Maruti Case Study

Labor Unrest in Maruti Suzuki India Ltd

Name of student: Sushant Gupta

Enrolment No.:12020241035

Division & Batch: “IB-A”

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Title of the project: Labor Unrest in Maruti Suzuki India Limited.

Abstract (around 100 words): Since its founding in 1983, Maruti Udyog Limited has experienced many problems with its labor force. The Indian labor it hired hesitantly accepted Japanese work culture and the modern manufacturing processes. 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. Labor 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.

Background: The report that I shall, present before all of you is concerned with one of the conglomerates of the Indian industry and a name to reckon with, Maruti Suzuki India Ltd (MSIL). This report shall attempt to showcase exactly what transpired between the labor and the management of MSIL's plant at Manesar, Haryana which mainly produces the company's largest selling vehicle in terms of number, the Swift, led to 3 different instances of labor unrest and suspension of production at the plant causing a total production loss of about 83,000 units in 2011 alone. These instances are enumerated as follows:

1. In June 2011, a 13-day strike brought production to a standstill at the plant.

2. It was followed by another standoff between the management and the workers on August 29 and lasted for 33 days.

3. In October, the company again saw its workers going on a 14-day strike that ended after the signing of a tripartite agreement between the management, workers and Haryana government representatives....