There has now been an announcement that the new Maruti Swift hatchback would be manufactured both at the company’s Gurgaon and Manesar plants. The new Swift hatchback will be manufactured at Gurgaon due to the fact that Maruti is facing labor problems at their Manesar plant and production is hampered. Long waiting lists and disturbance in new bookings of the Swift has compelled Maruti Suzuki to take this decision.
A Maruti Suzuki India Limited spokesperson said that the unit at Manesar was working at less capacity and this made it necessary to take a quick decision to help the company raise production volumes. An upgrade of the older Swift model came about in August this year and has already garnered 50000+ orders which are yet to be cleared. The waiting period is now extended due to ongoing labor problems at the Manesar plant, and this is resulting in increased losses for Maruti Suzuki.
The Manesar unit which normally produces over 900 to 1000 cars per day rolled out 225 vehicles this Tuesday. Besides Swift, production of A-Star and SX4 has also been affected. Labor problems have come back to haunt Maruti Suzuki Ltd when the company asked workers to sign a good conduct bond. The third such dispute in the last three months, the company is yet again enduring labor unrest at their plant at Manesar in Haryana. Out of 1,200 cars produced per day, only 200 vehicles are being rolled on an average all this week due to worker disputes.
Problems at shop floor levels are seeing engineers and frontline management supervising and checking quality controls and testing. Workers continue with their agitation and management have laid down strict conditions that they will not be allowed to resume work unless a ‘good conduct’ pact is signed so as to safeguard against future sabotage, as well as, go slow tactics.
The company also took action by dismissing 26 workers and 17 other hands. Rising tensions have been plaguing the company for some months now and problems were noted during quality checks when doors were falling off and there were dents in car bodies. MSIL’s policy of not giving recognition to the Manesar plant labor union stirred the unrest among workers leading to a 13 % reduction in sales. Maruti Suzuki officials will be in Gujarat today to discuss the possibility of a new 1000 acre manufacturing plant in the state.