C Ase Study On Maruti Suzuki Manesar Incident

8244 words - 33 pages

Manesar IncidentMaruti Suzuki India Limited (/marut̪i suzuki/), commonly referred to as Maruti and formerly known as Maruti Udyog Limited, is an automobile manufacturer in India.[8] It is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki.[7] As of November 2012, it had a market share of 37% of the Indian passenger car market.[9] Maruti Suzuki manufactures and sells a complete range of cars from the entry level Alto, to the hatchback Ritz, A-Star, Swift, Wagon R, Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara.[10]The company's headquarters are at No 1, Nelson Mandela Road, New Delhi.[2] In February 2012, the company sold its ten millionth vehicle in India.[11]Industrial relationsSince its founding in 1983, Maruti Udyog Limited experienced problems with its labour force. The Indian labour it 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 the United Front Government and 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.[25 ] [26]Employees used slowdown in October 2000, to press a revision to their incentive-linked pay. In parallel, after elections and a new central government led by NDA 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.[25 ] [27]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.[28 ] [29]Manesar violence July 2012On 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.[30] [31] 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 the company began operations in India in 1983.[32]Since April 2012, the Manesar union had demanded a...

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