13-day strike at Maruti's Manesar plant ends

New Delhi: The 13-day strike at the country's largest car maker Maruti Suzuki India's (MSI) Manesar plant in Gurgaon was called off on Thursday night following a deal brokered by Haryana Chief Minister Bhupinder Singh Hooda between the workers and the management.

As part of the deal, MSI will reinstate all the sacked 11 workers and take a lenient approach on enforcing no-work-no-pay rule of eight day's salary cut for every single day of the strike.

On the other hand, the worker's have conceded to the management's demand of not allowing the formation of a second union in the company.

"Agreement has been signed and workers have decided to call off the strike. They will resume work from Friday", Haryana Labour Secretary Sarban Singh said.

He said the company has decided to reinstate all the 11 sacked employees and a disciplinary inquiry will be initiated against them.

Sources privy to the development said the formula was worked out after Hooda met MSI top executives, including Managing Director and CEO Shinzo Nakanishi, last evening.

Company officials could not be reached for comments.

As the strike continued for the last 13 days, the company lost production of 12,600 units valued at about Rs 630 crore.

The shares of the company today fell 1.74 per cent at close at Rs 1,189.45 apiece on the Bombay Stock Exchange.

Under the deal to end the strike, the management agreed to reduce the no-work-no-pay rule of eight day's salary cut for every single day of the strike to three days and it can be reduced further to just one day depending on the conduct and productivity of the workers at the plant in the next few months, said sources close to the development.

The workers, on the other hand, agreed that they will not press for the management's recognition for a new union.

CPI and AITUC leader Gurudas Dasgupta, who had met Hooda several times in the past 10 days, said the agreement will have no reference to the management's decision of not allowing trade union activities at the plant.

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

Currently, the company has one recognised union – Maruti Udyog Kamgar Union which is dominated by workers at the Gurgaon plant.

Retaining the contract labourers for the two upcoming new units inside the Manesar complex was another demand.

While a company spokesperson said only about 600 people were on strike, MSEU General Secretary Shiv Kumar claimed at least 2,000 workers were on the sit-in stir at the plant.

Cracking the whip, the company had fired 11 workers last week for allegedly inciting others to go on strike.

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

Dasgupta said so far there has been no incident of violence and the workers have been "united, responsible and patient, which is remarkable".

"We also congratulate all trade unions of Gurgaon-Manesar area that rallied behind the agitating Maruti workers at the Manesar plant," he added.

A striking worker said, "We have just heard that all our demands are met. The 11 terminated workers are taken back. We will start work from Saturday after taking a day's rest on Friday."

Commenting on the outcome, CITU Haryana State President Satvir Singh said, "The management will take back all the 11 workers with a pending enquiry against them. The company has also promised not to victimise any employee."

The company, however, will implement 'no work, no pay' policy and the workers have also agreed to that, he added.

"The formation of a new union is completely between the workers and the labour department. The agreement has hence not mentioned anything about recognising a new union," Singh said.

He said the seven worker representatives, who have signed the agreement are also the representatives of MSEU and hence the "company has indirectly accepted the union".

Reacting to the development, AITUC Haryana State Secretary Suresh Gaur said, "This is a historic win for the workers in the region as well as the country. Maruti has never taken back any employee, whom it had sacked."

"During the three-month strike in 2000-2001, the company had sacked hundreds of workers and none of them have been taken back yet...," he added.

Meanwhile, Singh said the workers in about 65 factories in the Gurgaon-Manesar industrial belt have withdrawn their hunger strike on June 17 and the two-hour tool-down strike on June 20.