It is now a familiar story which hits the headlines with amazing regularity-labour unrest at Maruti Suzuki manesar plant, plant forced to shut down and thus incurring massive production loss with each passing day. But what is the root cause of this reoccurring trouble? What started as a minor scuffle over a suspension of a technician, took a political and an ugly turn claiming a life of an HR executive and burning down of an office at the plant. Was this a case of politicized union, mismanagement of the company and its contract labours or is it linked to something deeper as in our archaic labour laws?
History is testimony to the fact that the relation between the management and the employee was not always this sour, the opposite infact but somehow has deteriorated over the years.
Maruti Udyog Ltd.(MUL) is one of India’s leading automobile manufacture,a market leader in the car segment, both in terms of vehical sold and also revenue earned. It was established inFebruary 1981, by Sanjay Ghandhi, younger son of then Prime Minister.It was then taken over by the Government Of India in Feb’1982
In October of the year 1983,Maruti entered into the collaboration with Suzuki Motors,by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. The commercial production and sales began by the end of 1983. The introduction of automobile industry.In Late 1990’s the company had serious differences with Govt. over appointment of company’s managing director. Suzuki referred the case for International arbitration and finally withdraws the case after an amicable settlement was India.
Employee Relation
For most of its history, Maruti Udyog had relatively few problems with its labour force .The company trusts its employees to a greater extent and the employees in turn respond by being totally devoted to the company. Both the managers and workers of Maruti wore the same uniform and