Business Today

Parts paucity pushes auto major to take the hard decision

The labour unrest at the Manesar plant of Maruti Suzuki India Ltd  spread to the units supplying components to the auto major forcing the company to announce closure of both the Manesar and Gurgaon plants due to unavailability of parts.

Mail Today Bureau   New Delhi     Last Updated: September 16, 2011  | 10:27 IST

The labour unrest at the Manesar plant of Maruti Suzuki India Ltd (MSIL) on Thursday spread to the units supplying components to the auto major forcing the company to announce closure of both the Manesar and Gurgaon plants due to unavailability of parts.

"Following the strike at its vendor, Suzuki Powertrain India Ltd, supply of certain critical components to Maruti Suzuki's facilities has been disrupted. These components include diesel engines and transmissions for certain petrol engine models," MSIL said on Thursday. Suzuki Powertrain, 70 per cent owned by Suzuki, supplies around three lakh diesel engines a year to the car maker from its India plant.

"As a result, Maruti Suzuki's plants in Gurgaon and Manesar will not operate on Friday, September 16. The following day, September 17, is a designated holiday on account of Vishwakarma Puja," MSIL said.

Maruti unrest turns violent, 5 injured

The production at Maruti's Manesar factory, where it makes the Swift, has been severely hit since workers walked out on August 29 after Maruti demanded they sign a good conduct bond, claiming some of employees had engaged in sabotage.

 CHOKING THE SUPPLY

  • Labour unrest at the Manesar plant spreads to the units supplying components
  • Supply of diesel engines & transmissions for some petrol engine models disrupted
  • Workers at Manesar refuse to sign good conduct bond saying its an unjust demand
  • Maruti has started hiring new staff to bring the factory production closer to normal
  • On Wednesday workers at Suzuki Powertrain India, Suzuki Castings and Suzuki Motorcycle India in Gurgaon-Manesar belt went on strike
  • On Thursday, striking workers attacked a group of supervisors of Maruti Suzuki's Manesar plant
  • About 11 supervisors were reported to have been injured
  • Haryana govt has stepped in and said they will end the standoff on Friday
However, a majority of the workers refused to sign the agreement terming it an unjust demand by the company. This time the management was also adamant and vowed not to compromise with the workers who were refusing to sign the good conduct bond. Osamu Suzuki, chairman of Suzuki, had said last week that indiscipline would not be tolerated.

Instead the firm started steadily hiring new staff to bring production closer to normal. However, on Wednesday labour unrest spread to three factories of two different firms of Suzuki in India, with workers going on strike in support of their colleagues at MSIL. Workers at Suzuki Powertrain India Ltd, Suzuki Castings and Suzuki Motorcycle (I) Pvt Ltd located in the Gurgaon-Manesar industrial belt went on strike in the afternoon.

On Thursday, the strike took a violent turn when striking workers attacked a group of supervisors of Maruti Suzuki's Manesar plant. As many as 11 supervisors of Maruti Suzuki were reported to have been injured in the attack. The company condemned the attack on its supervisors, saying, "This was another desperate action by the striking workers, using violence and fear."

"By such violent acts, the striking workers have polluted the environment in Manesar. Such actions are damaging for the industrial climate in the Manesar belt. This will destroy jobs and prosperity in the region," it said. Meanwhile, the Haryana government stepped in to bring the situation under control and said they will end the standoff between the management and the workers on Friday.

"I am leaving for Gurgaon today to meet workers and management to resolve this issue and I am hoping that the stand-off between the parties will come to an end either today (Thursday) or tomorrow (Friday)," Haryana minister for labour and employment Shiv Charan Lal Sharma said.

Courtesy: Mail Today 

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