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Study on the Manesar plan incident of Maruti Suzuki.

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by

Aisha Khandelwal

on 19 March 2014

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Transcript of Study on the Manesar plan incident of Maruti Suzuki.

Study on the Manesar plan incident of Maruti Suzuki.
Timeline of the Events
Why it All Started?
The plant workers wanted to register a new union-the maruti Suzuki Employees Union ( MSEU)- and had already applied for registration, something the management was supposed to.
Worker's Demand:
A five-fold increase in basic salary
A monthly allowance for conveyance 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 more cheaper home loans for those who want to build their own houses.
In addition to this compensation and normal weekend, the union demanded the current four paid weeks of vacation be increased to 7 weeks.
Labour's Side
There were around 3500 to 4000 workers employed in the factory but their status differed significantly.
Permanent workers at Manesar compared their wages to the wages of workers at nearby HONDA and voiced anger about the fact that they earned only half as much.
The production capacity of maruti was increasing but their salaries weren't.
DEMAND- New Union!
Management Side
Management was of the opinion that a new union will bring a third party-political party.
Management argued that workers are not putting up any clear and reasonable demand.
There was a lack of discipline among workers.
management wanted workers to accept and sign the "GOOD CONDUCT BOND"
Workers' aspirations soared beyond a decent wage. People in villages off the NH-8 highway in Gurgaon became rich overnight by selling their agricultural land to builders. this drove the aspiration level of the workers. They wanted a quick rise in wages, which caused a mismatch between the workers' aspirations and the management's responses.
Maruti's Solution
In response to the workers request for transport, the company agreed to provide bus services in line with shift timings.
To address the concerns of the Manesar workers, the company agreed to set up a 'grievance redressal committee'. The committee will have representatives from the management and the workers.
A labour office from the state government will be a permanent invitee to it and its proceedings.
Maruti Suzuki also agreed to the formation of a 'labour welfare committee' to promote good relations between the management and the workers. The committee will compare members of the management and the workers.
What Went Wrong?
Our Solution To the Problem.
Company Introduction
Maruti Suzuki India Limited, is a subsidiary company of Japenese automker Suzuki Motor Corportion.
Has two manufacturing facilities located in Gurgaon and Manesar.
It has a market share of 44.9% of the Indian passenger car Market as of March 2011.
1st October,2012 Maruti Suzuki India Limited sold a total of 93,988 units in September 2012.
Key People: Shinzo Nakanishi-CEO&MD, RC Bhargava- Chairman
JUNE 4,2011 : Workers went on strike at the plant
JUNE 10, 2011 : Haryana bans strike at the plant.
JUNE 13,2011 : 65 unions joined strike at Maruti's Manesar plant.
SEP 13,2011 : Maruti starts recruiting new workers
SEP 15, 2011 : Violence at Maruti's manesar PLant, 5 injured.
OCT 1,2011 : Labour unrest at Maruti's manesar plant ends, sales decline of 20.8% in September.
OCT 2,2011 : Settlement reached all normal production started.
OCT 7,2011 : Fresh Maruti Suzuki workers want suspended staff to be taken back.
June 16, 2011 : Strike at Manesar plant called off
JULY 28,2011 : Tool-down strike protecting the suspension of their colleagues
AUG 29,2011: Protest against management's insistence on workers signing a 'good conduct bond"
Unrest Among Employees led to Police Intervention
Identify a credible spokesperson
SIAM President Mr. S. Sandilya, who has condemned the attack, is a possible spokesperson for Maruti’s stance on better internal governance.
2.     Diverting Attention: Position the Haryana’s Government Inaction on Labour  Laws
Demonstrate that the work policies at Maruti Manesar were in accordance with state labour policies, and further, that this is a volatile situation that Indian industry needs to address.
3.     Giving the Media Facts
Identifying and endorsing 3rd party spokespersons to speak, on prominent news channels and national reach features media, the rift between management and labourers on the demands being negotiated, and the causes of the attack.
4.     Engage Social Media
Maruti Suzuki doesn’t have a Verified Twitter account; at the time this article was written, their only Twitter presence is a constant flow of tweets discussing the event.
Copy paste is usually not a good social media strategy
However, even as fans are posting their support for the company, Maruti fails to see this opportunity. On the other hand, supporters of the Maruti workers already have an active Facebook group.
5.     Rebuild Maruti’s India-Connect
Mentions of increasingly Japanese management at Maruti was raised during reportage. A campaign that recalls the impact Maruti has had on India, bring back Maruti’s traditional association with India will foster unity amongst employees.
6.     Focus on the Bigger Picture
India’s informal workforce is a constantly overworked species; this situation enables Maruti to initiate a CSR campaign of national scale to create national dialogue of awareness on these issues, and position itself as a thought-leader, and a company that learns from its mistakes.

One of the repercussions has been a louder voice amongst unions.


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