From what meets the eye, and the contentions of Maruti Suzuki India’s management, the recent brutality at its Manesar plant was uncalled for. Though other industry brass beg to differ, company’s Chief Operating Officer (Administration), S Y Siddiqui, lays threadbare the events preceding that dark Wednesday. Excerpts of an interview with B S Arun of Deccan Herald:
On wage negotiations
Wage negotiation process was split into two categories – Gurgaon plant and Manesar plant. The new wage structure will take effect on April 1, 2013 and be valid for the next three years. Gurgaon employees were prompt, did not require much education as they have 18-20 years experience, understand their job profile and the requirement of the shop floor. Their negotiations started early and we constituted one senior level team. As for Manesar, we kept asking for their demands and they submitted it only in May. These workers required a lot of education on many issues as they were engaging in wage negotiation for the first time. They were getting close to financial demands and a final picture would have emerged by mid-August.
Hence, the recent violence was unprovoked. When the 2011 strike ended in October, they wanted to have an independent union, not linked to Gurgaon union. According to an agreement, two committees were to be formed and we requested them to name their representatives. The workers were opposed to the committees and wanted an union. In February, the new union was registered and they were happy. Another aspect thrown up during last year’s unrest was that contract workers were not getting equal remuneration.
On phasing out contract labour...
We have decided to phase out contract workers from direct manufacturing process by March, 2013. We will make new recruitments and contract workers will be given preference. Only in non-value added works, contract system will continue. Since October 2011, we have taken a lot of pro-employee initiatives like toilets and fans in work areas, regular interaction with workers.
On lifting the lockout...
We are waiting for the Special Investigation Team’s report to know the cause and initiate corrective measures. The guilty have to be punished. We don’t know the time-frame. The Haryana government has promised an inquiry and the trial will be fast-tracked. Since a lockout means stoppage of all business, no wage negotiations for now.
On losses...
As for losses at Manesar, which was producing SX4, Swift and A Star models with a capacity to produce 1700 cars a day, the loss is estimated at about Rs 60 crore a day.
If you look at components supplied by smaller companies, which are
critically dependant on Maruti for weekly and monthly business, the
losses would be huge. It is not just financial losses, ensuring the safety and security of our employees, which define normal industrial environment, is a bigger liability.
On what’s happening at ground zero...
Right now, our technical team is assessing the damage caused to our office, which is completely burnt, control room at the entrance where security and reception operates and the shop floor, besides the time taken to restore normalcy. Once the investigation report also comes and the trial is completed, we can perhaps spell out how long it will take to get the company up and running.
On Wipro head Azim Premji’s social unrest remark...
We are shocked and pained at that statement. It is premature to jump to conclusions.
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