Maruti Suzuki strike enters 13th day. Set to affect other factories

Stocks

oi-Shoaib MD

By Shoaib Md

Published: Thursday, June 16, 2011, 12:38 [IST]

Drama at the Martuti's Manesar plant entered its 13th day. The management has refused to reinstate 11 sacked employees.

A company spokesperson said that there is no change in situation since yesterday.

To add to the woes of the auto manufacturing industry, more than two lakh workers plan to go on hunger strike from Friday.

Workers in approximately 65 factories in the Gurgaon-Manesar industrial belt intend to 'work empty stomach' on June 17. Further on June 20, they will hold a two-hour tool-down strike from 11 am to 1 pm in support of their brothers, striking employees, at Maruti's Manesar plant.

Earlier in the week the workers were deciding a two-hour tool down protest in support. This was postponed on the Chief Minister's request. Now a new date of June 20th has been set to support the ongoing strike at

The strike has affected the production at the Manesar plant. The supply of popular models the SX-4 and D'Zire have been hit. During this period the company has suffered losses worth approximately Rs 600 crore so far. The company, Maruti Suzuki, will release a new waiting list soon.

Media reports indicate that on Wednesday evening, Bhupinder Singh Hooda, Haryana Chief Minister, met top executives at Maruti Suziki, and it is understood that the state government has assured the company of support for not permitting the formation of a second union.

Due to the strike, waiting periods for diesel variants of three models -- Swift, DZiRE and SX4 -- have increased further by up to one month and the company is now fearing an impact on its sales during this month due to the production loss.

Mayank Pareek, Managing Executive Officer, said: "We usually do not produce more cars than the market demand. So, whatever loss in production we are witnessing, that will be the impact on sales in this month."

On June 4, workers went on a strike demanding the recognition of a new union, Maruti Suzuki Employees Union (MSEU), formed by those working at the Manesar plant, among other things.

Cracking the whip, the company fired 11 workers last week for allegedly inciting others to go on strike. Currently, the company has one recognised union -- Maruti Udyog Kamgar Union -- which is dominated by workers at the Gurgaon plant.

The Manesar plant rolls out about 1,200 units every day in two shifts. It produces hatchbacks Swift and A-Star and sedans DZiRE and SX4 at the Manesar plants.

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