Stir on at Maruti's Manesar unit as deadlock persists

The workers' strike at the Manesar plant of Maruti Suzuki India Ltd (MSIL) is set to continue with talks between the company's management and the labour union on Monday remaining inconclusive. About 2,000 workers at the unit have been on strike since June 4 demanding that a new labour union at the Manesar plant - the Maruti Suzuki Employees Union (MSEU) - be recognised.

On Sunday, MSIL had softened its stand and said that it is ready to accept the workers' demand that the new union at the Manesar plant be recognised. The management, which had said that it wants to resolve the matter, had added that it was ready to take back five of the sacked employees. However, the striking workers had said that they would end their agitation only when all the 11 sacked employees are taken back.

The talks between the labour union and the MSIL management remained inconclusive, according to sources, as the MSIL management has refused to take back all the 11 sacked employees.

A senior manager at MSIL, however, told Mail Today, "We are ready to talk but they are trying to pressurise us. We are open to demands that are feasible. We are still hopeful and the talks will continue."

The strike, which entered the tenth day on Monday, has hit production hard . This is all the more so as the company's best-selling models in the A2 segment are produced at the Manesar plant. This has compounded the woes for Maruti Suzuki, which is already struggling against sluggish sales. The firm posted its slowest pace of growth in more than two years in May with just 1.9 per cent sales growth compared to 28 per cent in the yearago period.

The company has so far faced a production loss of 8,400 units at its Manesar plant in Haryana , which translates into an estimated loss of Rs 280 crore. The disruption in production is resulting in an average daily revenue loss of Rs 40 crore for the company. "The sector is already in bad shape because of the continued rise in input costs and rising inflation. If the strike is prolonged, it will create a major dent in Maruti's profitability," said Kishor Ostwal, chairman of brokerage CNI Research.

Meanwhile, the labour union has said that it will continue the two-hour tool-down protest with workers in many other units in the area, including Hero Honda, Honda Motorcycle and Scooter India and Rico Auto, joining in to extend their support to the striking union.

This decision of workers in various companies to extend support to the Manesar labour union has worried the managements of other auto firms. Meanwhile, the All India Trade Union Congress (AITUC) has said that workers in the Gurgaon-Manesar industrial belt are going to hold two-hour tooldown strike in about 60-65 factories in the area on Tuesday to support the MSEU strike.

The AITUC has played a key role in mobilising support for the strike from unions of other auto companies, including Hero Honda, Honda Motorcycle and Scooter India.  

Courtesy: Mail Today