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Old 5th June 2011, 20:10   #16
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Default Re: Workers' stir at Maruti plant, production hit

Bad news, labour strikes could result in increase in labour cost.

End result MSIL cars to cost more. First of all the Swift Vdi is too expensive at 6.5lakh OTR BLR.
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Old 5th June 2011, 20:58   #17
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Default Re: Workers' stir at Maruti plant, production hit

That brings back memories of strike which happened in 2000. I had just started my career in Gugraon around that time and on my way to office I used pass by Maruti plant. Strike lasted many days but management took a very tough stand and finally it ended on management's terms. During and after stirke, many Maruti employees started driving taxis to make ends meet. That is the reason, for 10yrs there was no significant labour unrest in Maruti.

Talking about current scenario, I don't think this strike will last long. Strike is only by a section of workers and is not supported by whole union which is on good terms with management. Further current government in Haryana is also very much pro industry (or rather I would say pro industrialists) and normally doesn't allow much space to unions. Remember few year back around 500 striking employees of Honda (Motorcyles and scooters) were surrounded by police and beaten black and blue in full media presence (of course that was after employees attacked a police officer). Apart from few trasnfer orders no other action was taken against police.
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Old 5th June 2011, 22:34   #18
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Default Re: Workers' stir at Maruti plant, production hit

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Originally Posted by Nash24 View Post
Bad news, labour strikes could result in increase in labour cost.OTR BLR.
Why would it result in increase in labor cost? The strike is not for increasing the salary, its rather about having different unions for two different plants or so.

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Originally Posted by abhi413 View Post
Maruti's maintenance Shutdown is not due before june end. And to emphasize that their available inventory is not enough, their Manesar and Gurgaon plants will go on shutdown on separate weeks to minimize production loss.
I would say make the max out of this and shut down the company for maintenance. In the mean time, work out the labor issues. Why would you run the company at half its capacity now and then later shut down for maintenance? Doesn't make sense to me.
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Old 6th June 2011, 13:04   #19
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Default Re: Workers' stir at Maruti plant, production hit

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Originally Posted by kamboj View Post
That brings back memories of strike which happened in 2000. I had just started my career in Gugraon around that time and on my way to office I used pass by Maruti plant. Strike lasted many days but management took a very tough stand and finally it ended on management's terms. During and after stirke, many Maruti employees started driving taxis to make ends meet. That is the reason, for 10yrs there was no significant labour unrest in Maruti.

Talking about current scenario, I don't think this strike will last long. Strike is only by a section of workers and is not supported by whole union which is on good terms with management. Further current government in Haryana is also very much pro industry (or rather I would say pro industrialists) and normally doesn't allow much space to unions. Remember few year back around 500 striking employees of Honda (Motorcyles and scooters) were surrounded by police and beaten black and blue in full media presence (of course that was after employees attacked a police officer). Apart from few trasnfer orders no other action was taken against police.

The strike may last long if the management decides that given the current scenario of low sales it doesn't need much of a production anyway and takes a very tough stance - Maruti will actually save money this way (no work no pay)
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Old 6th June 2011, 13:21   #20
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Smile Re: Workers' stir at Maruti plant, production hit

Agreed that the strike does not affect Maruti's share in the market but this definetly would in some way affect the deliveries. Was this move anticipated by the management since one of my colleagues who had gone to book an Alto was told that the deliveries would be delayed and this was last week.
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Old 6th June 2011, 14:22   #21
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Default Re: Workers' stir at Maruti plant, production hit

AFAIK this is at the Manesar plant where Diesel engines are Manufactured. Not a good news for those waiting for next gen Swift or those awaiting delivery of their cars.
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Old 6th June 2011, 16:29   #22
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Default Re: Workers' stir at Maruti plant, production hit

Meanwhile please note that Toyota has already resumed full scale production 2 weeks+ back. Any production hampered at MSIL Manesar directly affects all their diesel cars most of which still continue to command steep waiting periods.

CNBC news reader was quoting that inventories have piled up for one and half months so the strike may not make a major difference except for diesel vehicles. It is good to see Toyota will be in full supplies.
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Old 6th June 2011, 20:24   #23
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Default Re: Workers' stir at Maruti plant, production hit

Update: Management and workers are still negotiating and production loss today (Monday, June 6) was around 1,200 units. So, a total of ~1,800 units since Saturday.

It seems that MSIL is taking a strong stance - has served termination notices to 11 workers.

Doesn't sound good. There are ~2,000 shop-floor employees involved.

Background: Striking workers are demanding the recognition of a new union Maruti Suzuki Employees Union (MSEU) formed by those working at the Manesar plant, besides retaining contract labourers for the two upcoming new units inside the complex.

Sources: The Hindu; Economic Times

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Originally Posted by Bluengel180 View Post

...has around 2,000 employees, rolls out 3,500 cars a year.
Doesn't seem right. AFAIK, the Manesar plant rolls out ~1,000 cars a day.
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Old 8th June 2011, 21:05   #24
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Default Re: Workers' stir at Maruti plant, production hit

The strike has entered the fifth day today (June 8), resulting in a production loss of about 3000 units until Tuesday and the value of the loss is estimated to be around Rs. 1.5 billion.

Suppliers have shut down their production units as inventories have stockpiled.

The waiting period for the Swift and Dzire is expected to increase.

Source: NDTV, ET
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Old 8th June 2011, 22:33   #25
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Default Re: Strikes in Indian Automobile Companies

The newer Maruti plant at Manesar is suffering a production cut because of a strike that has started there since last weekend(Saturday 4th June) .This plant manufactures the A Star, Swift,DZire and the SX4. These are the higher end MSIL models.The Chairman Mr R.C. Bhargava now says that the sales may be hit if the strike continues.The company is already beset with long waiting lists for some of its diesel models.While the Swift and DZire diesel variants have waiting periods of 3-4 months, the SX4 diesel has a one and a half month waiting time. The A Star is a favourite for the export market, which is likely to be impacted.
Yesterday was the fourth day and the production loss was estimated at 3000 units.The company has sacked 11 employees (including 8 office bearers of an unrecognised union) which has now got the nod from the lady Haryana Labour Commissioner.
The plant rolls out 1200 units per day during normal times.
On June 4 about 200 workers struck work from the second shift.There is no sign of an immediate breakthrough.The workers are demanding the recognition of a new union "Maruti Suzuki Employees Union" along with retention of casual labourers.
At present there is one union "Maruti Udyog Kamgar Union" which is mainly dominated by the workers from its Gurgaon facility.The Manesar workers say their issues are different from those of the Gurgaon plant.
Truly so, because they make the premium and mega models and their problems may be of a mega scale and at a premium.
The industrial belt around Gurgaon-Manesar is reeling under such labour disputes. The Honda (HMSIL) strike ended up in police firing.
MSIL is planning expansion of its capacity but the newer plants are being located in Rajasthan.

Last edited by anjan_c2007 : 8th June 2011 at 22:43.
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Old 9th June 2011, 01:59   #26
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Default Re: Workers' stir at Maruti plant, production hit

Seems that the prayers of its rivals are listened by the God or is It a silence before the arrival of storm(New Swift). Only time will tell this.
But a loss is always a loss whether Maruti management admits it or not, even their factory Inventories will dry up soon(as its having 5 day stock only).
Might be Maruti management is having in their minds the idea to Recover these day losses from the 10 day summer vacations of MSIL workers.
But all in all its a Golden period for its dealers to earn premium from their stocked Diesel Suzukis.

Quote:
Originally Posted by Gooney View Post
The waiting period for the Swift and Dzire is expected to increase.
Yes its affected & Swift diesel's waiting period is already hovering at around 5-6 months while Dzire is following it with 4-5month waiting period.
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Old 9th June 2011, 11:57   #27
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Default Re: Workers' stir at Maruti plant, production hit

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Originally Posted by CRtorquefan View Post
Seems that the prayers of its rivals are listened by the God or .....
Or, could it have been instigated by some rival's moles in MUL. Well, I can only think of one manufacturer. It's the same one who gets lot of patronage from auto magazines.
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Old 10th June 2011, 17:27   #28
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Default Re: Workers' stir at Maruti plant, production hit

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Originally Posted by kamboj View Post
Talking about current scenario, I don't think this strike will last long. Strike is only by a section of workers and is not supported by whole union which is on good terms with management. Further current government in Haryana is also very much pro industry (or rather I would say pro industrialists) and normally doesn't allow much space to unions.
Quoting my own post.

[FONT=Tms Rmn]Like I said, Haryana Govt has banned the strike.

[/FONT][FONT=Tms Rmn][COLOR=#810081]http://timesofindia.indiatimes.com/india/Haryana-bans-strike-at-Marutis-Manesar-plant/articleshow/8801436.cms[/COLOR][/FONT]
[FONT=Tms Rmn]
Of all MNCs, Maruti management will get certainly get special treatment from Haryana Govt. This is not due to its investment in Gurgaon/Manesar, rather its proposed investment for R&D center in Chief Minister's home town Rohtak.

Lets see how things unfold now.
[/FONT]
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Old 11th June 2011, 17:39   #29
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Default Re: Strikes in Indian Automobile Companies

The strike has taken a turn for the worse now on its 8th day. Other auto related industry labour unions in the Gurgaon-Manesar belt like Hero Honda,Honda Motorcycle and Scooters India Ltd, Rico Auto (ancillary supplier) and the Sona Group (they make steering assemblies)pledged their solidarity and have reportedly sat with the Maruti workers staging dharna.
Maruti has already lost a production of 5000 cars valued at about Rs 200 crores.
The management of MSIL and the Haryana government are on one side, while the labour unions are on the other. Both are now stubborn and are refusing to budge.
Sad plight of the once very productive, great auto hub of India.
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Old 15th June 2011, 19:28   #30
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Default Re: Strikes in Indian Automobile Companies

The strike continued on its 12th day today. The production loss is a whopping 12100 cars! The total monetary loss is pegged at Rs 340 crore.
The AITUC has said that the strike could soon spread to other units in the Gurgaon- Manesar-Dharuhera belt.
The demand is reinstatement of the 11 dismissed workers and green signal for the formation of a new Union for the MSIL Manesar plant.
The Haryana Labour Commission does not want any new labour union to come up. While the MSIL's stance is that they could permit a new union, but with no outsiders as office bearers.
Meanwhile MSIL was also toying with the idea of shifting a part of production of the models made in Manesar and resume manufacture at its other facility. Cannot really fathom how that will come by?
The impasse is quite a blot to the largely peaceful going MSIL has been having all these years. Meanwhile all the plants of MSIL will be shut for production w.e.f. 20-25 June 2011, for the annual maintenance ritual.
Way back in 1984, when they started production at Gurgaon, the Japanese management philosophy and culture was a favourite for the media to write about, discuss and debate. Therein, all workers right from the lowest rung to the Chairman and MD would wear the same grey uniform and go to the same canteen. The Managers and workers would be free to discuss issues. Any worker finding fault anywhere in the assembly line had the power to ring the alarm bell and the production would stop. The concept of “Ringiseido” provides the chance for equal ranking managers or employees in the company to partake in an individual’s idea.
Have these management techniques not been effective in our set-up or have these not clicked with our mindset? A lot of questions emerge as to why the giant has fallen on bad times?

Last edited by anjan_c2007 : 15th June 2011 at 19:35.
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