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Maruti lockout decision likely by end of the week

Source : BUSINESS_STANDARD
Last Updated: Mon, Aug 13, 2012 19:26 hrs
A policeman walks inside the premises of Maruti Suzuki's plant in Manesar

Maruti Suzuki India Limited (MSIL) on Monday said it would decide on resuming operations at the violence-hit Manesar unit later this week.

The brass at MSIL met earlier in the day to discuss the assessment reports prepared by the Haryana Police and the company internally to gauge preparedness for resuming production. However, the discussion was inconclusive.

S Y Siddiqui, chief operating officer (HR, Finance, IT and COSL) said, "Talks have been on for the last two days. There is a team of 70-80 people - both from the company and the state agencies - evaluating the situation. A decision may be taken towards the end of the week."

The company had declared an indefinite lockout on July 21, after the violent standoff on July 18 which resulted in the death of a senior management executive and left injured around 100 officials. MSIL had said operations would not resume till the investigation into the incident was complete and corrective measures put in place to prevent any recurrence.

The Haryana Police has arrested 114 workers in connection with the incident. Its Director General Ranjeev Singh Dalal, had met MSIL Managing Director and CEO Shinzo Nakanishi on August 1, after arresting 10 union heads, including president Ram Mehar Singh and general secretary Sarabjit Singh and asked him to restart work at the facility.

The police has assured the company of a three-tier security system - in the Manesar area, on the Maruti Suzuki premises and to individuals. A battalion of 550 personnel has been posted at IMT Manesar.

Revenue losses incurred by the company every day due to the lockout are Rs 70 crore, with its vendors losing another Rs 56 crore daily. The Manesar unit manufactured on an average 1,600 vehicles every day, about 45 per cent of overall production at Maruti Suzuki. The unit manufactured best sellers Swift and DZire and employs around 3,000 workers.

The company had hinted it may look at hiring fresh employees at the Gurgaon facility and shifting some experienced management executives to form a nucleus and commence production work at Manesar.

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