreement was agreed by management and workers
on oct1,2011

16. • The agreement between employees and management was
done in such a way that….
Management would take back terminated employees if the
working employees would meet the target and work
smoothly
• Moreover,management introduced a change in its
condition that now employees will be first enquired and
then fired out if he is seen inefficient.Earlier it was stated
that employees will be fired out without being enquired.
• After the bond signing,18 trainees were taken back which
were dismissed, 15 permanent workers were suspended
only which were terminated.

17. A STUDY OF MAJOR UNRESTS IN
MARUTI SUZUKI .. :-

18. INDUSTRIAL UNREST IN
YEAR 2000..
 ON 12 OCT,2000 WORKERS FIRST WENT ON
STRIKE WITH 4700 EMPLOYEES RESISTED TO
WORK .
 STRIKE TOOK ITS FORM FROM AGITATION BY
WORKERS DONE IN SEPETMEBER2000.
 IT RESULTED IN PRODUCTION TO FELL DOWN BY
40% IN NEXT 3 MONTHS.

19. REASONS
 INCENTIVE SCHEME---- WORKERS WERE NOT
SATISFIED WITHINCENTIVE SCHEME DECIDED BY
MANAGEMENT BASED ON SALES OF CARS AND SPARE
PARTS WHICH WORKERS AGIATED ON ISSUE THAT THIS
SCHEME WAS NOT THAT WORKERS WOULD EASILY
DETERMINE.
 DISSMALS---MANAGEMENT SUSPENDED 10 WORKERS
FOR SHOUTING SLOGANS,LATER DISSMISSED 4
WORKERSRESULTING IN REGULAR DISSMALS.
 COMPETITION---DUE TO INCREASED COMPETITION
, MANAGEMENT INCREASED PRODUCTION TARGET FROM
400 CARS IN 1982 TILL 4 LAKHS IN 1999-2000.

20.  Introduction of SCANLON
type incentive scheme. The union demanded reinstatement
of the original incentive scheme which had been in place
prior to 1995, according to which 65% of all savings in
labour-cost above the norm set (at 41.5 cars per worker per
year) was to be distributed to workers as an incentive
bonus.
 Death of three persons in October 2000.
 Mandatory requirement of signing a ‘good conduct
undertaking’

21. STRIKE OFF!!!!!
 ULTIMATELY WHEN WORKERS WERE TO ENTER
FACTORY AT GURGAON, POLICE FORCES GREETED
THEM AT GATE WITH THE RESULT FORCING
WORKERS TO SIGN AGREEMENT RESULTING IN 600
WORKERS SIGNED OUT OF 4800 WORKERS DUE TO
FEAR OF BEING DISSMISSED.
 MANAGEMENT AND WORKERS COMPROMISED ON
TERMS THAT MANAGEMENT WOULD REINSTATE
DISMISSED WORKERS AND WORKERS WOULD AGREE
TO INCENTIVES SCHEME IMPLEMENTED BY
MANAGEMENT.

22. CONSEQUENCES OF STRIKE OF
2000
 As a result of compromise ,the management started
harrassing workers so by not letting them get free time
for rest etc so that employees may go in for voluntary
retirement scheme .It helped management in a way that
they were able to opt for contractual employment of
workers which helped to decrease the operational cost and
increase profits by 50%.
 The kamgar union was formed which was puppet in hands
of management in gurgaon resulting in no favourism to
workers by union.

23. CASE STUDY (2011)
 INDUSTRIAL UNREST IN 2011 AT MANESAR
PLANT IN HARYANA.

24. EXPLANATION OF STRIKE IN
2011
 FIRST OCCUPATION---
 4TH JUNE TO 17TH JUNE 2011-----

25. First Occupation
 Maruti - Suzuki workers launched sit-in strike from June 4
demanding trade union rights.
 Knowing workers‘ initiative for a new union, the management
forced and threatened workers to sign on a blank sheet
allegedly to state that they will not join the new union.
 3,000 workers started a sit-in strike from June 4, 2011 in the
Manesar Plant, demanding recognition of newly formed Maruti
Suzuki Employees Union (MSEU).
 To put pressure on workers, on June 6 the management
dismissed 11 workers including MSEU office bearers for
allegedly inciting workers to go on strike.

26.  Maruti – Suzuki has an in-house union, Maruti Udyog Kamgar
Union (MUKU) at its Gurgaon Plant for which elections have
not been conducted for a long time
 . Workers at the Manesar - Industrial Model Township (IMT)
plant feel that the MUKU is dominated by the management and
is not taking up workers‘ issues such as wages, intensification
of work and regularisation of trainees and contract
workers.
 However, the management has been maintaining that it will not
allow the Manesar plant to have an independent union or a
union affiliated with a political party, and they can become part
of the existing MUKU union.

27.  The 13 day long sit-in strike by workers at the Manesar was
successfully concluded on June 17. An agreement was reached
under section 12(3) of Industrial Dispute Act in the presence of
Hon‘ble Labour Minister of Haryana.
 Broadly the terms of agreements are as follows:
1) The 11 dismissed workers are reinstated pending domestic
inquiry,
2) No work no pay for the period of strike,
3) The application filed by the workers for registration of a
new union on June 3, 2011 will be duly processed by the labour
department of Haryana, and
4) Both the parties agreed to cooperate with each other.

28. THE UNDERGROUND
 From 17th to 28 august dispute
continued.
 But by the end of june authorities
refused the application for union
registration.
 Workers refused to take part in
voting process of kamgar union
of gurgaon‘s elections.
 Company fenced grassy and
open areas which usually became
place for occupation by workers
for undertaking strike.

29. THE LOCKOUT
 On 28th july onwards---Police took 4 workers to management
for creating violence.In protest workers of a –shift laid their
tools.Management refused b-shift workers buses to enter plant.
 Then management agreed to let b-shift enter.A-shift workers
refused to go out of plant.
 At beginning of august– contractual workers complainted for
work load being excess.
 The line manager abused one of worker .At end he had to
applogise in front of large crowd of workers.

30. Second Occupation
 On August 23, Maruti Suzuki suspends 2 workers at Manesar
plant (suspended two workers at Manesar plant for indiscipline
on the shop floor).
 On August 30, Company management forced a
―good conduct undertaking‖ on workers to check constant
labour problems and ensure orderly production, around 20-25
of 950 workers agreed to sign the undertaking.
 On August 31, Maruti Suzuki refused to hold any negotiations.
Also, suspended 16 more workers and terminated 12 trainees
for creating indiscipline.
 On September 2, Workers from adjoining plants like Hero
Honda, Hero Motocorp, Suzuki Motorbike plant extended
support .

31.  On September 7, "Lathi khayenge, jail jayenge... Par union
banane ka haq nahi chhodenge.... said MP Gurudas Dasgupta to
extend support to the protesting workers at the Manesar plan.
 On September 10, Suzuki chief Osamu Suzuki said
that, ‗Maruti Suzuki won‘t tolerate indiscipline‘. Company
sought a ―good conduct bond‖ from workers to control
indiscipline in production and quality .
 On September 13, Maruti Suzuki India is understood to be
planning to recruit 100 new permanent employees to replace
the existing ones. Also, the company has decided to give the
current workers time till September 19 to sign the "good
conduct bond" before replacing them with new workers.

32.  On September 15, The labour unrest at Maruti Suzuki's
Manesar plant spread to Suzuki Casting Division, Suzuki
Motorcycles in Gurgaon , threatening to further escalate
tensions in the area.
 On September 16, Maruti freezes operations over labour
trouble at both Manesar and Gurgaon plant.
 On September 22, “We should not make losses, but
profitability will be reduced,‖ Maruti chairman RC Bhargava
said.
 On September 30, Management decided to only suspend 44
terminated workers and workers agreed to sign the Good
Conduct Bond. In 33-days duration of strike, company‘s
production reduced by 22000 cars

33.  On October 3rd, Management accepted entry of permanent
workers, but not of temporary workers in premises.
 On October 7th, Some temporary workers got their final
dues, but others went on strike as they didn‘t received it.
 On October 8th, The workers inside factory along with Suzuki
Castings, Motorcycles workers went on sit down strike, those
who were hired during lockouts also got involved in it.
 On October 14, About 1,500 police personnel entering the
factory and asking the striking workers to vacate the premises
as per the Punjab and Haryana high court order. The high
court of the state of Haryana, home to Manesar, declared the
current strike illegal on Thursday.

34.  On October 21, A long strike at Maruti Suzuki India's Manesar
plant has been called off this morning following a tripartite
agreement between the management, workers and the Haryana
Government.
Tripartite Agreement involves :
64 permanent workers were taken back.
30 workers remained suspended.
Good Conduct Bond was signed.
―No Work No Pay‖ rule was agreed upon.

35.  On November 14, Trade union leader Sonu Gujjar
quits with Rs 1crore payout. 30 suspended workers at
Maruti's Manesar plant, including their two leaders
Sonu Gujjar and Shiv Kumar, had quit the
company, taking home amounts ranging between Rs
16 lakh and Rs 40 lakh

36. STRIKE OFF
 AT LAST ON 21ST OCT. THE STRIKE TOOK OFF BY
WORKERS.
 ON 22ND THE PRODUCTION RESUMED IN
MANESAR PLANT.

37. The Beneficiaries
 Toyota – Etios
 Honda - Jazz
 Mahindera – XUV500
 Hyundai - Verna

39.  Maruti Suzuki reported a sales decrease by 12.74% in the
month of August 2011 that stood at 91442 units compared
to 104791 units in the same month last year. The
company has posted that this fall was due to the ongoing
labour unrest at its Manesar plant that has affected
production.
 ―The disruption in production at company‘s Manesar
plant in end August adversely impacted the sales numbers
during the month,‖ reported as by sources.

40.  Sales of the company‘s mini-segment cars, including the
M800, A-Star, Alto and WagonR, fell by 18.34 percent to
37,496 units from 45,917 units in August, 2010, it said.
 The compact segment (comprising Estilo, Swift and Ritz)
witnessed a 26.93 percent dip in sales to 16,043 units from
21,955 units in the same month a year ago.
 Sales of DZiRE decreased by 6.82 percent to 7,856 units
from 8,431 units in the corresponding period a year
ago, the company said.
 MSI‘s mid-sized sedan SX4‘s sales slipped by 7.57 percent
to 1,893 units from 2,048 units in the year-ago month.

41.  Maruti shares have fallen more than 27 percent in 2011
due to the unrest.
 Striking workers demanding the re-employment of sacked
colleagues, who took control of Maruti's 1,000-cars a day
plant in Manesar a week ago, stopped production on
Friday.
 A supporting strike at a neighbouring Suzuki power train
plant halted parts supplies to Maruti's second plant in a
nearby town, shutting it down too. That plant usually
makes 2,800 cars a day.


42. LESSONS FROM MARUTI
LABOUR STRIKE
IT IS SAID THAT BETTER WORKER MANAGEMENT
RELATION HELP TO CUT COST AND INCREASE SALES
AND FACE COMPETITION . AS MARUTI FACED ABOUT
1500 CRORES OF COST DUE TO LABOUR STRIKE.

43.  There need to be efficient communication and feedback among workers and
management so that there will be less chaos and confusion
There should be involvement of workers in atleast the policies and procedures
to accomplish targets .In this way employees will feel motivated.
As it involves large sum of money in getting
 The production done through workers in form of training them , cost of raw
material in usage etc. So considering this the management should employ
workers and semi skilled and skilled workers as per requirements of the job.
 The management should treat their employees with respect as employees
seek pride in what they do and where they work.
 5 strategies to be employed for retaining employees……
 Environment
 Support
 Compensation
 Growth
 Relationship