The Real Story Behind the Industrial Dispute in Maruti Factory That Turned Violent

7/30/2019 The Real Story Behind the Industrial Dispute in Maruti Factory That Turned Violent

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The real story behind the industrial disputein Maruti factory that turned violent

By Rahul Varman21 May 2013

Posted 10-Aug-2012

Vol 3 Issue 32

The Manesar (Haryana) plant of Maruti Suzuki India Ltd, a subsidiary of Suzuki

Corporation of Japan and the largest car maker in the country, has been in the news for

almost a year.

And for all the wrong reasons the ongoing labour trouble which finally culminated in

arson, rioting and the horrifying killing of a senior manager on July 18.

40% of the Maruti Manesar workforce are contract

or casual workers with a take-home of around Rs

6,000, and no paid leave (Infochange News &

Features)

The mainstream media is packed with analysis on the causes of the unrest and advice for

Maruti and other companies, but three important points have not received the attention

they deserve.

1. The realities of Japanese management


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The first is the fabled Japanese management. Not too long ago it was assumed that the

Japanese have all the wisdom in manufacturing and management and if only we could

learn from them we would find the answer to our woes.

Business schools worldwide teach special courses on Japanese management and suchofferings are highly subscribed; books on the subject are bestsellers.

But descriptions over the last one year of operations at Manesar demonstrate that

essentially the Japanese trick to success is not so different from the rest: the principle

followed is to get more work out of a worker, while at the same time paying less.

Accounts of Manesar tell of workers being forced to steal rest breaks, docking of pay for

minor infringements, almost no paid holidays, an army of poorly-paid temps etc. Here is

an account of a typical workday at Maruti Manesar (1):

You catch a bus at 5 am for the factory. Arriving a second late to punch in your card

means a pay cut, but you cant leave the premises once youve entered. At 6.30 am, you

exercise and supervisors give you feedback on your previous output. Start work at 7

sharp. Everyone does his one task assembling, welding, fixing for a minimum of 8

continuous hours. A car rolls off the line every 38 seconds, which means you cant

budge from your position, ever. You get two breathless breaks during the day. At 9 am,

a 7-minute break to drink tea or go to the loo, or both. After a while you might, like

many of your friends here, end up taking your hot tea and kachori to the bathroom

with you. Then a lunchbreak of 30 minutes, in which you walk about a half-kilometre to

the canteen, wait in line with everyone, eat and walk back. Returning even a minutelate from any break, or leaving the assembly line for any reason even for a minute,

means half a days pay cut.

Overtime is a compulsion whenever the company needs it and the privilege of paid leave

is a fantasy -- Rs 1,500 is deducted for one days leave (even when you intimate in

advance) from a maximum possible monthly pay of Rs 16,000 and five days leave for any

contingency reduces it to the base salary of Rs 8,000.

Out of a workforce of 2,500, 40% are on contracts, casual or apprentice (but do similar

work as permanents) and their take-home is around Rs 6,000, with the threat ofcomparable deductions as regular workers looming all the time and no job security.

Another worker states,

The problem is the immense pressure. They are extracting the work of 5,000 from half

that number(2)


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And this is not unique to India. Such reports are corroborated by workers in Japan and

Japanese plants in the US. For instance, a leading Japanese journalist worked for several

months on the famed Toyota line in its prime during the 1970s and kept a diary which he

later published as a book. This is how he concludes,

While management journalism may applaud Toyotas high profit and the kanbanmethod the human costs of Toyota methods suicides, injuries, job fatalities, and

occupational disease increase at a horrifying rate... Workers suffer every day in front

of conveyer belts this is the nightmare that I have lived(3)

2. Union as intermediary between workers and management

The basic reason for the ongoing impasse of the last one year and its culmination in the

grisly violence this July is the demand of the young Manesar workers to have their own

representative union.

They did not want the union of the Gurgaon plant -- the parent plant where Maruti began

its operations in the 1980s -- to represent them as they contended it was compromised

and had failed to represent workers interests.

But the management insisted that the Gurgaon union was the true representative of the

Manesar workers. Common sense tells us that each one of us should have the right to

decide who can represent us, either individually or collectively.

The Constitution of India provides the freedom to form association as a fundamental

right and the Trade Union Act also gives a set of workers the right to form their ownunion.

But the Maruti management (and the Haryana government in collusion with them)

systematically denied this basic right to the workers for the past year, rejecting them and

frustrating them in every possible way threats, coercion, force, enticements, etc.

Not only this: after a protracted process which continued for months, when the standoff

was broken last year, the management in its wisdom decided to buy peace (literally) by

dismissing the whole leadership of the agitation while simultaneously giving them hefty

compensations.

According to media reports two top leaders were paid Rs 40 lakh each while 28 of them

got Rs 16 lakh per person. Maruti Chairman Bhargava called this voluntary retirement

by young workers, most in their 20s, at the time!

What are the consequences of such a myopic outlook? When the crisis occurred on the


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morning of July 18 in the form of an altercation between a worker and a supervisor, there

was no structure in place through which a management-worker dispute could be

addressed management had eliminated the whole set of leadership whom the workers

trusted, there was no representative organisation which could have served as go-between

and this kind of vacuum of leadership, organisation and trust set the stage for the

unforgivable violence by the end of the day.

Though there was a new union registered and recognised in February this year,

management had continued to undercut it in the same manner as before. I am not

getting here into which side is more to be blamed for the events of that particular day

all I am saying is that once the mechanisms for a dialogue were systematically

undermined, the preconditions for such an event were ever-present.

3. The elusive spatial fix

The third aspect is the persistent reports that Maruti is likely to move lock, stock andbarrel to the investment haven of Narendra Modis Gujarat. Most revealing are the

comments in the mainstream digital media: click on any news of the labour trouble this

past one year and the comments section is full of unsolicited advice that Maruti should

move from Haryana to Gujarat.

But the moot point is how come suddenly Manesar or Haryana have become unfriendly

for Maruti? Wasnt the hardworking, docile, and non-unionised labour of Haryana a

big consideration when plants were established in Gurgaon in the 1980s and Manesar

five years ago?

The geographer David Harvey calls this unceasing quest to relocate production to a

favourable place an attempt at spatial fix.

But Beverly Silver (4) in a large study of the world auto industry from its inception to the

1990s demonstrates that along with the movement of the centre of auto production the

location of labour unrest also shifts continuously.

The database reveals how the heart of labour unrest in the auto industry moved from

North America in the 1930s and 40s, to Western Europe in the 1960s and 70s, and to

developing countries in Latin America and East Asia in the 1990s.

Silver concludes, where capital goes, conflict goes. Perhaps the point can be more

dramatically demonstrated through the opinion of Britains Blackburn mission of 1896

on Shanghais labour and the threat that it posed for British textiles (5):

Comparing this Oriental labour and our own, there is on the one hand, cheap, plentiful,


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submissive, capable labour (of Shanghai), plus the best machinery we can give it; on the

other hand, dear, dictating and exacting labour (of GB), plus the same machinery. Can

anyone call these equal conditions? Are they not in favour of Shanghai capitalist?

However by the 1920s Shanghai was in the news for the wrong reasons and workers in

the industrial capital of China called a general strike in 1927 when several lakh workersand students fought together and finally the insurrection had to be quelled brutally by

Chiang Kai-sheks army.

There are no quick fixes for Marutis woes like moving to Gujarat or undermining the

efforts of the workers to form their own unions

Industrial relations [edit]

Since its founding in 1983, Maruti Udyog Limited experienced few problems with its labour force.

TheIndian labourit hired readily accepted Japanese work culture and the modern manufacturing

process. In 1997, there was a change in ownership, and Maruti became predominantly government

controlled. Shortly thereafter, conflict between theUnited Front Governmentand Suzuki started. Labour

unrest started under management of Indian central government. In 2000, a major industrial relations issue

began and employees of Maruti went on an indefinite strike, demanding among other things, major

revisions to their wages, incentives and pensions.[20][21]

Employees usedslowdownin October 2000, to press a revision to their incentive-linked pay. In parallel,

after elections and a new central government led byNDA alliance, India pursued a disinvestments policy.

Along with many other government owned companies, the new administration proposed to sell part of its

stake in Maruti Suzuki in a public offering. The worker's union opposed this sell-off plan on the grounds

that the company will lose a major business advantage of being subsidised by the Government, and the

union has better protection while the company remains in control of the government.[20][22]

The standoff between the union and the management continued through 2001. The management refused

union demands citing increased competition and lower margins. The central government prevailed and

privatized Maruti in 2002. Suzuki became the majority owner of Maruti Udyog Limited.[23][24]

Manesar violence July 2012 [edit]

On 18 July 2012, Maruti's Manesar plant was hit by violence as workers at one of its auto factories

attacked supervisors and started a fire that killed a company official and injured 100 managers, including

two Japanese expatriates. The violent mob also injured nine policemen.[25][26]The company's General

Manager of Human Resources had both arms and legs broken by his attackers, unable to leave the

building that was set ablaze, and was charred to death. The incident is the worst-ever for Suzuki since thecompany began operations in India in 1983.[27]

Since April 2012, the Manesar union had demanded a three-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.Initial reports claimed wage dispute and a union spokesman alleged the incident may be caste-

related.[28][29]According to the Maruti Suzuki Workers Union a supervisor had abused and made
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discriminatory comments to a low-caste worker.[30]These claims were denied by the company and the

police.[26]The supervisor alleged was found to belong to a tribal heritage and outside of Hindu caste

system; further, the numerous workers involved in violence were not affiliated with caste either. Maruti

said the unrest began, not over wage discussions, but after the workers' union demanded the

reinstatement of a worker who had been suspended for beating a supervisor.[27]The workers claim harsh

working conditions and extensive hiring of low-paid contract workers which are paid about $126 a month,about half the minimum wage of permanent employees.[30]Maruti employees currently earn allowances in

addition to their base wage.[31]Company executives denied harsh conditions and claim they hired entry-

level workers on contracts and made them permanent as they gained experience. It was also claimed that

bouncers were deployed by the company.[28]

India Todayclaimed[32]that its interviews of witnesses present at the plant confirms the dispute was over

the suspended worker. The management insisted that they must wait for completion of inquiry underway

before they can take any action on the employee suspended for beating up his supervisor. The

management was then told, "you will be beaten up after we get a signal." Thereafter, the workers broke

up into groups, went on to set the shop floor as well as all offices afire. They searched for management

officials and proceeded with a barbaric beating of the officials at the site with iron rods.

The police, in itsFirst Information Report(FIR), claimed on 21 July that Manesar violence may be the

result of a planned violence by a section of workers and union leaders. The report claimed the worker's

action was recorded on close circuit cameras installed within the company premises. The workers took

several managers and high ranked management officials hostage. The responsible Special Investigative

Team official claimed, "some union leaders may be aware of the facts, so they burnt down the main

servers and more than 700 computers." The recordedCCTVfootage has been used to determine the

sequence of events and people involved. Per the FIR, police have arrested 91 people and are searching

for 55 additional accused.[33][34]

Maruti Suzuki in its statement on the unrest,[35]announced that all work at the Manesar plant has been

suspended indefinitely. A Suzuki spokesman said Manesar violence won't affect the auto maker'sbusiness plans for India.[27]The shut down of Manesar plant is leading to a loss of about Rs 75

crore[36]per day.[37]On 21 July 2012, citing safety concerns, the company announced alockoutunderThe

Industrial Disputes Act, 1947pending results of an inquiry the company has requested of the Haryana

governmentinto the causes of the disorder. Under the provisions of The Industrial Disputes Act for

wages, the report claimed, employees are expected to be paid for the duration of the lockout.[36]On 26

July 2012, Maruti announced employees would not be paid for the period of lock-out in accordance

withIndian labour laws. The company further announced that it will stop using contract workers by March

2013. The report claimed the salary difference between contract workers and permanent workers has

been much smaller than initial media reports - the contract worker at Maruti received about 11,500 per

month, while a permanent worker received about 12,500 a month at start, which increased in three

years to 21,000-22,000 per month.[38]In a separate report, a contractor who was providing contract

employees to Maruti claimed the company gave its contract employees the best wage, allowances and

benefits package in the region.[39]

Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said this kind of violence

has never happened in Suzuki Motor Corp's entire global operations spread across Hungary, Indonesia,

Spain, Pakistan, Thailand, Malaysia, China and the Philippines. Mr. Nakanishi went to each victim

apologising for the miseries inflicted on them by fellow workers, and in press interview requested the
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central and Haryana state governments to help stop such ghastly violence by legislating decisive rules to

restore corporate confidence amid emergence of this new 'militant workforce' in Indian factories. He

announced, "we are going to de-recognise Maruti Suzuki Workers Union and dismiss all workers named

in connection with the incident. We will not compromise at all in such instances of barbaric, unprovoked

violence." He also announced Maruti plans to continue manufacturing in Manesar, thatGujaratwas an

expansion opportunity and not an alternative to Manesar.[40][41]

Labour disputes are endemic in the auto industry of India and have affected other manufacturers. India

has strictlabour laws, but their application is widely sidestepped by hiring low-wage contract

workers.[30]Manesar violence adds to India's recent incidents of labour disputes turning to violence.

Analysts claim[42][43]recent incidents like Manesar violence suggest a need for urgent reform of archaic

Indian labour laws, the rigid rules on hiring and layoffs, which harm theformal sectorand

discourageinvestment in India. Government mandated procedures for labour dispute resolution are

currently very slow, with tens of thousands of cases pending for years. The government of India is being

asked to recognise that incidents such asManesarviolence indicate a structural sickness which must be

solved nationally.

The company dismissed 500 workers accused of causing the violence and re-opened the plant on 21

August, saying it would produce 150 vehicles on the first day, less than 10% of its capacity. Analysts said

that the shutdown was costing the company 1 billion rupees ($18 million) a day and costing the company

market share.

The previous week company officials had announced that Maruti would scrap the practice of hiring

contract workers and that the workers currently on temporary contracts would be made permanent. It

would begin the process of hiring new workers on a permanent basis from 2 September 2012 .[44]

This report appeared onGurgaon Workers News

1. Balance Sheet

2. The Factory

3. The Working Conditions

4. The Chronology of the Strike

5. No Conclusion

*********
http://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-40http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-40http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-40http://en.wikipedia.org/wiki/Labour_in_India#Labour_laws_in_Indiahttp://en.wikipedia.org/wiki/Labour_in_India#Labour_laws_in_Indiahttp://en.wikipedia.org/wiki/Labour_in_India#Labour_laws_in_Indiahttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-HP72112-30http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-HP72112-30http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-HP72112-30http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-42http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-42http://en.wikipedia.org/wiki/Labour_in_India#Labour_structure_in_Indiahttp://en.wikipedia.org/wiki/Labour_in_India#Labour_structure_in_Indiahttp://en.wikipedia.org/wiki/Labour_in_India#Labour_structure_in_Indiahttp://en.wikipedia.org/wiki/Economy_of_India#Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Economy_of_India#Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Economy_of_India#Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-44http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-44http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-44http://gurgaonworkersnews.wordpress.com/2011/07/09/gurgaonworkersnews-no-41-july-2011-balance-sheet-of-maruti-suzuki-workers-strike/http://gurgaonworkersnews.wordpress.com/2011/07/09/gurgaonworkersnews-no-41-july-2011-balance-sheet-of-maruti-suzuki-workers-strike/http://gurgaonworkersnews.wordpress.com/2011/07/09/gurgaonworkersnews-no-41-july-2011-balance-sheet-of-maruti-suzuki-workers-strike/http://sanhati.com/excerpted/3887/#1http://sanhati.com/excerpted/3887/#1http://sanhati.com/excerpted/3887/#2http://sanhati.com/excerpted/3887/#2http://sanhati.com/excerpted/3887/#3http://sanhati.com/excerpted/3887/#3http://sanhati.com/excerpted/3887/#4http://sanhati.com/excerpted/3887/#4http://sanhati.com/excerpted/3887/#5http://sanhati.com/excerpted/3887/#5http://sanhati.com/excerpted/3887/#5http://sanhati.com/excerpted/3887/#4http://sanhati.com/excerpted/3887/#3http://sanhati.com/excerpted/3887/#2http://sanhati.com/excerpted/3887/#1http://gurgaonworkersnews.wordpress.com/2011/07/09/gurgaonworkersnews-no-41-july-2011-balance-sheet-of-maruti-suzuki-workers-strike/http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-44http://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Economy_of_India#Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Labour_in_India#Labour_structure_in_Indiahttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-42http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-42http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-HP72112-30http://en.wikipedia.org/wiki/Labour_in_India#Labour_laws_in_Indiahttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-40http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-40http://en.wikipedia.org/wiki/Gujarat


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1. Preliminary Balance Sheet of the 13-Days Sit-Down Strike at Maruti Suzuki

Factory in Manesar/Gurgaon, India

From 4th to 17th of June 2011 around 2,000 young workers engaged in a wildcat sit-down

strike at Maruti Suzuki factory in Manesar [1]. With the following text we hope to contribute

to the necessary debate about this important strike and invite friends and comrades,particularly in Delhi area, to share their experiences and views. Before we go into

chronological details of the strike we try to provide a rough political summary.

It was an important strike in local terms. The two Maruti assembly plants coordinate

hundreds of local supplying factories [2], the Manesar plant dominates a new industrial area

of major importance. There has been silence at Maruti Suzuki for more than a decade: the

workers in Gurgaon plant have been silenced by the lock-out in 2000/01 [3], and they did

not join the strike in June. The Manesar plant was opened in 2006/07, but the young and

casualised work-force had not found their voice as yet.

It was a hard strike. The workers gave no notice to management, they stopped production

completely and around 2,000 workers stayed inside the factory for nearly two weeks. The

strike postponed the production of 13,200 cars and caused a loss of about 6 billion Rs.

(133 million USD / 100 million Euro). Maruti Suzukis June sales figures dropped by 23 per

cent, the sharpest fall in two and a half years. In July management announced to shift one

production-line back from Manesar to Gurgaon plant. Workers continued the strike despite

the police stationed within the factory premises and despite strike having been officially

declared illegal by Haryana government on 10th of June.

Management and state did not dare to attack the workers inside the factory a lot of

workers struggles in the area had been attacked physically once workers left the factory.

This is partly due to the managements fear that plant and machinery could be damaged

during the course of a police intervention, but mainly due to a fear of the state that in the

current local and global social situation repression could cause unpredictable trigger

effects. While state and management did not know how to deal with the situation, the main

unions repeatedly emphasised, that the workers are victimised, that the workers, and notthe company, are in a difficult spot.

Despite the young workers courage and the fact that the company was hit at times of full-

capacity the strike ended in a defeat for the mass of workers: they did not enforce any

betterment of conditions and wages, which was their main concern. Instead the agreement

included a punishment wage cut of two days wages per day of strike something rarely

seen in industrial relations in India. Another element of the agreement states that the 11

workers (union leaders) sacked during the strike were taken back, though they have to

undergo an inquiry. We are not able to say whether workers at large felt demoralised after

the strike, but we can imagine it.

The strike could have spread. The initial demands and underlying motivations of the Maruti

workers matched the atmosphere of the young work-force in the area: more money, lesswork. In Manesar more than a hundred thousand young workers have similar concerns [4].

The strike stopped production at around 200 local supplying factories, but no active

connections were established between Maruti workers and the wider work-force in the

territory. This might be one of the main differences to the Honda strike in China last

summer and main reason for the fact that the strike was very underrepresented in both

mainstream and left-wing global media despite the emerging position of Maruti Suzuki

and India in the global market.


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The focus on formal representation choked the dynamic of the strike. During the course of

the strike, the direct demands of the workers were reduced to the question of which union-

flag should be put up at the gate. We could summarise the main reasons for the defeat of

the strike as follows: workers raised direct demands, but early on these demands were

integrated in the workers hope that by formal recognition of an independent union their

material situation would improve; we then saw an attack both by management and state,cutting of electricity, isolation of workers by army of security guards, declaring the strike

formerly illegal and last but not least by sacking the 11 leaders; the main unions then

offered support and at the same time focussed the struggle on the question of taking back

the leaders and workers rights for representation. Workers did not manage neither to

break out of the material encirclement set-up by company management and state nor to

escape the embrace by the main unions.

The fate of the strike was handed over to the negotiating forces. It is nave to repeat the

phrase of betrayal of the main unions. It evades the question of what gives them the

power to betray in the first place. Instead we should focus on the question how workers can

struggle in a way, which leads both to an immediate material gain and to political

experience of self-organisation and generalisation beyond the company walls the latter

becoming increasingly a precondition for the former.

Friends translated parts of this text into Taiwanese/Chinese:

http://emblack.wordpress.com/2011/07/13//

[1]

A short video documentary can be found here soon(with English and German subtitles):

Video

[2]

Short articles and reports from the local supply-chain:

GurgaonWorkersNews no.33



[3]Material on re-structuring at Maruti Suzuki Gurgaon plant:


[4]

Paper on Potential for Wage Struggle Offensive in Gurgaon-Manesar:


*******

2. The Factory

The factory was opened in 2006/2007, some of the production lines were moved from

Maruti Suzukis main plant in Gurgaon, which is situated in about 20 km distance from

Manesar. The Manesar plant manufactures different models from the Gurgaon plant; thereis little integration or dependency in terms of production process between these two

factories. The factories source parts from similar suppliers, but the larger suppliers have

built separate units for the new plant, e.g. Ricos main plant supplies 90 per cent to the old

Gurgaon plant, only 10 per cent to Manesar. The factory employs around 3,500 to 4,000

workers and churns out 1,200 cars a day. The assembly lines run on two shifts, the rest of

the plant (weld-shop, body-shop) runs 24 hours. The production volume has been increased

by about 200 cars a day during the last two years. The strike hit Maruti Suzuki in a relative


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boom-period, some weeks before the conflict in Manesar, Maruti Suzuki announced to open

an additional plant, probably in Gujarat a location closer to the export harbours.

Maruti Suzuki is a dominating company in the region and closely related to the political

machinery. This is mainly because of the industrial dependency of hundreds of smaller

production units, reaching down to slum production and small work-shops, partly because

the state still holds shares in Maruti Suzuki and partly because Haryana state sources a fair

chunk of tax revenue from Maruti Suzuki. In 2010 the company paid around 13 billion Rs

tax to the regional state.

Workers in the Manesar plant are younger than in the Gurgaon plant, and their wages a

much lower, their contracts more casual. Most of the workers at Gurgaon are in their

forties. They have family responsibilities and are scared of the management. They have

become accustomed to the managements unjust ways and abusive behaviour. They will

never raise their voice against injustice but we will, said a 25-year-old who claimed to be a

worker at the Manesar plant. The youth, who did not want to be named, said he had slipped

out to get food for the other strikers and organise support for the protest from outside. The

Gurgaon plant has 7,000 employees and the average worker is in his mid-forties. The

employees at the Gurgaon plant are older. They have grown with the company and know

the benefits of working under discipline. Manesar is a young factory with mostly young

employees and I think there is an absence of a calming and more mature influence, Maruti

Suzuki chairperson R.C. Bhargava said. (Telegraph India, 12th of June)

In the Gurgaon plant the salary of skilled workers adds to 30,000 40,000 Rs including the

overtime and incentives, whereas the skilled labourers at Manesar get only around 13,000

to 17,000 Rs. After the lock-out at the Gurgaon plant in 2000/01 around 2,500 permanent

workers were replaced by temporary workers. Unfortunately we have little insights how

these workers in Gurgaon saw and debated the strike of their casualised work-mates inManesar.

The factory itself is situated at the fringe of a huge industrial area, location for around 500

manufacturing units, partly garment factories, but dominated by automobile suppliers and

the Honda motorbike and scooter plant see satellite picture. The workers themselves live

in four five villages close to the industrial area. Some of them mainly permanent

workers live further away and arrive in company buses they have to pay 600 Rs per

month for the company transport.


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Maruti Suzuki had hoped to de-risk their production by relocating the new production lines

to a fair distance from the old troubled plant in Gurgaon, with a fresh workforce. The

following quote from an article, published a couple of months before the strike,

demonstrates nicely how fragile the seemingly harmonious production relations in modern

capitalism are:

Workers inputs help Maruti save Rs 160 crore at its Manesarplant

At a time when frequent labour unrests are plaguing the Indian auto industry, car maker

Maruti Suzuki was able to save about Rs 160 crore in 2010-11 by implementing suggestions

given by workers at its Manesar plant. We encourage our people to give their inputs that

could increase efficiency and save money, said S Y Siddiqui, managing executive officer

(administration) of Maruti Suzuki. The company had received about 2.29 lakh suggestions

last fiscal compared to about 129,000 suggestions in the previous fiscal, he added. This is in

sharp contrast to the companys past when strike by its workers crippled productions for

three months from November 2000 to January 2001. Since then the company has had a

stable relationship with its workers. When the carmakers sales crossed one million in 2009-

10, the company celebrated the milestone by gifting a gold coin to each of over 8,600

employees. (Times of India, 8th of April 2011)

3. The Working Conditions

There are around 3,500 to 4,000 workers employed in the factory, but their status differs

significantly. Around 900 to 1,300 workers are permanent workers, around 800 to 1,000

trainees, around 400 apprentices and around 1,000 to 1,200 temporary workers hired

through contractors. In general, initially workers are hired as apprentice (generally after

completing ITI course technical college), then taken as temporary workers, and then

promoted as trainee, and finally, but not necessarily they reach to the stage when they can

get status of regular workers. Generally they are kept blocked at the stage of temporary

workers and as trainees. In this way Maruti Suzuki more or less matches the general

conditions in Gurgaon and Manesar, where around 70 to 80 per cent of the work-force istemporary.


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Wages differ according to contractual status. Permanent workers are paid between 13,000

and 17,000 Rs, trainees get between 8,000 and 10,000 Rs, temporary workers are paid

around 6,500 Rs and apprentices around 3,000 Rs to 4,200 Rs. Compared to the automobile

industry in the global North wages at Maruti Suzuki are obviously low. Having said this, the

relative wage of a permanent worker at the Gurgaon plant (around 30,000 Rs / 500 Euro /

660 USD) will be higher than the wage of a temporary worker in car plants in Germany orFrance. 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.

We also want to earn more and live in a big house, said Vinkendra Sharma, a protesting

worker at the Manesar plant. Sharma, employed as a worker on the factor floor is originally

from Panna district of Madhya Pradesh and earns Rs. 16,000 per month. According to him,

not only does he have to contend with increasingly expensive food and lodging expenses,

but has also to send money to his family. Ashok Kumar, another agitating worker, believes

that formation of an independent union can take care of their rights and provide them a

better living standard that is missing so far. We cannot go to the washroom during any

other time, and in case we do, we have to give an unconditional apology letter, Manish

Kumar said, a claim that was echoed by other workers. We are giving our best to the

company, but what are we getting in turn? The production capacity of Maruti has gone up

from 10 lakh units in 2009-10 to 12.7 lakh units in 2010-11, but our salary has not gone up

at all. Where is the incentive for hard work? asked Ashok Kumar. Sandip Kumar, a 20-

year-oldcontract labourer at the Manesar plant, said: Our colleagues who worked at

Suzukis plant in Japan told us that they get at least Rs. 40,000 for what we are doing.

According to 29-year old Rajesh (name changed on request) who has worked for three

years with Maruti, the companys compensation package for workers is flawed. His basic

salary is Rs 4,000 and he gets an additional Rs 9,000 every month for attendance and

production. Dharminder, one such contract labourer, has worked with Maruti for two years,

attaching bumpers and other accessories on car faces. His Rs 6,400-a-month salary, he

claims, has not improved. (Livemint, 13th of June 2011)

It is not only that wages are comparably low, they also come with fairly strict conditions

attached. The basic salary for permanent workers and temporary workers is the minimum

wage of around 5,000 Rs, the rest of the wage are incentives. If a worker is few minutes

late, then his half day salary is cut. If a worker takes one day leave, he looses about 1,500

Rs to 2,000 Rs as salary cut in various forms of incentives and allowances. If a worker takes

two day leave, he almost looses all the incentives. The fact that the company sees itself

compelled to give two thirds of the wage incentives hints at a disciplinary problem.

Explaining the rationale, a Maruti official said that every unplanned leave by a worker, it

costs the company heavily. Each worker has been given a specific role in the production

and supply chain. If they do not inform the supervisor well in advance, then production getshampered severely, he said. Most of the workers come from far away regions, they need

extra-holiday to see family and friends back home.

Nikhilesh Pandey, 25, a former worker at the Manesar plant who was at the factory gate to

deliver lunch to his striking cousin, agreed that Maruti paid better than the others. But we

are not donkeys. We cannot work like slaves, he said, adding that he worked at the factory

for two years but quit when he was refused leave to attend to urgent business back home in

Uttar Pradesh. The problem is the immense pressure. They are extracting the work of


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5,000 from half that number, Pandey said. This means fewer breaks during shifts and no

leave. (Telegraph, 12th of June)

Work at Maruti Suzuki is hard, which also pushes workers into taking leave. According to

workers, the most serious problem is the intensity of work and the brutality of the way it is

imposed on the workers. We get a lunch break of exactly 30 minutes and a tea break of 5minutes. The canteen is 400 meters away from the workplace. In those thirty minutes, we

have to remove our safety clothes and goggles, run to the canteen, stand in so many

different lines to pick up food, gulp down the food, go to the toilet, run back, put the

goggles and safety clothes on again, and resume work. The lines are long because all the

workers have break at the same time. If we are even one minute late, Rs 1000-1500 is

deducted from our salary. Imagine that in the 5 minute tea break, we are supposed to have

tea and snacks and restart work. There is no break allowed for visiting the toilet at any

time. If a reliever does not come, a worker is forced to work a 16-hours shifts. Those

workers who refuse to do over time are abused and insulted. (InterviewMazdoor Ekta

Lahar)

These conditions form the background of the strike, they form the background of the

general situation of workers in Gurgaon and beyond.

4. Development of the Strike

The company knew that trouble was brewing, they knew that some workers planned on

registering a separate union and the company had already prepared legal documents for a

possible expulsion of workers from the premises. The strike happened one month before

union elections at Maruti Suzuki. So far Maruti Suzuki management tried to back a single

union, the Maruti Suzuki Kamgar Union, for both Gurgaon and Manesar plant. This union

had been set-up by forces close to management after the lock-out at Gurgaon plant in

2000/2001. Workers in Manesar did not feel represented by this union, they did not feel

that their grievances were addressed by the union. The actual outbreak of the strike, and

the fact that both permanent workers as the potential members of the new union andcasual temporary workers took part, will have surprised the management. But why didnt

these workers raise these issues and discuss (them) with us? They have never raised any of

these issues at any formal level with the management, Maruti Suzuki chairperson Bhargava

said. It remains a mystery to me why theydidnt start a dialogue or a discussion or even

(send) a letter detailing their demands. (Telegraph, 12th of June)

On 3rd of June, eleven leaders of the workers went to Chandigarh to meet the Labour

Department to complete the formalities regarding registration of our union on June 3, 2011.


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On the morning of that day, the labour department officials faxed the news of our

application to the management. Immediately, the management started pressuring workers

inside the factory to prevent them from joining the new Union. They began forcing workers

to sign blank papers. Senior officials of another Maruti Suzuki plant also joined in this

activity. As soon as the leadership of our union came to know of this activity, we mobilized

workers against it. On the morning of June 4, 2011, through struggle, we were able toretrieve some of the blank signed papers from the management. By the afternoon, it

became clear that the management was using all kind of tricks to break our unity. In such

circumstances, we were forced to go on flash tool down strike from the afternoon of June 4,

2011. (Interview with Maruti Suzuki union leader, www.cgpi.org)

On the 4th of June after the change between morning and late shift around 2,000 workers

stop work and remain in factory. Later on, the C-shift would not be refused entry by

management and these workers largely remained outside the factory. All the workers of the

company joint the struggle permanent, casual, as well as apprentices. As I was told by a

young worker how the workers tied a white hanky around their faces so that the

trainee/apprentice workers, casual and contract workers could not be distinguished by the

management (the Maruti chairman R.C.Bhargava is seen in the news channels to lament

how there is no visible leadership whom they could talk to). The police are still inside,

having occupied the canteen, and increasingly bouncers are also there. The inside-outside

workers correspondence doesnt seem to be going towards anything more substantial than

food/mobile battery exchange. (4th of June, Report by a friend).

During this initial stage, workers raised various issues and demands: low wages, incentive

cuts, few breaks. The workers have demanded that the temporary workers should be given

preference for permanent posts in new departments, which the company is currently

building on the premises. In a first reaction management said that workers should give up

the strike and make use of the upcoming union elections: The Maruti union will hold

elections next month. I am sure they can show their strength there. They can air their

grievances there, he [Maruti Suzuki chairman] said. (Business Standard, 6th of June 2011)

At the same time management undertook steps to threaten and isolate the striking workerswithin the factory premises.

On 5th and 6th of June management sealed the gates and placed a row of security guards

in front of them in order to prevent exchange between workers inside and outside, between

workers and supporters and media. One of the demands of the workers visible on the self-

made placards was to be allowed to speak to the media. Management also restricted water,

food, electricity and toilet access. Only after a demonstration outside the gate on 6th of

June, the food supply through family and friends was permitted again. Eleven workers were

officially dismissed on the 6th of June. Police was deployed both inside and outside the

premises, they removed some tents, which supporters had put up, but largely remained

looming in the background. Workers also complained that management would call their

relatives back at home and ask them to convince their unruly sons and nephews to goback to work.

On the 8th of June the main unions AITUC, CITU, HMS, INTUC, UTUC formed a joint action

committee to support the strike. Although this committee dominated by AITUC had no

formal link with neither the Maruti workers nor the new Maruti union in formation, it became

the main broker and spokesperson of the strike. Often quoted representatives were union

leaders from Honda HMSI, Hero Honda Dharuhera and Rico Auto. On the 9th of June this

action committee mobilised workers of 50 to 60 factories in Gurgaon, around 1,000 to

2,000 union members gathered in front of the gates. Sachdeva, secretary, AITUC, said, As


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we are a major union in this area, its our prime responsibility to support any cause that

involves the rights of our affiliated workers. We are observing a days satyagraha at the

entrance of Marutis Manesar plant. If the management doesnt accept our demands today,

the workers of other neighbouring plants will go on a days strike. We are calling for the

termination of the 11 workers to be revoked. The workforce says it will only start production

when the 11 are taken back and given assurances they [management] will not interfere inthe union. (Business Standard, 10th of June 2011) From then on no other demands and

concerns of the workers were mentioned.

Q: What are the other conditions that you have asked the management to agree with and

what conditions has the management agreed to comply with?

A: There is just one agreement. All the 11 workers should be taken back.

Q: Is that the only demand?

A: At the moment.

(Interview with Gurudas Dasgupta, All India Trade Union Congress (AITUC) General

Secretary, CNBC, 16th of June 2011)

On 10th of June the over-all pressure on the striking workers increased and pushed them

further into the arms of the main unions. The Haryana government has, under the

provisions of the Industrial Depute Act, 1947, referred the matter of ongoing strike in Maruti

Suzuki Udyog Ltd, Manesar, by the workers to the competent labour court and has also

passed the orders prohibiting the continuance of the strike in the industrial unit, Minister of

State for Labour and Employment Shiv Charan Lal Sharma said in a statement. The strike

was officially called illegal.

Two truckloads additional police arrived on the factory premises. Though the Gurgaon

district magistrate said deployment of additional forces inside the 600-acre premises was

just a precautionary measure, sources informed that striking workers could be booted out of

the factory with the use of police force. We have a court order that allows us to evict these

workers from the factory citing protection of the equipment, said RC Bhargava, chairman,

MSIL, adding police were there only as a precautionary measure. Ravinder Kulharia, a

striking worker, said workers feared for their lives. We do not understand as to why theadministration has moved such a large number of police personnel when we have been on

peaceful strike from the beginning, he said. (Hindustan Times, 10th of June 2011)

Workers probably knew beforehand that the strike was illegal and it is unlikely that the

state would have used police-force to expel 2,000 workers from a modern car plant in one

of the main industrial areas in the current situation. Nevertheless, the pressure on workers

increased and around 250 workers decided to leave the occupation on 10th of June. I fell

sick. I was relieved at 3am as there was no medicine in the factorys dispensary, said one

of the workers who has left the factory. There is only one toilet open for 2,500 workers.

The rest have been locked. At that point the unions kept on repeating that the workers are

in trouble, although actually it looked like management and state were not sure what to do

about the situation.The strike started to kick in and to build up pressure. Maruti management repeatedly

reassured the market that car dealers have 20 to 28 days stock and that the loss of 6,000

cars can be made up for. More importantly the impact of the strike was felt down the

supply-chain. Due to lack of storage space around 200 to 250 of the suppliers, most of them

located in the proximity of the plant, had to reduce or stop production. To add pressure on

workers Maruti management announced that the company would go ahead with a closure

of the plant for the annual maintenance work from 20th to 25th of June 2011.


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On 12th of June Maruti Suzuki management offered to take back 5 of the 11 sacked

workers, but the union refuses. The management has agreed to reinstate five of the 11

sacked workers. However, we want all the employees to be taken back. Besides, the

company has to give us an assurance in writing of not taking any disciplinary action, said

Shiv Kumar, a sacked technician. Kumar has been nominated as the general secretary of

the new union.The main unions announce a two-hour solidarity strike for the 14th of June 2011. We will

be distributing pamphlets across the Gurgaon and Manesar factories. The two-hour tool-

down from 9 a.m. to 11 a.m. will serve as a warning. If the issues are not resolved, then on

Wednesday the unions will hold another meeting to decide on the date for the one-day

strike, Suresh Gaur, president of the Honda HMSI union said. Meanwhile AITUC general

secretary Gurudas Dasgupta held talks with Haryana Chief Minister Bhupinder Singh Hooda.

The workers morale is high; this unity is unprecedented; all trade unions of Gurgaon have

rallied round the striking workers. After talking to the Chief Minister, I am hopeful of a

positive outcome, Mr. Dasgupta said. (The Hindu, 12th of June 2011)

While Dasgupta negotiated with the Chief Minister and asked the Prime Minister to intervene

his colleague Sachdeva, secretary of AITUC announced that AITUC will ask the Maruti

Suzuki workers to work overtime once the dispute is settled: We want it [the dispute] to be

resolved. Even the workers are anxious to restart the production. Hopefully, some solution

will be found. We want the workers should resume production, normalcy should prevail and

we will persuade the workers to make up for this loss of production by working extra hours

or on holidays. AITUC wants industrial development to take place in Haryana. We are not

against FDI investments but we feel these multinational corporations should respect our

national laws, and should allow workers to form their own union. (CNBC, 13th of June

2011)

On the 13th of June the company management announces that it would accept a separate

union for the Manesar plant, but under the umbrella of company council, which would be

responsible for wage revisions and other general issues. S Y Siddiqui, the head of human

resources, said: We are ready to be flexible on their demand for a plant-level union.However, it has to comprise only those working at the plant. It cannot have outsiders. That

is how Maruti has been run for 27 years. The proposed constitution of the new union allows

one-third members from outside.

On 14th of June AITUC secretary Sachdev first announced that the two-hours solidarity

strike is on, only to proclaim that it is called off. The tool-down strike has started and about

60 65 factories workers are taking part in it. If in a day or two, no solution comes out,

then workers will go on for a full-day strike, AITUC secretary D L Sachdev said. (Times of

India, 14th of June 2011) The two-hour strike has been called-off for today on the appeal

of the Chief Minister and the Labour Commissioner. They sought a days time to resolve the

issue. Consequently, the strike has been postponed for 24 hours, AITUC Secretary D L

Sachdev. (Press Trust of India, 14th of June 2011)On the 16th of June Maruti management told the media that it would try to revive

production lines in the Gurgaon plant in case the strike dragged on for longer

unnecessarily so, because a day later, on 17th of June, the dispute was settled. The workers

were represented by leader of the proposed new union Maruti Suzuki Employees Union Shiv

Kumar and national secretary of AITUC Sachdev. The company has now agreed that we

would not be asked to sign the paper. Also, the fact that Maruti took back the 11 workers

shows that our demands were met, said Shiv Kumar.


17/132

Actually the eleven workers have to undergo an inquiry before they are taken back. The

other main outcome of this victory is that workers lose only two days wage per each day

of strike, instead of eight days, which would be legally possible under no work no pay-

rule. This kind of official punishment for going on strike inscribed in the agreement is a

rather new development. Maruti management might penalise workers with payment of an

additional days wage per strike day if workers show any signs of indiscipline over the nexttwo months. The plant will remain closed on Friday, the 17th of June, as a rest day for

both workers and management and, instead, will function on Sunday. A puja [religious

ceremony] has been called at 12 pm tomorrow as a symbolic way of starting things afresh,

the administration official said. There was no mention of the second union in the

agreement signed yesterday, simply because the workers at the Manesar plant do not

require the managements permission to form a new union. Gurudas Dasgupta, general

secretary, All India Trade Union Congress (AITUC). (Business Standard, 17th of June 2011)

The national secretary Sachdev concluded: There has been massive loss of production and

the workers are aware of this. Hence they are willing to work overtime and make up as

much as possible for the loss in production.

After they had digested the shock of the strike, Suzuki management tried to play down its

impact. In a market where we sell 1.2 million vehicles a year, 16,000 vehicles was a

matter of inventory adjustment, CEO Osamu Suzuki said. (23rd of June, Deccan Herald).

Actually June sales figures did not look too good, the highest decline of monthly sales in two

and a half years. While pretending that they are not bothered, their deeds speak differently.

On 6th of July 2011 Maruti Suzuki management announced to shift the production of the

Swift DZire from Manesar plant back to Gurgaon plant, were it was initially manufactured.

At the same time the extension of production capacities in Manesar are supposed to

continue

5. No Conclusion

We cannot draw any useful conclusions unless we have more insights about what workers

experiences were during the strike and what they think and debate about the strike in

hindsight. This will require more time and longer conversations.

Majdoor Bigul is one of the political groups which supported the striking workers and whose

activists were physically attacked by company paid goons while speaking to workers in the

surrounding villages. They concluded: The Management and the Haryana govt. managed to


18/132

coerce the workers leaders for an abject surrender in a deal brokered by the central trade

unions. (http://workersresist.net/?p=33)

We dont think that betrayal of trade union leadership is a satisfying explanation for

defeats of workers struggles. It does not explain why workers, who were willing to take on

the hardship and risk of two weeks factory occupation, would accept an agreement

brokered by some external self-proclaimed leaders or AITUC bigwigs if they are not happywith it. As far as we are aware of the workers did not develop an organised structure of

collective decision-making during the occupation, which would have prevented a betrayal.

They relied on their leadership and their middlemen function. A temporary worker who

friends met after the strike told us that a lot of workers were not aware of the union

involvement and negotiations. The Maruti union leadership was threatened with dismissal,

for them the agreement the chance to get their job back was a victory.

The accusation of betrayal also implies a certain illusion concerning the character of trade

unions. We have decided to call a one-day strike to protest against the indecisive Maruti

management, Bhagwan Malik, HMSI Employees Unions secretary said. We will give them

some time before taking a final call on the issue. If Maruti Suzuki fails to act on workers

demands, we will resort to a strike at our plants in coming days, Raj Kumar, president of

Rico Autos workers union at the Daruhera plant, near Manesar said. We will extend all

support to Maruti employees and may go on strike to express our solidarity. If required, we

will come to a common location and protest for joint demands, Kamal Sharma, Employees

Union president at Hero Hondas Daruhera plant, said.

If we have a look at how some of the main supporting unions have developed as

representative legal bodies of the permanent work-force we can see that their behaviour

during the Maruti strike was not treacherous, but business as usual. At Rico Auto,

unionised permanent workers earn up to six times as much their temporary work-mates and

the wage division has increased since establishment of the union [5]. The union at Hero

Honda declined membership to temporary workers and did not support the 1,500 locked-out

temporary workers during the 2008 dispute [6]. Since the establishment of the union at

Honda HMSI the material division between permanent and temporary workers hasincreased. We quote from an earlier article:

Just to give the example of the union at Honda HMSI in Gurgaon. No one will deny the

genuine character of the union, it has been fought for with blood, it has not been

established as a company union, no one will approach them with betrayal. Since it has been

recognised in 2005, wages of the permanent workers the union members have

quadrupled: before May 2005 permanent workers used to get around 6,900 Rs, current

wages are around 30,000 Rs plus, including incentives and bonuses. At the same time

permanent workers have become a minority in the plant. In 2005 there were 1,200

permanent, 1,600 trainees, 1,000 workers hired through contractors and 400 apprentices.

Today there are 1,800 permanent workers and 6,500 workers hired through contractors in

production departments, plus around 1,500 workers hired through contractors for cleaning,canteen, driving etc.. The temporary workers in production get around 6,800 Rs per month,

less than a quarter of their permanent work-mates. The permanent workers have retained

mainly supervisory positions. As part of the union-management wage agreements the

permanent workers wages contain a large share of productivity bonus. The company wants

to make them benefit from the increased work load which has been imposed on the

shoulders of the temporary work-force. The actual material power of the union has

decreased, they compensate the decline by making themselves important managers of the


19/132

wage hierarchy not as one act of sell out, but as result of trade unions essential

character within the wider process of re-structuring of class relations.

The Maruti Suzuki strike in June is also an indicator for conflicts returning to the central

assembly plants. During the 1990s and early 2000s companies like Maruti were able to

guarantee more stable conditions in the centres by paying relatively high wages. The

general pressure on automobile companies to reduce labour costs has increased significantlysince the mid-2000s. Only three months earlier workers at General Motors plant in Gujarat

went on a wildcat strike [7]. Workers at Maruti showed that material divisions can be

overcome in struggle, in future workers will have to find ways to keep the struggle in their

own hands.MARUTI SUZUKISHINZO NAKANISHILABOUR UNRESTMANESARCAR

What triggered the violence at Marutis

Manesar factory?What triggered the violence at Marutis Manesar factory?Amrit Raj

First Published: Fri, Jul 20 2012. 12 30 AM IST

ALSO READ

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Maruti officials refuse to join work at Manesar

Updated:Fri, Jul 20 2012. 08 32 PM IST
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20/132

Manesar: Maruti Suzuki India Ltds Manesar plant was witness to prolonged labour strife last year,

but the violence unleashed on Wednesday that led to one person being killed caught its victims

completely unawares.

Some of us jumped off the first floor to save our lives as we saw a mob of workers, hundreds of

them, rushing towards us, one of the injured Maruti officials told reporters at a hospital in Gurgaon

on Thursday. He didnt want his identity to be disclosed because he feared for his safety.

They were armed with car parts, rods and other implements, the official said. They didnt spare

women either, said the official whose arms and legs bore marks of the encounter. The company said

the violence was planned, while the union denied there was any conspiracy.

Suzuki Motor Corp.s Indian unit didnt say when

the plant would resume production.

The person who died, Awanish Kumar Dev, generalmanager (HR), was burnt to death by the mob, the

company said in a press release. Devs charred

body was recovered by the police late on

Wednesday night and identified by his family on

Thursday.

Marutis Manesar plant union president Rammehar Singh denied any wrongdoing.

The Maruti Suzuki Workers Union is anguished at the recent developments (at) Manesar where the

management has resorted to anti-worker and anti-union activities in a pre-planned manner, leadingto the closure of the factory yesterday, Singh said in a statement.

Wednesdays violence left at least 100 company officials, including Japanese executives, injured.

Vishal Sehgal, a doctor at Artemis Hospital in Gurgaon, said most of the officials admitted had head

injuries and broken arms.

Loading video

The clash assumed diplomatic overtones, with the Japanese embassy issuing a statement in which

it condemned the violence.

The embassy of Japan strongly deplores the loss of life...caused by the sabotage perpetrated by a

group of workers at the Manesar plant...and condemns the violence and barbarism, it said. It called

on the state of Haryana, where Maruti is based, to punish the guilty and enforce law and order. We

expect that the Manesar plant will resume its operations and normalcy will be recovered at the

earliest.
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21/132

Maruti has plants in Gurgaon and nearby Manesar. The Gurgaon plant is functioning normally, the

company said.

The company said the violence didnt stem from an industrialrelations dispute over wages or

working conditions, but was orchestrated mob violence at a time when operations had been normal

over the past many months.

The Gurgaon police have formed a special investigative team of six officers under assistant

commissioner of police Ranbir Tomar. The police have arrested 88 workers under various penal

codes, including attempt to murder and assault on government servants.

We have deployed 1,200 police personnel at the plant and formed a special investigative team to

investigate the matter, said Maheshwar Dayal, deputy commissioner of police, Gurgaon.

Deepinder Singh Hooda, a member of Parliament from Rohtak in Haryana and son of chief minister

Bhupinder Singh Hooda, said there needed to be a review of labour laws in the overall context ofsuch incidents.

Whatever happened is unfortunate and I hope the concerned authorities will take the required

action and the guilty (are) punished, he said. Labour is a state subject.

The violence is unlikely to have been premeditated and could have just been be guided by a herd

mentality, said Rajesh Chakrabarti, executive director at the Bharti Institute of Public Policy and a

clinical associate professor of public policy at the Indian School of Business, Hyderabad.

The union has said the violence stemmed from an altercation between a worker and a supervisor.

A senior company official said on condition of anonymity that the situation had been building up for

the past 8-10 days, with several instances of worker hostility. Cases of manhandling and workers

spitting on supervisors faces were common, said this official. We also approached the police.

An undercurrent of tension seems to have flared up on Wednesday, said Mahantesh Sabarad,

senior vice-president, equity and research, Fortune Equity Brokers (India) Ltd. It tells us that last

years events are still fresh in workers minds and they are unhappy with the last years decisions.

Late last month, union leaders reiterated that demands agreed to by the company in 2011 had not

been met. Workers had wanted company transport to and from their homes, better workingconditions, regularization of leave, and higher wages.

Not much has improved barring additional transport facilities to areas like Rewari and Jhajjar,

Sarabjeet Singh, general secretary of the Manesar plant union, said in the June interview.

Sandeep Dhillon, the unions chief patron, said at the time, They still cut our salaries if we take more

than four days leave in a month.


22/132

Dhillon, Sarabjeet Singh and Rammehar Singh, the unions president, were not reachable on

Thursday.

Pravat Chaturvedi, a former labour secretary, said the Maruti management could have handled the

situation better. He blamed the incident on the arrogance of the management.

Even last year, when there was a settlement, I had said this is not the right way to deal with these

issues, Chaturvedi said. I had also said that the company will suffer in the future. Look at what has

happened.

Mintreported on 23 April that the union had sent a notice asking for a doubling of salary and

enhanced transport facilities, among other demands.

A permanent worker gets Rs17,000 a month, while a casual worker gets Rs7,000. The plant has

around 3,000 workers, of whom 900 are permanent.

The Economic Times newspaper reported on 20 June that the Haryana labour department had

initiated proceedings against Maruti executives for allegedly violating last years agreement with

workers.

Maruti Suzuki had committed in that accord to form grievance redressal and labour welfare

committees at its Manesar plant. These have not been set up and wage raises are still under

negotiation.

Marutis production last year was disrupted by the industrial action at Manesar, which caused a

revenue loss of Rs2,500 crore.

The strike was called off following a tripartite agreement involving the management, workers and the

state government of Haryana. It later emerged that 30 workers, who had been the strikes main

leaders, were paid by the management to quit the company. The workers received a combined

Rs4.2-4.8 crore,Mintreported on 8 November.

Maruti said the company is still assessing the damage to property and facilities. What is clear is that

the office facilities have been burnt beyond repair, as have the main gate, security office and the fire

safety section, the company said.

Rammehar Singh in turn said some of this was done by persons hired by the company.

The bouncers, who are antisocial elements on hire, also destroyed company property and set fire to

a portion of the factory, he said. The gates were later opened to oust the workers and enforce a

lockout by the company.

Sabarad of Fortune Equity Brokers noted that the violence has taken place as Maruti recovers from

last years losses.


23/132

This incident could do permanent damage to their market share because it has happened at a plant

where capacity was ramped up significantly and manufactures popular models, he said. Even if we

assume the company takes stern action againts errant workers, that mistrust between the

management and workers will be there for a long time. Its worrisome for investors

Maruti Suzuki shares fell 8.74% to close at Rs.1,117.35 on BSE on Thursday, while the benchmark

Sensex rose 0.55%.

Surabhi Agarwal, Liz Mathew, Prashant Nanda and Elizabeth Roche in New Delhi, and Shally Seth

in Mumbai contributed to this story.

[email protected]

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The Real Story Behind the Industrial Dispute in Maruti Factory That Turned Violent

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