Maruti Suzuki: MSEU will not participate in Union Elections

Stocks

oi-Shoaib MD

By Shoaib Md

Published: Monday, July 11, 2011, 16:03 [IST]

It is fairly common knowledge that if problems are not solved then they shall not go away. This was something, the Maruti Suzuki management failed to realize. And now their problem of Manesar plant may come back to haunt them.

Trouble seems to be on the horizon of Maruti Suzuki's Manesar plant after the rebel body, Maruti Suzuki Employees Union (MSEU), decided to boycott the union election slated for July 16. Meanwhile, the company has management has taken the position that it doesn't recognizes the rebel body.

The rebel, MSEU, is trying to get itself registered from the Haryana government. MSEU claims that it is the real representative of the workers at the Manesar plant, therefore, they have nothing to do with the Union Maruti Udyog Kamgar Union (MUKU), the current union at the company.

Shiv Kumar, MSEU general secretary said, "We will boycott as we have nothing to do with this election process. We feel that this is just an exercise for the Gurgaon plant and Manesar does not require elections at all since we are the workers representative body here."

Kumar also said that workers at Manesar plant were supporting the MSEU.

At the other-end, the management too is also in no mood to listen after suffering losses due to the agitation last month.

Maruti Suzuki chairman R C Bhargava stated that as management has no role in the election process it would be held for both the plants and the winners will represent the workers of both Gurgaon and Manesar. "We are the same company—Manesar and Gurgaon—and they are not independent entities," said Bhargava.

The peace formula for last month's 13 days strike did not delve on the issue of a new union at Manesar and even about the entry of outsiders representatives on the workers body. Since the problem was not solved, it remains, amd will get serious if the rebels continue to ignore the union elections, or even if the company does not take appropriate steps to pacify their grievances.

Perhaps it would be better to book profits on this stock and wait till the problem is solved rather than reacting on stop-gap arrangement, the company's India performance will be volatile if an amicable solution is not reached.

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