Maruti Suzuki said it has resumed limited operations at its strike-bound Manesar plant in Northern India with the help of around 150 workers who are not taking part in the stoppage.
The company said it has also agreed to start talks to settle a labour row that has cost the company hundreds of millions of dollars. Underlying the long-running dispute at Manesar is Maruti’s refusal to recognise the strikers’ union.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
However, no fully assembled cars have actually started coming off the line with only the welding shop currently operational. The Manesar plant has been dogged by labour unrest since June resulting in some US$356.5m worth of lost output.
The striking workers ended an eight-day sit-in at the plant late Friday after a court order, but maintained a picket outside the factory.
The most recent labour problems followed a 33-day lockout imposed by Maruti after it accused workers of sabotaging output – charges they denied. The union says Maruti reneged on commitments to reinstate a number of contract workers and 44 suspended staff, and deducted more wages than agreed for the lockout period.
Output at Maruti’s main plant in Gurgaon, outside New Delhi, also resumed Monday after being halted late last week by a parts shortage caused by sympathy strikes at other Suzuki-owned factories. But only the Eeco, which does not rely on parts from strike-hit units could be produced. Manesar normally produces around 1,100 cars daily while Gurgaon makes 2,800.
Maruti makes half of the cars sold in India. The company said it expected to begin talks with the strikers today and has blamed the labour unrest and a slowing Indian economy for a 21% drop in September sales. The company also looks set to miss out on the upcoming Hindu festival season when consumers traditionally make expensive purchases such as cars.
