Maruti to lift lockout at Manesar

Company sacks 500 workers

Maruti to lift lockout at Manesar

Maruti Suzuki India on Thursday announced lifting of the month-old lockout at its violence-ravaged Manesar plant and partial resumption of operations on August 21, while firing 500 each of permanent and contract workers for alleged involvement in last month’s violence.

“The company has decided to restart the production stage by stage. On August 21, about 300 permanent workers will report for work,” MSIL chairman R C Bhargava told reporters here. The company has fired 500 permanent employees and an equal number of contract workers for their alleged role in the violence, he said. If investigation found more guilty of involvement, the number would increase, the chairman said, adding that fresh hiring would start next month.

“We have issued termination notices to 500 permanent workers of the plant. Another 500 contract workers have been identified for their alleged involvement and will not be taken back during fresh recruitment starting September 2,” a senior company official said.
The company, the country’s leading car maker, declared a lockout at its Manesar plant on July 21, citing  the safety of the employees as paramount.

The plant was rocked by violence on July 18, resulting in the killing of a senior executive and injury to nearly 100 others. So far police have arrested 154 workers, including all office-bearers of the employees' association. On Thursday, a company employee Jiyalal, the main accused, was arrested by the Haryana police. 

Of the total 3,300 workers in the plant, 1,528 were permanent and the rest contract labour.  As and when production picks up, more employees will be asked to rejoin, but the company will pay salary to all the permanent employees even during the layoff period. On paying salary for the lockout period, a decision will be taken after completion of the probe. The company will shift some of its employees from Gurgaon plant to Manesar plant temporarily, he said.

He said in future the company will maintain a 80:20 ratio of permanent and contract employees. However, contract labour will not be used in the production lines henceforth, he added.

On compensating the terminated employees, chief operating officer ( administration) S Y Siddiqui said they will be given three months’ salary in lieu of the notice period and 15 days salary for every year of completed service.

Security has been beefed up at the plant with the Haryana government giving armed police support and the company forming an 100-guard squad in addition to existing security.

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