Labour unrest across the country is seriously damaging India’s Economy & Reputation. B&E brings a nose-to-the ground report on longstanding issues and how they can be resolved
As you approach Gate No. 3 of Maruti Suzuki’s plant at Manesar, a series of recorded messages played over a public address system rise above the surrounding din. Knots of striking workers can be seen milling around the gate, some holding protest banners and shouting agitatedly. But their chorus is drowned by the exhortations played over the loudspeaker, asking protesting workers to sign the “good conduct bond” and get back to work. Out of the 1200-1400 workers on strike, about 300-500 workers can be seen around Gate No. 3; many of them openly derisive of Maruti’s condition to allow only those workers into the plant who sign the “good conduct bond”.
It’s not the first time that the Maruti or other major automakers in Haryana’s Gurgaon-Manesar auto belt are having to confront labour issues. Players like Honda Motorcycle & Scooter India, Hero MotoCorp and Rico Industries have all faced labour disputes in recent years. For Maruti alone, it’s the third time in as many months that prickly labour issues have come to a boil. The company has been facing labour problems at the Manesar plant since June, when workers struck work for 13 days demanding the recognition of the Maruti Suzuki Employees Union. The disruption led to a production loss of around 12,000 cars. The latest impasse, which was triggered after Maruti sacked some of its workers over quality issues, has once again hit the production of its popular models. Over 10,000 cars is the estimated loss in production due to the latest imbroglio. In order to service the growing demand for the recently launched new Swift Hatchback, of which the company is said to have received over 90,000 bookings, Maruti has shifted production to its Gurgaon plant from the trouble-ridden Manesar plant.
In recent times, like the management-union standoff at Maruti Suzuki’s Manesar unit, a rash of industrial disputes has broken out in other parts of the country leading to loss in productivity, profits and lost man-days. In West Bengal, many factories in the prominent industrial belts of the state — Hooghly, North 24 Parganas, Durgapur and Asansol have closed down in recent years, either due to industrial sickness or because of strident trade unionism and labour troubles. The 2003 industrial census of the state revealed that around 26,000 units had closed down, putting 500,000 workers out of their jobs. According to a source in the West Bengal Labour Department, the total number of people affected by the closure of these industries comes to about three million if the number of dependents is included. “Trade union leaders often provoke workers to start agitations against the owners when their financial dues including provident fund, gratuity, bonus and even wages are not paid,” says social activist and General Secretary of Nagarik Manch, Naba Dutta. Factory owners have not deposited Rs.5.5 billion in provident fund dues. The backlog is around Rs.3.5 billion in the jute mill sector alone. Such financial irregularities on the part of the owners provoke workers to participate in strikes willingly or unwillingly. “Union leaders often assure us that if we participate in the strike, the government would call a tripartite meeting to solve our problems,” says Biswanath Dutta, a jute mill worker in Hooghly district. But in reality, trade unions often fail to keep their promises and problems remain unresolved. Workers can’t go against the decision of union leaders who generally maintain good relations with the owners. On the other hand, workers face a sack if they defy the trade unions. Anupam Boral, Managing Director of Kolkata-based Geetanjali Solar Enterprise, opines that trade union leaders often resist owners’ actions against errant workers. As a result, the cost of production increases and it creates severe problems for factory owners to compete in the market.
As you approach Gate No. 3 of Maruti Suzuki’s plant at Manesar, a series of recorded messages played over a public address system rise above the surrounding din. Knots of striking workers can be seen milling around the gate, some holding protest banners and shouting agitatedly. But their chorus is drowned by the exhortations played over the loudspeaker, asking protesting workers to sign the “good conduct bond” and get back to work. Out of the 1200-1400 workers on strike, about 300-500 workers can be seen around Gate No. 3; many of them openly derisive of Maruti’s condition to allow only those workers into the plant who sign the “good conduct bond”.
It’s not the first time that the Maruti or other major automakers in Haryana’s Gurgaon-Manesar auto belt are having to confront labour issues. Players like Honda Motorcycle & Scooter India, Hero MotoCorp and Rico Industries have all faced labour disputes in recent years. For Maruti alone, it’s the third time in as many months that prickly labour issues have come to a boil. The company has been facing labour problems at the Manesar plant since June, when workers struck work for 13 days demanding the recognition of the Maruti Suzuki Employees Union. The disruption led to a production loss of around 12,000 cars. The latest impasse, which was triggered after Maruti sacked some of its workers over quality issues, has once again hit the production of its popular models. Over 10,000 cars is the estimated loss in production due to the latest imbroglio. In order to service the growing demand for the recently launched new Swift Hatchback, of which the company is said to have received over 90,000 bookings, Maruti has shifted production to its Gurgaon plant from the trouble-ridden Manesar plant.
In recent times, like the management-union standoff at Maruti Suzuki’s Manesar unit, a rash of industrial disputes has broken out in other parts of the country leading to loss in productivity, profits and lost man-days. In West Bengal, many factories in the prominent industrial belts of the state — Hooghly, North 24 Parganas, Durgapur and Asansol have closed down in recent years, either due to industrial sickness or because of strident trade unionism and labour troubles. The 2003 industrial census of the state revealed that around 26,000 units had closed down, putting 500,000 workers out of their jobs. According to a source in the West Bengal Labour Department, the total number of people affected by the closure of these industries comes to about three million if the number of dependents is included. “Trade union leaders often provoke workers to start agitations against the owners when their financial dues including provident fund, gratuity, bonus and even wages are not paid,” says social activist and General Secretary of Nagarik Manch, Naba Dutta. Factory owners have not deposited Rs.5.5 billion in provident fund dues. The backlog is around Rs.3.5 billion in the jute mill sector alone. Such financial irregularities on the part of the owners provoke workers to participate in strikes willingly or unwillingly. “Union leaders often assure us that if we participate in the strike, the government would call a tripartite meeting to solve our problems,” says Biswanath Dutta, a jute mill worker in Hooghly district. But in reality, trade unions often fail to keep their promises and problems remain unresolved. Workers can’t go against the decision of union leaders who generally maintain good relations with the owners. On the other hand, workers face a sack if they defy the trade unions. Anupam Boral, Managing Director of Kolkata-based Geetanjali Solar Enterprise, opines that trade union leaders often resist owners’ actions against errant workers. As a result, the cost of production increases and it creates severe problems for factory owners to compete in the market.
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