Maruti Case: Group 6: Shrutika - Mrinmayee - Saurabh - Vishal - Taher

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Maruti Case

Group 6:
Shrutika | Mrinmayee | Saurabh | Vishal| Taher
Q1. Who is primarily responsible for the Maruti fiasco?

The immediate cause of the grave violence at Manesar plant of Maruti was the remark passed by
a member of the management and a worker, Jiya Lal and the worker’s subsequent suspension.
But the main reasons for the violence was the toxic work environment faced by the employees.
The major reasons were the harsh working hours, low pay and differences in pay, no incentive to
work hard and the production capacity had gone up despite no changes in the salaries . These
conditions occurred due to lack of communication between HR and workers, rules leading t o
discrimination in salary and no coordination among managers.
Q2. Critically examine the role of various actors of industrial relations and how
successf ully they have carried out the same.

a. Government:
A government plays an important role in industrial relations by implementing effective labour
policies and laws and acts as a mediator.
The State government, in this case, tried to reach a common ground between both parties but its
impact was never significant. Also, the government declared the strike as illegal and deployed
police personnel in the factory.

b. Management
Management's only concern was profit and not the welfare of its employees. It also argued
that workers are putting up reasonable demands and have are not disciplined.
c. Workers and Trade Unions
The plant workers wanted to register a new union-the Maruti Suzuki Employees Union (
MSEU)- and had already applied for registration. The management was not in favour of this and
had fired 11 employees.
Their demands were :
1. A four-fold increase in basic salary
2. A monthly allowance for the conveyance of 10,000
3. A laundry allowance of 3,000
4. A gift with every new car launch, and a house for every worker who wants one or more cheaper
home loans for those who want to build their own houses.
5. In addition to this compensation and normal weekend, the union demanded the current four
paid weeks of vacation be increased to 7 weeks.
Q3 What are the violations of law noticed in the entire episode?

● Murder of the general manager Awanish Dev


● Violent charge by the workers on the management
● If considered the current law, differential payment and benefits to contract and permanent
workers
● No appropriate intervals for lunch and tea
● Torture by management by threatening the workers about firing
● Signing of the Good contract bond
● Casteist remarks by the manager

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