Maruti confirms Manesar plant re-opening on August 21

New Delhi, August 16, 2012: In line with Autocar Professional’s news story last week which revealed that Maruti Suzuki India would re-open its Manesar plant in mid-August, the carmaker has officially announced today that the lock-out at the plant will be lifted on August 21. Re-start of production would be gradual and will be taken up in phases. Production will commence with 300 workers with a daily output of 150 cars mainly of the Swift and Dzire models.

The company had declared a lock-out on July 21 following large-scale violence by workmen on July 18, in which a general manager died and 96 supervisors and managers were injured. Following an investigation, the police have arrested 154 workers, including 12 Union leaders, and started legal processes to bring the guilty to book. More arrests may follow the police investigations, which are continuing.

To enhance the security of MSIL employees, the State government is taking a number of steps. These include the setting up a 500-strong Rapid Action Force of police personnel near the Manesar area, with 100 in each shift at the Manesar plant. There will also be 40 Personal Security Officers to ensure safety of managers, supervisors, and workers while commuting to and from home to office along with security arrangements at the residences of the employees who are vulnerable to attack.

Furthermore, MSIL has created a special force of 100 security guards, including ex-servicemen, in addition to the existing security force, to enhance security within the plant.

On the labour front, chairman RC Bhargava has said that Maruti has sacked 500 of its regular workers out of the 1,528-odd regular workers deployed at Manesar. Recruitment to regular positions from the remaining 1,869 contract workers at the plant will commence from September 2 and will be done directly by the company and not through contract agencies as has been the case so far. Thereafter, their salaries will be on par. “At present, there is not much difference in their monthly salaries as contract workers earn Rs 11,080 and the entry level regular worker gets Rs 12,500 with the increase in the salary of the regular workers depending on their experience and seniority,” he added.

The almost month-long lock-out has cost Maruti dear: accumulated losses of around Rs 2,700 crore due to non-production of 1,600-1,700 cars per day. The Manesar plant manufactures the popular Dzire and Swift models, as also the A-star and SX4.

Maruti Suzuki suppliers await return to normalcy at Manesar