MARUTI - NEEDS 'ZEN' PHILOSOPHY 'SWIFT'LY

By Ruma Dubey

Dangerous. Vicious. Extremely fluid. These are the adjectives which come to mind, the moment one talks about the current ongoing turmoil at Maruti’s Manesar plant. If last year the plant was plagued by striking laborers, this year, it has taken a sinister turn with murder and mayhem. Striking laborers is one thing but when it causes a loss of life, injures people, then it is surely not about the demands of the laborers at all and most certainly not about the company. There is news today of Naxalites having infiltrated not just Maruti’s labor force but that of companies all around the Haryana belt. And that is dangerous news as it could mean more violence and more loss of life and production.

Maruti did the right thing by declaring a lock out as one cannot be so callous, putting production worries ahead of this violence. It has been perfect in taking the stand of starting the plant only when the perpetrators are arrested.  The management has done the right thing now but the question which comes to mind is – why is it inept at handling these ongoing labor troubles at the Manesar plant?  Last year, the same plant saw labor trouble in June, August and October and now once again, we see the same if not worse.  Why is the management not able to stem this rot?

Naturally, the markets are unhappy and the stock price of Maruti has tanked today over 7% in the morning trades as uncertainty over restarting the plant looms large. Somehow this brings to mind the strike which crippled and maimed the Premier Padmini plant forever.

The auto sector in India, most of which is concentrated in the Gurgaon – Manesar belt, followed by Tamil Nadu and some parts of Maharashtra and now Gujarat has faced some of the worst labor turbulences. Hyundai and Ashok Leyland in South India, General Motors, Bajaj, Mahindra, Ford and Hyundai in Western India; all have had their share of labor issues. But the worst has been the Gurgaon – Manesar belt with HMSI, Hero Honda, Rico Auto, Sunbeam Auto and Maruti which have been inundated with labor issues.

So what is it about the auto sector which prompts such frequent and prolonged labor strikes? Many blame it on the practice of contractual or casual laborers, who are employed by companies to keep a tight leash on their costs. These casual workers are paid 20-30% lower than those on the company payroll , with no welfare or social benefits. Many trade unions blame it on the more taxing nature of jobs, where the working conditions in most of the auto manufacturing units are long and strenuous.  Wage differences between the causal and permanent workers, with management not granting the permanent status to the contractual laborers despite having worked for years tops the list of disgruntlement.  The management, apart from lower costs, feels it is ‘safer’ to have contractual workers as they can be fired at will which in the case of permanent workers gets sticky. And when these temporary workers get fired, they feel cheated and exploited and thus strike work. It is a vicious cycle and both the management and labor force seem to be caught in its vortex.

Is there a way out at all or should one allow the whirlpool to grow larger, sucking the entire auto sector into it and drowning it completely? Well, problems exist only because there are solutions and the management needs to correct itself. Maybe a first step would be to reduce the wage disparity between the temporary and permanent workers and provide better working conditions and some welfare benefits to the casual workers. For retaining the right to fire errant workers, if the management has to pay more, surely it is a smarter trade off than having to suffer loss of production and money due to such ongoing labor strikes. Maybe instead of talking to workers only when they strike, the management should have regular dialogues which in turn will give the workers a sense of respect and caring. Yes, like so many other things which need to be overhauled, we urgently need to overhaul the outdated labor laws but with nothing happening in the Govt, it is up to the people to bring about some change.

If one looks back, every act of violence or insult is a consequence of a hurt self-esteem or self-respect. So if the management can change its attitude and treat the workers with care and respect, maybe then such strikes might never happen. It sounds very simplistic but every complicated question of life always has the simplest of solution and most lie within us.

Maruti management needs to stem this rot before it eats away the company completely and if as alleged, Naxalites have infiltrated the labor ranks, it needs to get more vigilant. It is time for a lot of introspection, not just for Maruti but probably for the entire auto sector; not just about where the sector is headed but about the path taken to achieve its goals.