Maruti strike enters 4th day, revenue loss hits Rs 100 cr
The workers strike at Maruti Suzuki India Ltd's Manesar factory entered its fourth day on Tuesday with no signs of a reconciliation as neither the workers nor the management are willing to back down.autos Updated: Jun 08, 2011 00:05 IST
The workers strike at Maruti Suzuki India Ltd's Manesar factory entered its fourth day on Tuesday with no signs of a reconciliation as neither the workers nor the management are willing to back down.
Around 600 workers struck work on Saturday afternoon demanding recognition of their newly formed union, Maruti Suzuki Employees Union. The company said it would not allow any other union besides the one it already has (Maruti Udyog Kamgar Union) though it indicated it was open to restructuring the same to cater to the needs of the workers at Manesar. Production remained crippled on both shifts on Tuesday.
Maruti had also retrenched 11 workers on Monday who were leading the protests.
But the expelled workers were not evicted from the factory premises.
"We are in constant negotiations with the representatives ... (of workers)," said a top Maruti official involved in the talks. "We are trying to talk them out of it. These things take time."
Maruti has already suffered a production loss of 3,000 cars at a rate of Rs 40 crore a day, revenue loss is now over R100 crore. A protracted battle with the workers could have an impact on the company sales and affect the launch of the new Swift and Dzire produced in the plant.
"We are hopeful that an amicable solution would be found soon but if the strike continues, then it will affect our sales and increase especially the waiting period on our diesel cars," said RC Bhargava, chairman, Maruti Suzuki India Ltd.
With neither party backing down so far, the deadlock has an uncanny resemblance to the 3 month long strike Maruti suffered between October 2000 and January 2001.