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Second Manesar unit to start operations early due to strike

Second Manesar unit to start operations early due to strike

To keep its production in line with its expectations and revenue targets Maruti Suzuki has fast-tracked construction of another plant in Manesar that was otherwise planned to begin operations late September.

To keep its production in line with its expectations and revenue targets Maruti Suzuki has fast-tracked construction of another plant in Manesar that was otherwise planned to begin operations late September. The new plant, set up with an investment of Rs 1,700 crore, expected to produce 30 to 40 per cent more units than the existing plant, is likely to start production within the next two days.

The urgency in setting up of the new plant comes in the wake of the standoff between the workers' union and authorities due to which Maruti's existing plant had to halt production of cars for two days. The plant had been the centre of many controversies since June when a 13-day strike by its employees had crippled the production of cars at the plant.

In the wake of demonstrations by various employee unions of automobile companies the standoff between the employees and the senior level officials does not seem likely to end soon.

READ: Fresh labour troubles at Manesar make Maruti scout for fresh hands

The fresh cause of confrontation between the two parties had started after Maruti said each employee should sign a 'good conduct bond' before entering the plant. According to Maruti officials, the logic behind this measure is to simplify the sacking of staff whom the firm thinks indulged in the sabotage of vehicles produced at the plant in order to cause revenue loss to the company.

Workers refused to sign the bond. They said more workers will join the protest against company. This is not the first time that the company has introduced such a bond. Earlier, facing a similar situation at its Gurgaon plant, Maruti had invoked a similar measure there.

By mandating its employees to sign this bond, Maruti Suzuki has made the Manesar plant the New Maruti plant to open in 2 days second in India to have such policies, the first being the Gurgaon plant.

To provide manpower for the two plants, one marred by strike and the other starting afresh, Maruti is planning to bring in a batch of 180 skilled employees from ITI. Early on Wednesday, the firm had brought in 120 ITI trained workers to its Manesar facility, taking the total workforce to 300. Apart from the workers Maruti has already deployed 50 engineers from the firm's Gurgaon plant and around 290 supervisors to strengthen production at Manesar.

"Since the company is short of manpower at this stage, starting operations at this second plant will be a shot in the arm for the company. In all, the company now has 680 trained and experienced people available for production. All these people are being deployed to start and scale up production at the plant," said a Maruti Suzuki spokesperson.

The company will continue the recruitment drive for trained workers in order to normalise production in coming days, the spokesperson added. Production had come to a halt on Monday morning after the firm suspended and dismissed 21 employees on charges of sabotaging production and deliberately causing quality problems in the vehicles manufactured at the plant.

Courtesy: Mail Today 

Published on: Sep 02, 2011, 8:26 AM IST
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