Date post: | 13-May-2015 |
Category: |
Business |
Upload: | susheel-racherla |
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Maruti Manesar Episode
-Presented by Susheel
Loss-Loss Situation
Causes
Differences in salary pay
Working Conditions
Unions generally limit themselves to acting as a voice of permanent employees
Demand for a new union
Impact on Company
Operations stopped for a month.
Loss estimated to be over Rs. 1,500 crore
Fear of insecurity to the employees and their families
Problem of lack of labor resource
Maruti changed its recruitment policy
GOODWILL….
Impact on Economy
Large labor- unemployed
GDP affected
Loss of country resources
Disturbance- affecting the common man
Problems
• Lack of communication between HR people and labour
• Lack of coordination between labour union and HR department
For Managers….
• They have to Properly Co Ordinate with each other• Proper rules for indiscrimination in salary• They have to control the public pokers• They should try to understand the labour’s problem
Actually the problems lies with personnel Managers & HRD managers
These people take hefty salaries
These personnel managers are like Indian politicians, they want money but nobody else should get it!
Personnel Managers and Damagers
It is perhaps the socialist way of thinking. There is no real development.
Only the union is stronger and there is real work culture. This also should change
Why workers at Maruti's Manesar plant are disgruntled
Impact
They are negative trigger for existing companies and region
across the countries and also for prospective investors and job
seekers
Manesar’s outcome
o Plant was suspended
o Abolish contract basis
o Loss Rs 75 Core per day
Lesson’s learnt
o Policies
oDiscrimination between workers
o Late intervention by the government
Labour LawA minimum time rate of wages
A minimum piece rate
Non-Discrimination of people at Workplace.
Local Hiring
Leave without wages
Working hours, holidays and overtime
Labour Laws tweaked by Maruti
Enforcement of the Labour Laws was not followed strictly.
Labour laws need to be followed but only on humanitarian grounds.
Differences in Salary Pay.
Working Conditions.
Lack of proper negotiations.
Minimum wages.
Contract Labour
Companies hire temporary and contract workers not only because they are cheaper, but because they can be laid off when they are not required
Necessary changes done after the event.
Hiring contract workers through company HR and not through a contractor.
Reopened the plant with 300 workers
Fresh recruitment of permanent workers
Terminate the services of 500 permanent workers. (Involved in Violence)
Employee Labour Relationship should had been maintained in decorum.
Flexibility is the key, not the cheapness.
Treat workers in the factory like humans.
The workers should refrain from taking law into their own hands.
What could had been done in order to avoid the event