Maruti Suzuki is facing disruption in production at its plant in the northern state of Haryana due to an industrial relations dispute that has erupted over labour union recognition.
Some 2,500 workers went on strike at the plant at the weekend demanding the recognition of a new union, Maruti Suzuki Employees Union.
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The dispute at the Manesar plant in Haryana appeared to intensify on Monday (June 6) when the company terminated the services of eleven employees, who it said were inciting other workers.
Talks between management and workers were reportedly taking place on Monday.
Chairman R C Bhargava told the Business Standard newspaper that the strike was illegal and the company had imposed no work no pay principle from today. “The strike is illegal. The workers had not gives any notice to the management. Also, those who have applied for registration of a new union, which is separate from that of the Gurgaon plant, did not receive permission or were registered.”
V L Sachdeva, secretary AITUC (All India Trade Union Congress), which is backing the strike said, in the Business Standard: “The new union applied for a registration to the registrar of trade unions on Friday. The next day, Maruti’s management asked its workers to sign an undertaking that they will not be a part of the new union. We do not want the management interfering in our matters. We have met the labour minister and the labour commissioner. There is every likelihood that agitation will increase if demands are not met.”
The Business Standard noted that the Manesar plant rolls out over 1,200 to 1,300 cars every day which include the Swift, DZire SX4 and the A-Star and the Gurgaon plant over 4,000 cars per day.
The strike has already impacted production with a loss of under 2,000 cars in the last three days.
At present, the company has one workers’ union that is recognized by he management – Maruti Udyog Kamgar Union.
