Go Back   Team-BHP > BHP India > The Indian Car Scene


Closed Thread
 
Thread Tools Search this Thread
Old 10th October 2011, 22:41   #136
BHPian
 
SwiftSD's Avatar
 
Join Date: Sep 2011
Location: Kolkata
Posts: 99
Thanked: 48 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

Hope this gets sorted out as soon as possible. The long row that has been going on for some time now would surely have an impact in the long run on MS which for sure would be troubling the management.

From what has been going on, a compromise doesn't seem to be a very viable solutions. There has been a fall in shares by over 20% in 2011 alone so just hope an agreement is reached fast so that production can start over again.
SwiftSD is offline  
Old 10th October 2011, 23:28   #137
BHPian
 
Join Date: Jun 2011
Location: ATL<-->BLR
Posts: 141
Thanked: 36 Times
Default

http://www.dnaindia.com/india/report...-cpi-m_1597236

The issue is now "officially" politicized. The currently 'free' communists seems to have moved on from Singur to Manesar. Mr. Modi must be laughing all the way to the bank.

This strike has come at a worst time for both Maruti and the employees. Maruti loses it's prospective customers and employees lose their salary + diwali bonus.
andromeda is offline  
Old 10th October 2011, 23:33   #138
BHPian
 
Join Date: Mar 2006
Location: Bangalore
Posts: 221
Thanked: 19 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

It seems its going worse,day by day.

MUMBAI: Striking employees of Maruti Suzuki, India's biggest carmaker, have seized control of a factory hit by weeks of labour unrest, the company said on Monday, as a stand-off that has cost the firm over $150 million descended into violence.

Workers attacked managers and supervisors and damaged equipment at the Manesar plant, Maruti said, shutting down production for a third consecutive day as the company battles slowing demand in Asia's third-largest economy.

"The plant is effectively captive in the hands of who are bent upon violence," the company said in a statement, describing the situation at the factory as "grave."

Maruti has said it would not compromise with the workers who began their initial strike on August 29 after refusing to sign a discipline agreement ordered by the company following accusations of workers deliberately sabotaging car production.

The Maruti Suzuki Employees Union (MSEU), the body co-ordinating the unrest that is not recognised by the company, was not reachable for comment on Monday. But the union has repeatedly denied sabotaging production.

"What we are demanding is that the casual workers should be taken back," MSEU executive member Sushil Kumar said on Saturday, referring to hundreds of part-time workers fired by Maruti during the unrest.

Maruti, 54.2-per cent owned by Japan's Suzuki Motor, said 1,500 workers were inside the factory on Monday. The plant produces about 1,000 vehicles a day and the unrest has caused a production loss of 2,600 cars since Friday afternoon.

Supporting strikes by workers at other Suzuki-owned plants in India that supply parts to Maruti's second car factory have resulted in a total loss of production of about $22 million.

Maruti announced an agreement with striking workers last week to end a month-long strike that has already cost the company Rs 6.6 billion ($134 million) in lost output and contributed to a 21-per cent slump in September sales.

The carmaker's total losses due to labour unrest this year stand at close to $250 million, following a 13-day strike by 800 workers in June at Manesar that crippled production and caused more than $90 million in lost output.

The continued unrest at Manesar comes as carmakers in the country have reported a 1.8-per cent drop in September sales, as rising interest rates and vehicle costs hurt demand in the world's second-fastest growing major auto market after China.

"The company cannot throw out mobs of people," a Maruti spokesman said. "The action has to come from the police and the authorities."

The strikes at the Manesar plant, which produces the popular Swift and A-Star hatchbacks, have also sparked unrest at Suzuki Powertrain India, which provides engines to Maruti. The unrest had reduced output at the plant to around 65 per cent on Monday.

Gunshots were fired by a labour contractor at a Suzuki motorcycle factory after workers there also downed tools to support the Manesar action, a Maruti spokesman said.

Shares of the carmaker closed down 3.8 per cent at Rs 1,071 ($21.79) on Monday, against a 2.2-per cent rise in sensex.

Maruti shares have fallen nearly 24 per cent in 2011, underperforming a nearly 20-per cent fall in the broader market.
mykal shoemaker is offline  
Old 10th October 2011, 23:39   #139
Senior - BHPian
 
shashank.nk's Avatar
 
Join Date: Jan 2010
Location: Bangalore
Posts: 1,520
Thanked: 732 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

Truly a very sad state of affairs at the plant! As mentioned by someone both the manufacturer and the workers lose out because of this and if the media reports are to be believed the situation is indeed serious.

Hope Maruti finds a solution soon. Wonder how this strike will affect the already long waiting periods for the Swift. Very bad time for the company to have such serious labour issues during the festive season and also when the Swift has such a huge demand!
shashank.nk is offline  
Old 11th October 2011, 08:00   #140
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,041
Thanked: 2,086 Times
Angry Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

This kind of work stoppage has not only affected Maruti's plan but also the auto ancilliary industries which depend a lot on Maruti plants. This is happening at a very wrong time when Maruti was aiming to recover the earlier production losses, I guess the those who have booked the Swifts, the Dzires will be chewing their nails over the prolonged delay. Bad, really bad for Maruti. Hope the issue gets resolved at the earliest but I guess the damage is already done.
ghodlur is offline  
Old 11th October 2011, 08:04   #141
Senior - BHPian
 
KarthikK's Avatar
 
Join Date: Nov 2009
Location: Bangalore
Posts: 1,918
Thanked: 3,495 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

Not very inspiring news to those who booked any of MSIL's cars. The strike just got another shot in the arm with other component manufacturers' workers joining in. Latest report in TOI today morning paints a very grim picture

Workers have taken over plant: Maruti - The Times of India

I am sure many of the swift customers, at least the ones with petrol variant bookings will shift base to Honda/Toyota/Hyundai/Ford now.

Last edited by KarthikK : 11th October 2011 at 08:09. Reason: corrected broken link
KarthikK is offline  
Old 11th October 2011, 08:19   #142
Senior - BHPian
 
Join Date: Dec 2006
Location: NH209
Posts: 1,607
Thanked: 701 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

Hisar elections are on october 13, so government cant provide enough security personal.

But resuming operations under force might make matters worse.

Someone must act quick.
ramzsys is offline  
Old 11th October 2011, 12:17   #143
BHPian
 
Join Date: Dec 2009
Location: |
Posts: 582
Thanked: 215 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

things are getting from Bad to worse now. Nobody is willing to compromise and things are taking ugly turns. workers should not engage in Rioting and firing inside plant if their demands are genuine. This will weaken their case.

I am still not sure why govt is not doing anything to control the situation. HISSAR is just a small district where elections are happening. I hope they have not put whole of haryana police into election duty, still they can Ask for forces from center for election duty.
.sushilkumar is offline  
Old 11th October 2011, 20:05   #144
BHPian
 
Join Date: Jul 2011
Location: Bangalore
Posts: 49
Thanked: 20 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

There is a report by Moneylife which points out to the seriousness of the situation. It seems that even approaching the plant closer than a kilometer is not possible. There is also some background analysis in the report here:
Maruti Suzuki industrial unrest at Manesar: The inside story - Moneylife Personal Finance site and magazine
moinakg is offline   (2) Thanks
Old 11th October 2011, 20:47   #145
Distinguished - BHPian
 
Join Date: May 2005
Location: KL
Posts: 4,680
Thanked: 3,508 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

Only one way out for MSIL now. Hire some Oompa Loompas
Sankar is offline  
Old 11th October 2011, 22:41   #146
BHPian
 
Join Date: Feb 2011
Location: Delhi
Posts: 236
Thanked: 129 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

@moin,

Quote:
<snip>..news just filters in that some local people who tried to deliver food and water were turned back, and that it appears that a bigger group will try to do the same soon.
Tells you much about how this issue is going to be handled.

Not nice at all IMO. Most of the article in pinpointedly accurate and as an outsider in this 'city' I feel like an outsider every day.

Mumbai always felt like home, with welcoming and friendly people. Here they are friendly enough. That's a pretty big difference.

For those a lot less fortunate, the situation is 'now' or 'never'. And at this point in time, it's the 'now' that seems to be the option that they are going for.
cranky is offline  
Old 12th October 2011, 10:00   #147
BHPian
 
Join Date: Dec 2009
Location: |
Posts: 582
Thanked: 215 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

was reading a Article in today's TOI delhi edition. It appears to be more of a HR issues as per them with the Japanese managers being the main culprit as per reporter . Looks like cultural difference is taking it;s toll on MSIL . They have failed to Understand how the the time is Managed in india. Moreover MSIL has gone back on it;s earlier promise of re-installing the 44 sacked workers, add to that they were not allowing the 1200 contractual workers a re- entry into plant . All this triggered fresh strikes . New thing is that now Even the permanent workers has also joined in the strike demanding Better HR policies .

Where as their CEO continues to give statements that this is political problem and has nothing to do with HR policies.

Don't know who is wrong and who is right but those who have booked their cars using their hard earned money must get their cars on time else i fear MSIL might loose bug chunk of customer to rivals .
.sushilkumar is offline  
Old 12th October 2011, 11:22   #148
BHPian
 
abhi413's Avatar
 
Join Date: Mar 2009
Location: Pune
Posts: 214
Thanked: 101 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

Thankfully for Maruti the waiting period of the only other really competent hatch, the Jazz, is just as bad. One hopes the labour troubles are resolved soon for good. Meanwhile Maruti's loss is directly Hyundai's gain.
abhi413 is offline  
Old 12th October 2011, 11:43   #149
BHPian
 
Join Date: Sep 2011
Location: Delhi
Posts: 61
Thanked: 42 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

In this whole episode I find Media's role highly suspicious. They have not tried to get inside and get a fair view from both the parties. They have not tried questioning both the parties with the questions other parties are raising, they have not asked for proofs from them...

Why not Maruti Suzuki leadership comes clear on HR practice allegations with facts? The way state government is observing from corners without taking any action, also tells a tale.

P.S. The one article that seems to have done some justice to journalism is the one shared by moinakg. Read it here.
satishchugh is offline  
Old 12th October 2011, 11:57   #150
Senior - BHPian
 
KarthikK's Avatar
 
Join Date: Nov 2009
Location: Bangalore
Posts: 1,918
Thanked: 3,495 Times
Default Re: MSIL factory strike: Workers deliberately sabotaging the quality of cars.

Quote:
Originally Posted by abhi413 View Post
Thankfully for Maruti the waiting period of the only other really competent hatch, the Jazz, is just as bad. One hopes the labour troubles are resolved soon for good. Meanwhile Maruti's loss is directly Hyundai's gain.
+1. The Jazz also commands 5-6 month waiting periods now. I know 2 colleagues who had booked ZXi(s) now shifting base to Hyundai i20s because it is readily available.

I think the people who booked diesel swift might directly switch to Punto MJD/i20 CRDi and increase its sales, at least those who are getting panicky about the unknown waiting time. It will be interesting to see the october sales figures of Punto, Polo and i20 in particular.

Does anyone have information about bookings being stopped by dealers? I heard, in Bangalore Mandovi and Sagar auto have stopped taking further bookings for Swift altogether, until they see further improvement in the strike situation. Supposedly, the sales rep who took my colleague's booking is contemplating changing the job to a different car brand dealer because he is sick of a 101 customers calling / ranting on his phone everyday

Last edited by KarthikK : 12th October 2011 at 12:02.
KarthikK is offline  
Closed Thread


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
300 workers go on strike at Tata's Sanand factory S2!!! The Indian Car Scene 7 26th February 2016 19:22
Maruti workers to go on strike (again!!) Hunger strike this time nettooran The Indian Car Scene 25 9th November 2012 10:40
General Motors (India) Workers Strike at Halol Plant wildon The Indian Car Scene 14 27th July 2011 17:41
GM Workers go on strike. iraghava The International Automotive Scene 9 27th September 2007 23:26
Ferrari Workers On Strike danlalan The International Automotive Scene 10 16th May 2007 12:00


All times are GMT +5.5. The time now is 22:21.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks