Dear Formation of a Workers Union was the reason.

A report in the web on the Strike goes on like this:

"At least 2 million workers work in hundreds of units situated in the vast industrial belt in and around Gurgaon. There are around 1 million workers work in the units of automobile industry alone. These workers who produce auto parts for companies from all over the world in modern factories have to work in very bad conditions. More than 90 percent of these are contract workers who work for 10-12 hours for 4000-5000 per month. The workload and speed is extremely high and they have to face verbal abuse and even beatings by the supervisors and security guards. Most of the factories do not have unions and where the workers have managed to form a union, they have to face constant harassment. The established big unions do nothing except paying lip service to the issues and in many cases have ditched the workers in favour of the management. In this scenario, the issue of the right to form a union is a common and universal issue in the Gurgaon industrial belt. The pamphlet distributed by the Bigul Mazdoor Dasta says that not only the workers of Maruti Suzuki but workers all over the country are being denied the right to form their unions so that they can raise their voice unitedly against their exploitation. Thats why the demands of Maruti workers find resonance across the region. Further material in www.outlookindia.com | Lockdown And After goes on like this and gives a balanced perspective.All other views were mostly supporting the Management. "In many ways, the 13-day strike at Maruti Suzuki India Ltd, Indias largest automobile manufacturer, was a wake-up call for the Indian corporate sector. Not only did it illustrate the unity among the companys workers, but with workers and unions across states voicing support, it threatened to flare up into a wider industrial dispute, giving strong signals of a resurgence of trade union activity in the country. It wasnt a wage hike or improvement in working conditions but the right to form a union something of a rarity in the new industrial ecosystem in Indiawhich saw 3,000 employees of Marutis Manesar plant in Haryana striking work on June 3. The plant workers wanted to register a new unionthe Maruti Suzuki Employees Union (MSEU)and had already applied for registration, something the management was opposed to. Maruti officials were not available for comments when contacted.

Managements do not want to have unions. They want to make the unions subservient to their interests.Gurudas Dasgupta, CPI

Union activities of yore, like the long-drawn Bombay textile strike in the 1980s, had of late seemed a thing of the past. In the last decade or so, due to new management practices of hiring employees on contract and not putting them on the rolls, the number of industrial disputes and strikes in the manufacturing sector had scaled down from around 250 in 2004-05 to under 100 in 2010. In 2011, this has been the only major strike so far. Labour leaders contend the lack of union activity in the industrial sector is because of largescale suppression of labour rights and union voices. Says Gurudas Dasgupta, general secretary of the CPI-supported AITUC, Managements do not want to have unions. They want to make the unions subservient to their interests and compel the workers to be part of a union controlled by them. Adds Dipankar Mukherjee, secretary, CITU, Post-1991, all companies, be they mncs or Indian, have not wanted unions to be formed. Its a pattern among new companies also, they either do not want unions or have pocket unions who support the management. The fact that incidents of flash strikes or even violent attacks on members of the management have not yet dissipated is testimony to the fact that all is not well on the labour front. The corporate sector, however, disagrees with this view, contending that best management practices are being followed. As Y.K. Modi, chairman and CEO of the Great Eastern Energy Corporation and a former FICCI president, puts it, The very fact that industries everywhere are generally having uninterrupted activity without labour trouble illustrates that there have been good practices mostly. Since the issue at Manesar was amicably settled through discussion, theres no reason to react on this matter.... I do not see the emergence of an era of nationwide militant trade unionism. The fact that 65 unions in the nearby industrial belts of Noida, Dharuhera, Manesar and Gurgaon had voiced their support and about one lakh workers from 50-odd industrial units in these areas had decided to go on fast last Friday reflects a different workers perspective. Interestingly, many of these companies are associated with the automobile industry.

Nations are competing against each other for market dominance. Any disturbance affecting productivity is bad.Y.K. Modi Ex-FICCI president

Although the strike at Maruti has been called off and the matter resolved for the time being, there are hushed discussions across companies on the way managements handle workers and trade union issues. Says BMS spokesperson Amar Nath Dogra, A strike is not the first but the last option for workers. If it happened, it was because there were issues with the way the management dealt with workers demands. There is a mechanism where workers and management recognise unions and decisions are taken with mutual discussion. We are concerned about the way the company handled the situation. Experts stress that the trend of hiring workers on contract rather than taking them in as permanent employees gives company managements the right to hire and fire on issues of performance or in times of recession, something not easy in case of permanent employees under Indian laws. According to rough estimates, over 50 per cent of workers in most of the large companies are on contract and do not have rights to join unions or can only join one that is recognised, even suggested, by the management. The general view among workers is that managements cannot dictate which unions workers should get affiliated to as it is their right to register or join a union. Says Mukherjee, Employees have the right to form unions. Labour laws do not give managements the right to dictate which union the workers should join or what their political leanings should be. The demand for a new union at Marutis Manesar unit may be a signal of discontent amongst workers regarding management practices and their own rights and the lack of a redressal mechanism. Coen Kompier, labour standards specialist with the International Labour Organisation (ILO), says, In general and compared to many other countries, the industrial relations system in India is very confrontational, which harms the interests of all parties.... A new era in the trade union movement will happen only if unions can operate in full freedom.

The employers havent acted intelligently here. Their actions harmed Marutis productivity, says ILOs Kompier.

The CPIs Dasgupta remains optimistic that the Maruti strike will open up the scope of the trade union movement and will work towards unity of workers and inspire them in future. Given the fact that the 13-day strike led to production losses of over 12,000 cars and business losses of over Rs 400 crore, the corporate sector obviously has a different view. One which is strengthened by the fact that apart from Maruti, vendors and companies associated with it also suffered significant losses. Industrial disputes anywhere are bad. These cause losses for both workers and investors. Consumers too face problems. All nations are competing against each other for market dominance. Any disturbance affecting productivity is bad, points out Modi.

So whats the way forward for companies and workers? Modi feels there must be more effective utilisation of industrial dispute resolutions as contained in the ILO governing council resolution on tripartite consultation convention 1976, a part of the ILO Plan of Action 2010-16. Considering that neither the BJP-led NDA government nor the Congress-led UPA one has shown any political will to pursue labour reforms, including ensuring that workers (whether permanent or contractual) are given their legal dues, it may finally fall on the workers and union leaders to chart their own course. Unless, of course, the government wakes up to the need to strike an equitable balance. "

Setting up of Grievance Redressal Machinery 9C. (1) Every industrial establishment employing twenty or more workmen shall have one or more Grievance Redressal Committee for the resolution of disputes arising out of individual grievances. (2) The Grievance Redressal Committee shall consist of equal number of members from the employer and the workmen. (3) The chairperson of the Grievance Redressal Committee shall be selected from the employer and from among the workmen alternatively on rotation basis every year. (4) The total number of members of the Grievance Redressal Committee shall not exceed more than six: Provided that there shall be, as far as practicable one woman member if the Grievance Redressal Committee has two members and in case the number of members are more than two, the number of women members may be increased proportionately. (5) Notwithstanding anything contained in this section, the setting up of Grievance Redressal Committee shall not affect the right of the workman to raise industrial dispute on the same matter under the provisions of this Act. (6) The Grievance Redressal Committee may complete its proceedings within thirty days on receipt of a written application by or on behalf of the aggrieved party. (7) The workman who is aggrieved of the decision of the Grievance Redressal Committee may prefer an appeal to the employer against the decision of Grievance Redressal Committee and the employer shall, within one month from the date of receipt of such appeal, dispose off the same and send a copy of his decision to the workman concerned.

A confusion may come into the mind of the Staffing Industry whether it will come within the definition of Industry For this Sec 2 (j) of the Industrial Disputes Act defines "industry" means

any systematic activity carried on by co-operation between an employer and his workmen (whether such workmen are employed by such employer directly or by or through any agency, including a contractor) for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not, - (i) any capital has been invested for the purpose of carrying on such activity; or (ii) such activity is carried on with a motive to make any gain or profit, and includes - (a) any activity of the Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1949); (b) any activity relating to the promotion of sales or business or both carried on by an establishment, but does not include - (1) any agricultural operation except where such agricultural operation is carried on in an integrated manner with any other activity (being any such activity as is referred to in the foregoing provisions of this clause) and such other activity is the predominant one. Explanation : For the purposes of this sub-clause, "agricultural operation" does not include any activity carried on in a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951); or (2) hospitals or dispensaries; or (3) educational, scientific, research or training institutions; or (4) institutions owned or managed by organizations wholly or substantially engaged in any charitable, social or philanthropic service; or (5) khadi or village industries; or (6) any activity of the Government relatable to the sovereign functions of the Government including all the activities carried on by the departments of the Central Government dealing with defence research, atomic energy and space; or (7) any domestic service; or ( any activity, being a profession practised by an individual or body of individuals, if the number of persons employed by the individuals or body of individuals in relation to such profession is less than ten; or (9) any activity, being an activity carried on by a co-operative society or a club or any other like body of individuals, if the number of persons employed by the co-operative society, club or other like body of individuals in relation to such activity is less than ten; Hence a separate Grievance Redressal Machinery for Temps needs to be set up with proper Legal advice.From the Clients side also they will need to ensure whether the Staffing Companies have such a redressal machinery in place.This would become a need of legal compliance.

We owe a special thanks to Mr Johann Pillai Director Regional [Asia -Pacific] Manpower Services India P Ltd a renowned expert in Indian Staffing Industry for inducting us into providing Legal advice for Staffing Industry for nearly 5 years which we continue to do .

The major reasons why this problem happened are as below (this is my viewpoint): a) Over dependence on contract workers b) Heavy pay disparity between contract workers and permanent employees c) No weekly off to contract workers (refer Business Standard of 30-Jul-2012) d) Senior managers living in ivory towers. They had brushed under the carpet "us and them" attitude. e) Employers should empower HR. They attach HR to their apron strings. f) Management science is not above good old proverbs. Management did lot of saving by employing and exploiting contract workers. But everything negated in just couple of hours. This reminds me good old Hindi proverb "Sou Sunar Ki, Ek Luhar Ki". g) Companies like Maruti Suzuki worry about Corporate Social Responsibility (CSR). But then Employee Social Responsibility (ESR) precedes CSR. Each company should note this. h) Lastly, HR should stop playing second fiddle to the management. When employees rights are trampled, they should not play second fiddle. When Rome was burning, Nero was playing fiddle. When HR plays the second fiddle, factories like Maruti Suzuki are bound to burn. Ok... Dinesh V Divekar
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Aditi Jain, Delhi

Contributing Member

Subject - Re: Learning in Maruti Incident - An HR must do & dont do

In my opinion the major reason for this incident was just an ego clash. It is so sad to know that these tiny issues can even result in loss of life of innocent people. The corrective actions are taken by company & management but what HR should focus is on preventive actions, that can be our forte. In India we have to rely and depend on contractual labor but while doing that we should make sure that diversity - regional ratio, sex ratio is maintained and Company's & HR should be open to support labor unions. If they join hands with them we can really change the complete picture.
tajsateesh
Senior Member

Subject - Re: Learning in Maruti Incident - An HR must do & dont do

Hello Sridharan, I think both Dinesh V Divekar & Aditi Jain have given valid aspects to the issue--though Aditi Jain's surmise of attributing the WHOLE & ONLY reason to 'ego clashes' doesn't really jell, given the nature, scope & extent of the damage done [if we see beyond the 'physical aspect' of the incident]. While I do agree with Dinesh's comments reg 'empowering HR', I am not so sure if this specific aspect can be applied to the Maruti incident. Suzuki has a reputation for empowering most of their employees/functions--with the rider that the performance results have to flow, which is understandable & justifiable. Somehow, the 'profit-only' motive does seem to have overrode all other aspects of operational aspects in the Non-IT sector--there doesn't seem to be any other logical explanation for the over-dependance on Contract labour [as per Mr. Bhargava-Chairman, Maruti--in one of the TV programs, it's ~60% in Maruti, which by any account is quite large]. I think it's here that HR of Maruti failed. Who would have even a semblance of 'ownership/sense-of-belonging' towards the Employer when he/she knows that their wages come-in ONLY if they attend work & they can be fired without notice? From a purely HR perspective, the Maruti HR ought to have seen this situation coming when

such is the mix of the labour force. In a way, Aditi Jain has a point in saying 'In India we have to rely and depend on contractual labor.....'. But it's, by & large, the same the world over. The KEY would & ought to have been to maintain the Right Balance. Human nature being what it is, when someone sees another person getting more than him/her for the same work, there's bound to be some sort of a counter/reaction--in which direction & in what way & force totally depends on the overall circumstances. I think the Maruti HR failed to gauge or rather misplaced the silence of the workers as 'acceptance' of the company policies/norms. Another aspect that's still open-ended seems to be the involvement of outsiders in this incident [should be clear only after the Enquiry is complete]. Frankly, I too wouldn't rule it out altogether. Given the state & nature of our Indian politics, it wouldn't be surprising to see any political party from surreptitiously backing any violent actions of the staff--as long as their involvement doesn't come-out into the open. That's my take on the incident/issue. I do hope others too contribute to this thread--and I am with Dinesh in appreciating Sridharan for posting. The way I see it, this incident/issue has all the portents of becoming a classic coursework Case-Study in all MBA-HR Institutions in the time-to-come, since there seems to be multiple dimensions to this incident. Rgds, TS
sridharan
Contributing Member

Subject - Re: Learning in Maruti Incident - An HR must do & dont do

Hi team, Thease all above are very good points to think and work on it. Thanks for such a great input towards the incident. if many team members shares their views and learning, it will be really useful to all HR professionals.'

Thanks team, Regards, Sridharan. K

bijay_majumdar
Contributing Member

Subject - Re: Learning in Maruti Incident - An HR must do & dont do

Hi, Mr. Dinesh has projected right points in favour of hr as remedial action towards averting such incidents.I agree to these points.My views say that an HR at GM level would be empowered to exercise all possible implementations to avert such incidents while keeping the management in confidence.Point is even then the failure occured.Somewhere i feel there was lack in understanding the very human values and ethical practices.No Company Like the Maruti will missout on these factors while framing their policies.Secondly it is the discision makers who must review the changes in human behaviuors and monitor the change pattern in employees through best hr practices as i feel, Hr is the only concerned department who can and supposed to interact with human resources and generate the environments conducive to work and sustain human values. Thanks Bijay
eayogee
Subject - Re: Learning in Maruti Incident - An HR must do & dont do

Hi Friends, I appreciate that such a issue was taken for discussion, that shows how concern all of us on what had happened in Maruti Udyog Manesar Unit. I am in agreement witha ll the comments above But, what I personally feel is its total failure of Management system followed in Maruti and similarly replicated in other industries. Ultimately, most of the people start blaming failure of HR Department in Maruti and talking of empowering Hr department but, what in opinion is not the failure of HR department nor they have been having less power they were fully empowered. It is failure of Maruti Managemnet system. If you see the entire story one can notice many things like huge pay difference between Maruti Udyog Employee and contract Employee performing same job,(This is voilation of basic fundamental right "Right to Equality").

Ego clash between Maruti Udyog Employee and contract employees Voilation of social harmony. A business is costodian of society's asset's, It takes everything from Society Energy, Rawmaterial and manpower. it sells back their products to the society, exploits society's natural resources and contributes pollution into the society. So it become essential for them to behave in Socially Responsible manner. its the responsibility of the business to maintain social harmony and take steps to maintain social harmony and peace in society. In race of earning profit they have forgotten fundamentals and allowed business to be driven by house of thought of "Profit at any cost". They have allowed practice of exploitation of Social resources. It has resulted into out burst in such manner which is not acceptable or supported by any culture. This incident has not only damaged to Maruti Udyog but also damaged social image of India and specially Gurgaon. Wrong management policy of maruti Udyog was to be controlled and rectified by all departments not only by HR department. All employee's of Maruti live in same society in which other exploited employees live(same city Gurgaon Not talking about hpousing society). This could have bursted into some other form outside plant also at that time how they cpould have saved themselves and their family. Maruti Management have at that time escaped saying its local or individual problem so, it was responsibility of all Maruti Udyog employees to Stand against such exploitation of their fellow society members. This shows its failure of management system which have failed to create sociually responsible employees and build sens of ownership among all associated with it. Wrong management system cannot be justified by blaming any department for failure or any outsider for the same. "At least 2 million workers work in hundreds of units situated in the vast industrial belt in and around Gurgaon. There are around 1 million workers work in the units of automobile industry alone. These workers who produce auto parts for companies from all over the world in modern factories have to work in very bad conditions. More than 90 percent of these are contract workers who work for 10-12 hours for 4000-5000 per month. The workload and speed is extremely high and they have to face verbal abuse and even beatings by the supervisors and security guards. Most of the factories do not have unions and where the workers have managed to form a union, they have to face constant harassment. The established big unions do nothing except paying lip service to the issues and in many cases have ditched the workers in favour of the management. In this scenario, the issue of the right to form a union is a common and universal issue in the Gurgaon industrial belt.

The pamphlet distributed by the Bigul Mazdoor Dasta says that not only the workers of Maruti Suzuki but workers all over the country are being denied the right to form their unions so that they can raise their voice unitedly against their exploitation. Thats why the demands of Maruti workers find resonance across the region. Further material in www.outlookindia.com | Lockdown And After goes on like this and gives a balanced perspective.All other views were mostly supporting the Management. "In many ways, the 13-day strike at Maruti Suzuki India Ltd, Indias largest automobile manufacturer, was a wake-up call for the Indian corporate sector. Not only did it illustrate the unity among the companys workers, but with workers and unions across states voicing support, it threatened to flare up into a wider industrial dispute, giving strong signals of a resurgence of trade union activity in the country. It wasnt a wage hike or improvement in working conditions but the right to form a unionsomething of a rarity in the new industrial ecosystem in Indiawhich saw 3,000 employees of Marutis Manesar plant in Haryana striking work on June 3. The plant workers wanted to register a new unionthe Maruti Suzuki Employees Union (MSEU)and had already applied for registration, something the management was opposed to. Maruti officials were not available for comments when contacted.

Managements do not want to have unions. They want to make the unions subservient to their interests.Gurudas Dasgupta, CPI

Union activities of yore, like the long-drawn Bombay textile strike in the 1980s, had of late seemed a thing of the past. In the last decade or so, due to new management practices of hiring employees on contract and not putting them on the rolls, the number of industrial disputes and strikes in the manufacturing sector had scaled down from around 250 in 2004-05 to under 100 in 2010. In 2011, this has been the only major strike so far.

Labour leaders contend the lack of union activity in the industrial sector is because of large-scale suppression of labour rights and union voices. Says Gurudas Dasgupta, general secretary of the CPI-supported AITUC, Managements do not want to have unions. They want to make the unions subservient to their interests and compel the workers to be part of a union controlled by them. Adds Dipankar Mukherjee, secretary, CITU, Post-1991, all companies, be they mncs or Indian, have not wanted unions to be formed. Its a pattern among new companies also, they either do not want unions or have pocket unions who support the management. The fact that incidents of flash strikes or even violent attacks on members of the management have not yet dissipated is testimony to the fact that all is not well on the labour front. The corporate sector, however, disagrees with this view, contending that best management practices are being followed. As Y.K. Modi, chairman and CEO of the Great Eastern Energy Corporation and a former FICCI president, puts it, The very fact that industries everywhere are generally having uninterrupted activity without labour trouble illustrates that there have been good practices mostly. Since the issue at Manesar was amicably settled through discussion, theres no reason to react on this matter.... I do not see the emergence of an era of nationwide militant trade unio nism. The fact that 65 unions in the nearby industrial belts of Noida, Dharuhera, Manesar and Gurgaon had voiced their support and about one lakh workers from 50-odd industrial units in these areas had decided to go on fast last Friday reflects a differe nt workers perspective. Interestingly, many of these companies are associated with the automobile industry.

Nations are competing against each other for market dominance. Any disturbance affecting productivity is bad.Y.K. Modi Ex-FICCI president

Although the strike at Maruti has been called off and the matter resolved for the time

being, there are hushed discussions across companies on the way managements handle workers and trade union issues. Says BMS spokesperson Amar Nath Dogra, A strike is not the first but the last option for workers. If it happened, it was because there were issues with the way the management dealt with workers demands. There is a mechanism where workers and management recognise unions and decisions are taken with mutual discussion. We are concerned about the way the company handled the situation. Experts stress that the trend of hiring workers on contract rather than taking them in as permanent employees gives company managements the right to hire and fire on issues of performance or in times of recession, something not easy in case of permanent employees under Indian laws. According to rough estimates, over 50 per cent of workers in most of the large companies are on contract and do not have rights to join unions or can only join one that is recognised, even suggested, by the management. The general view among workers is that managements cannot dictate which unions workers should get affiliated to as it is their right to register or join a union. Says Mukherjee, Employees have the right to form unions. Labour laws do not give managements the right to dictate which union the workers should join or what their political leanings should be. The demand for a new union at Marutis Manesar unit may be a signal of discontent amongst workers regarding management practices and their own rights and the lack of a redressal mechanism. Coen Kompier, labour standards specialist with the International Labour Organisation (ILO), says, In general and compared to many other countries, the industrial relations system in India is very confrontational, which harms the interests of all parties.... A new era in the trade union movement will happen only if unions can operate in full freedom.

The employers havent acted intelligently here. Their actions harmed Marutis productivity, says ILOs Kompier.

The CPIs Dasgupta remains optimistic that the Maruti strike will open up the scope of the trade union movement and will work towards unity of workers and inspire them in future. Given the fact that the 13-day strike led to production losses of over 12,000 cars and business losses of over Rs 400 crore, the corporate sector obviously has a different view. One which is strengthened by the fact that apart from Maruti, vendors and companies associated with it also suffered significant losses. Industrial disputes anywhere are bad. These cause losses for both workers and investors. Consumers too face problems. All nations are competing against each other for market dominance. Any disturbance affecting productivity is bad, points out Modi. So whats the way forward for companies and workers? Modi feels there must be more effective utilisation of industrial dispute resolutions as contained in the ILO governing council resolution on tripartite consultation convention 1976, a part of the ILO Plan of Action 2010-16. Considering that neither the BJP-led NDA government nor the Congress-led UPA one has shown any political will to pursue labour reforms, including ensuring that workers (whether permanent or contractual) are given their legal dues, it may finally fall on the workers and union leaders to chart their own course. Unless, of course, the government wakes up to the need to strike an equitable balance. " More materials are available in the web .

rajanlawfirm Pls see :Legal Compliances required for the Staffing Industry
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