Maruti Suzuki’s word is worthless!Stop attack on workers’ rights:Reinstate all contract workers

Press Release, 4 October 2011, New Delhi: With the signing of the tripartite settlement on 1 October 2011 Maruti Suzuki management had agreed to take back all 3000 workers except for the 44 regular workers including the 15 workers who were summarily dismissed but the dismissals were converted to suspensions. However, when workers reported at the gate on the morning of 3 October 2011 to rejoin work, the Maruti Suzuki management refused to allow the contract workers, who supported the illegally locked out regular workers of the Maruti Suzuki Manesar Plant, to resume work. The management had explicitly and unambiguously agreed to the resumption of work by all workers in clause 5 of the settlement. This is a means for the management to retaliate and penalise the contract workers for supporting their fellow workers and refusing to cross the line and work in the plant during the illegal lockout, thereby defeating management’s strategy to break the united resolve of the workers to fight for decent working conditions and the right to form and join a union of their choice! The Maruti Suzuki management is pursuing a policy of retaliation to break the resolve and unity of workers and not allow stability of the workforce. The NTUI condemns Maruti Suzuki management for attacking the most vulnerable section of its workforce.

The NTUI led a call for a National Day of Action in Solidarity of the Maruti Suzuki workers on 22 September 2011 that was marked by protests of several hundred workers outside Maruti Suzuki establishments in Delhi, Kolkata, Mumbai, Chennai and several other cities. There was and continues to be a groundswell of support for the Maruti Suzuki workers among the working class who will not hesitate to rally again to the support of the workers against continuing attacks by Maruti Suzuki management and demand accountability from the Labour Department and Government of Haryana for failing to protect workers’ rights.

Maruti Suzuki loses reputation and emerges as a Bad Employer

The Maruti Suzuki management today faces tremendous loss of reputation, including in the business press, for its continuing high handedness and blatant violations of law in dealing with the just demands of its workers. The fact that the Maruti Suzuki management had to take back all workers after 34 days of an illegal lockout is a victory for the workers and a testimony of the workers’ strength and unity. The Maruti Suzuki management attempted a pre-emptive strike against the workers in the mistaken belief that they would buckle under pressure. However, this strategy was ineffective and today even the good conduct bond that the workers have signed is no more than a face saver for the Maruti Suzuki management and it can no longer be used as a pretext to penalise or victimise the workers.

Though this was a 34 day long lockout, the Maruti Suzuki management got away with a no work no pay principle and an additional one day wage cut imposed on the workers. However, after two rounds of industrial disputes, one of the “show case” stories of India’s industrialisation has been shown up as a bad employer. The Maruti Suzuki management has taken yet another unilateral action, in a series of unilateral actions, by refusing to allow the contract workers to resume work, thereby, in effect, continuing its lockout at the Manesar factory against a section of the workforce. This will not help the company regain its lost reputation, but will instead reflect on its inability to deal with workers issues in a productive manner.

Workers’ Unity Forces Maruti Suzuki Management to Retreat

The support of the local community with the workers of Maruti Suzuki who submitted a collective memorandum to the Deputy Commissioner of Gurgaon and the united resistance of all categories of workers of Maruti Suzuki forced management to retreat from the malafide intention of summarily terminating 33 workers and it was forced to reinstate 18 trainees and convert 15 summary dismissals of regular workers into suspensions. Management was also forced to agree to the principle of no victimization against any worker and to take back all workers.

Yet, the Maruti Suzuki management was able to precipitate a retaliation when the workers and their union was not adequately prepared. The workers of Maruti Suzuki and their union need to build strategies with sufficient depth, to prepare fully for impending attacks by the Maruti Suzuki management, that are bound to materialise.

Government of Haryana and Labour Department fail to protect vulnerable workers

The Government of Haryana and the Labour Department need to immediately ensure that the contract workers are allowed to resume work or prosecute the company for violating the tripartite settlement and treat this section of workmen as being locked out and consequently prohibit the lockout from 1 October 2011. This Labour Department was quick to reject the union registration application of the Maruti Suzuki Employees Union on frivolous and illegal grounds. However, neither the Labour Department nor the Government of Haryana have shown the same alacrity in holding the Maruti Suzuki management accountable for violating the settlement within 48 hours of having signed it or the earlier settlement of 16 June 2011. Inaction by the Government of Haryana and the Labour Department will vindicate the widely held viewpoint among workers that goverment is in collusion with managements.

The unwillingness of the Labour Department to protect workers’ rights is evident in the lack of recognition of the unfair labour practices committed by the Maruti Suzuki management. There is also no recognition that workers have collectively lost more than Rs 3 crores in wages for the month of August and a similar amount during the industrial dispute in June. And yet the workers have put up a magnificent resistance twice, for 47 days over four months, against the might of a global multinational corporation with tremendous political and economic power.

Truce and Stalemate

The two rounds of industrial action have resulted in a temporary truce. It has not resulted in any significant change in the underlying balance of force which has resulted in a continuing stalemate. There has been no decisive movement forward. There is still no acceptance of a unionised workforce and a system of democratic industrial relations. Blatant violations of the Right to Association and the Right to Collective Bargaining through a series of unilateral actions is still the operating paradigm of the Maruti Suzuki management. The workers also remain united, in their demand for an independent union and reinstatement and regularisation of contract workers.

This dispute has however effectively foregrounded the core issues affecting the industrial relations of the country, namely, lack of Right to Association and Right to Collective Bargaining and the issue of increasing contractualisation of employment.

Contractualisation is an attack on workers’ rights

Over the years, Maruti Suzuki has gradually changed its workforce composition and created a small core of permanent employees and a growing body of workforce under temporary contract who are employed under discriminatory working conditions. This weakens the bargaining power of the workers and allows the company to reduce the workforce in a period of economic downturn. Today, about 85% of Maruti Suzuki’s 3,000 workers at Manesar are contract workers. Maruti Suzuki has also established a salary structure and incentive packages that are strongly biased against workers who are under temporary contract. The NTUI condemns Maruti Suzuki’s unequal treatment towards contract workers and upholds the right of equal pay for equal work and the right to security of tenure as regular worker. The NTUI condemns Maruti Suzuki’s use of these discriminatory practices as a method to divide workers and marginalise contract workers. However, the workers of Maruti Suzuki have stalled this management strategy too through their determined and unwavering unity that is a source of inspiration to workers throughout the country.

Moment of introspection for the Trade Union movement

Except for few nationwide actions, the trade union movement has shown a lack of shared understanding and effective strategy to make the workers’ struggle at Maruti Suzuki a decisive trade union battle to change the orientation of the labour policies of companies and government. In order to move forward and build support for the Maruti Suzuki workers the trade union movement needs to build coordination in both the Gurgaon-Manesar-Dharuhera belt and at the national level

The NTUI demands that the Maruti Suzuki management allow resumption of work by all the contract workers immediately and the NTUI calls upon the Labour Commissioner and the Chief Minister of Haryana to ensure that the rights of the most vulnerable workers, the contract workers, are protected by law.

The struggle of all workers of Maruti Suzuki is a part of our common struggle and the NTUI is committed to stand in solidarity with them and work together with them towards victory.