Maruti Suzuki moves towards full production. Delivery of booked vehicles a priority
Labor problems and strikes by workers which have haunted the Maruti Suzuki Manesar and Gurgaon plats have finally been resolved, and the company spokesperson did confirm at the start of the weekend that manufacturing operations would begin at these two units from Saturday.
The company which had been facing tremendous labor problems since end of August 2011 has finally managed to reach an agreement with their workers on Friday. Maruti Suzuki which has 54.2% owned by Suzuki Motor Corp of Japan has suffered tremendous losses due to labor problems and slowdown at the company units. Losses to the tune of $400 million were experienced and this has led to diminished market share, and stock prices as well.
The company spokesperson said that both management and workers have reached a mutual understanding and would go ahead with a resolve to work with cooperation and understanding. He said that the company would now try to keep all problems at bay so that they work together to bring up their market share and ensure benefit for their shareholders.
With the ongoing strike between Maruti Suzuki management and workers finally resolved, production which was at a virtual standstill has been resumed. It was stipulated at the concluding meeting between the two that Maruti Udyog Kamgar Union (MUKU) was not set foot into the new plant at Manesar.
Workers under the Maruti Suzuki Employees Union (MSEU) though unrecognized has opposed MUKU intervention in their new unit as they were only responsible for representing the Gurgaon unit and had no business at the Manesar setup.
Previously MUKU had entered into negotiations between management and labor. Now it was decided to have two separate unions to represent workers of the Manesar unit and Gurgaon unit. This would create a clear demarcation and both unions would have equal representation from management and labor. It is hoped that with this new stipulation there should be a clear cut resolve in the problems being faced to sort out any further disputes between the two.
Chairman Maruti, R. C. Bhargava did say that losses to production to the extent of 60000-65000 vehicles can be estimated. Talks with the Union have resulted in a draft agreement that will help things move on. Maruti did mention that they hoped the plants would return to full production in 3-4 days, and at the moment there are no immediate plans to make up loss but to works towards delivery of booked vehicles.