Maruti suspends16 more workers; production halted for 2nd day

While the company claimed the crackdown was against labourers after quality issues attributed to sabotage came to light last week, the workers said the management was taking these steps in 'revenge' for their 13-day strike in June demanding the recognition of a new union

New Delhi: India's biggest passenger carmaker Maruti Suzuki India (MSI) today said it has suspended 16 more permanent workers and discontinued the services of 12 trainees as the stand-off between the management and workers at its Manesar plant intensified, completely affecting production for the second day, reports PTI.

"Production has not started yet, but there are indications that it will resume today with alternate arrangements like contract workers and hiring technicians," a MSI spokesperson said.

After suspending 10 workers, dismissing five and discontinuing with the services of six trainees yesterday, the company is continuing with its aggressive crackdown against labourers after quality issues attributed to sabotage came to light last week.

"We have suspended 16 more permanent employees today and also terminated the services of 12 more technician trainees," the spokesperson said.

Those who have been suspended and dismissed are being charged with sabotage and causing quality problem in cars produced last week.

The workers, however, said the management was taking these steps in 'revenge' for their 13-day strike in June demanding the recognition of a new union-the Maruti Suzuki Employees Union (MSEU)-at the plant located in Haryana.

Production at the plant came to a complete halt yesterday, with the company preventing workers from entering the factory without signing a 'good conduct bond' following the alleged 'sabotage'.

"The management is taking revenge on us and forcing us to sign an undertaking following rejection of our application to form a union at the plant by the Haryana government," MSEU general secretary Shiv Kumar, who led the workers during the stir in June, said.

The suspended and dismissed workers include all the office-bearers of the proposed MSEU, he added.

However, management sources said MSI has been facing serious production issues, particularly with respect to meeting targets and quality control, in the past few weeks.

"On 24th August, 1,230 cars were planned to be produced, but only 437 were assembled. Out of which, just 96 cars could pass quality check," the source had said.

Workers have been indulging in deliberate attempts to reduce output and are compromising customer interests, the source added.

However, when asked about the allegations of tampering with the products, Mr Kumar said, "Some management-supported workers are doing this after the product is ready just to take revenge on us for the June strike."

Alleging sabotage by some workers, the company management decided to enforce a 'Good Conduct Bond' for the workers, which seeks an assurance that they will not resort to go slow measures, sabotage production or indulge in activities that will hamper normal production at the plant.

Taking an aggressive stance, the management is understood to have decided to move all non-automated production work from the plant to its Gurgaon unit till the time the workers agreed to sign the bond.

Over 22 regular workers at the plant have signed the bond so far. While casual workers have been asked to report to their respective contractors, apprentices at the plant have been given leave till 1st September.

The plant, which produces models such as Swift, DZiRE and SX4, has a total of about 2,500 workers, of which 950 are regular employees.

Shares of the company were being quoted 0.23% down at Rs1,077.55 in noon trade on the Bombay Stock Exchange.

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COMMENTS

Shadi Katyal

6 years ago

We talk of unemployment and lack of jobs but our labour unions and workers are so unethical that they will sabotage and destroy the hands that feeds them.We are an unethical and undisciplined nation and Unions in such climate should be banned.
The workers involved should not only be fired but prosecuted for the damages along with Union Leaders.
In India we must learn the discipline. We have seen how our textile and Jute industiness have disappeared due to such Goondaism

BSE to investigate trade details of Bodal Chemicals

The exchange has sought clarification from the company as to how could it deny the first news that was received on the company's letterhead and signed by the company secretary

Mumbai: The Bombay Stock Exchange (BSE) on Monday said it is investigating the trading of shares in Bodal Chemicals, following the company's denial that it had issued a notice for a bonus issue, reports PTI.

The exchange is investigating the trades pursuant to the wrong announcement made by the company, BSE said in a statement.

It said it had received a fax from Bodal Chemicals on 27 August 2011 signed by the company secretary informing that the meeting of the board of directors would be held on 29 August 2011 to approve bonus issue. It also enclosed a press release issued by the company.

The announcement was disseminated on the BSE's website yesterday morning at 8.13am, the release said.

At 1.41pm, BSE received an email from the company signed by its chairman and managing director denying having sent any intimation or press release on 27th August. The said intimation was also disseminated on the BSE's website at 2.24pm.

The exchange said it was now investigating the matter and seeking clarification from the company as to how could it deny the first news that was received on the company's letterhead and signed by the company secretary.

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India’s GDP growth slows to 7.7% in April-June quarter

The decline in economic growth has been attributed to the poor performance of the manufacturing sector, which grew by 7.2% from 10.6% in the corresponding period of 2010-11

New Delhi: Confirming fears of a slowdown, India's economy grew by just 7.7% in the first quarter of the fiscal 2011-12 compared to 8.8% growth in the same three-month period last fiscal, mainly due to the poor performance of the manufacturing sector, reports PTI.

The government has projected overall economic growth in the current fiscal at around 8.5%, while the Reserve Bank of India (RBI) has projected the growth to moderate to 8% from 8.5% per in FY10-11.

In the latest data released by the government on Tuesday, gross domestic product (GDP) growth for the April-June quarter of the 2010-11 fiscal has also been revised downward to 8.8% from the earlier provisional estimate of 9.3%.

During the quarter ending 30 June 2011, growth in the manufacturing sector dipped to 7.2% from 10.6% in the corresponding period of 2010-11.

In addition, the mining and quarrying sector grew by just 1.8% during the quarter under review, as against 7.4% growth in the first quarter of the previous fiscal.

However, farm output showed an improvement, expanding by 3.9% during the quarter under review, compared to 2.4% in the corresponding three-month period last fiscal.

Furthermore, trade, hotels, transport and communications segments grew by 12.8% in the quarter under review, up from 12.1% in the year-ago period.

The services sector, including insurance and real estate, grew by 9.1% in the June quarter this year compared to 9.8% expansion in the corresponding period last year.

The Planning Commission has estimated GDP growth at 8%-8.3% per cent in the 2011-12 financial year. The Indian economy expanded by 8.5% in the 2010-11 fiscal.

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