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Journalism of Courage
New Delhi, January 9: After three tortuous months, the strike at the country’s largest auto-maker, Maruti Udyog Limited, came to a peaceful end late Monday night.
Interestingly, while Maruti’s management bent a bit by agreeing to take back 41 of the 80 suspended/sacked employees, the unions have been forced to accept major management conditions, and restraints on their hitherto unbridled power. The union’s leader Mathew Abraham had repeatedly insisted that he would not allow workers to sign a Good Conduct Undertaking the management was insisting upon. Under Monday’s agreement, however, the union has accepted the management’s incentive scheme and agreed to sign the agreement — stating they will abide by the rules of conduct as specified by the management.
Interestingly, the company’s performance didn’t suffer too much during the agitation. Not only did Maruti maintain its usual production levels (it has a 65 per cent market share), its JD Power quality ratings consistently improved during the strike — when supervisors, former interns and workers from Maruti’s component suppliers filled in for the strikers. Maruti also launched its prestigious model Alto during the strike, signalling clearly that the strike wouldn’t put a brake to business. Perhaps why, during the past three months, large sections of the unions broke away, and came back to work.
The workers’ union had demanded that the management review its incentive scheme, revoke all suspensions and dismissals and allow workers to enter the factory premises without an undertaking of good conduct.
However, the union was forced to bite dust when the management refused to budge from its stated position. Even the workers’ nearly four-week long, all night dharna at the Udyog Bhavan failed to impress either the ministry or the Maruti management.
Under the agreement, 39 of the 80 suspended or terminated employees will not be taken back and for them the `law will take its course’. These sacked employees, who include union leaders like G.K. Walia (Treasurer) have been charged with serious misconduct like slogan shouting and leading workers on moves like go-slow within the company.
Of the remaining 41, which includes 21 trainees, will have to sign an individual bond of good conduct before they are allowed inside the factory gates.
Jagdish Khattar, managing director of MUL, exulted: “It only establishes that the management has the right to manage.”
MUL employees Union general secretary Mathew Abraham told PTI that the workers have accepted the incentive scheme and had even agreed to the sacking of 39 workers.
As per the peace agreement, signed in the presence of Heavy Industry Ministry officials, the Union has also agreed to co-operate fully with themanagement in restoring normalcy and improving productivity and competitiveness.
The bone of contention between the management and workers had been the incentive scheme offered by the company, which essentially means additional payment linked to performance. According to the management scheme, effective from October onwards, workers will be paid Rs 33,000 per month after two years as incentive payment. However, if MUL were to accept the Unions proposal, the cost per employee per month would have gone up to Rs 42,000. Moreover, an element of quality has also been incorporated in the incentive scheme and will no longer be merely based on the number of cars produced.
Maruti wins hand down
* Union to sign a Good Conduct Undertaking
* 39 employees sacked, including top union leaders
* Management’s original incentive scheme accepted. Workers to get Rs 33,000 per month after 2 years as against union’s demand for Rs 42,000
