Violent clashes at Maruti Manesar plant; production shut down

As the Indian auto market reels in downturn, a shocking incident at Maruti Suzuki's turbulent Manesar plant yesterday caught the industry’s attention.

As of this morning, one person has been reported killed and about 85 others injured in violent clashes between the workers and managers at the plant. This, after an argument between a worker and a managerial staff member took an ugly turn yesterday. The plant, which produces almost 2,000 units daily, was shut down last night and it will remain closed today.

What happened?

The Maruti Suzuki Workers' Union (MSWU) and the plant managers have both come out with their versions of how yesterday's incidents unfolded. According to the Union representatives, the trouble started when a managerial staff member made “casteist” remarks against a worker who responded violently. The worker was then suspended and it irked the Union members who protested against the management.

Meanwhile, the management claims that they were not allowed to take disciplinary actions against the involved worker. The protesting workers instead turned violent, stormed the offices and held many executives and managers hostage. In a statement, Maruti accused the workers of setting ablaze five locations in the plant, which killed one person, who is still unidentified.

Deja Vu

Last year there were three separate instances of labour unrest at the Manesar plant, which accounts for more than 30 per cent of Maruti’s production capacity. The conflict began after Maruti did not recognise their independent labour union. After many negotiations, including intervention by the Haryana government, a resolution was reached and the MSWU was created.

However the company had incurred massive damages due to the unrest. In the 59 days of strike that lasted across five months, the company endured production losses of over 80,000 cars. Financial losses for FY 2011 were estimated at Rs 2,500 crore. After yesterday's events, Maruti will be hoping for a resolution soon to avoid similar losses.

The Manesar plant has a production capacity of 5, 50,000 units annually and produces Maruti’s popular Swift hatchback and Dzire models.

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