The emergence of a new leadership among the workers at Maruti Suzuki's Manesar plant, with similar demands for the recognition of a new union, could mean that the carmaker's woes have now come a full circle.
The only reason for comfort for the company this time though is that the workers have promised no third party affiliation.
This comes after last Thursday when Maruti had expected to close the labour issue after bidding goodbye to 30 workers, allegedly among the leaders of the workers' strike that initially began in June this year. Sent off with severance packages reportedly of around Rs 16 lakh each, this was to be the last chapter in the company's recent labour strife after the tripartite agreement (with the Haryana Government) was signed on October 21.
New union
Sources close to the development said that the workers have now made a minor change to the name of the proposed new union – Maruti Suzuki Workers' Union from Maruti Suzuki Employees' Union – and have already applied to the Haryana Labour Department for the same. The new leaders appointed are Mr Ram Mehar Singh as president and Mr Sarabjit Singh as the new general secretary.
“We sent in the application on Friday and are in talks with the company for our new union. We felt betrayed by what our earlier colleagues did, but one has to move on as this is the only way ahead for both our and the company's benefit. They are (Maruti) saying that they are fine with the union as long as it is independent – but they've given such assurances before,” a worker said.
Losses
A Maruti Suzuki spokesperson said that the company has received written information of the new application and is reviewing it.
The company has forgone around Rs 2,500 crore of revenue this year after losing production of about 83,000 units across the three-phased strike that began in June. Losses suffered at the supplier end are over and above this.
Labour laws
Industry experts said that the company may agree to this new union if there is no third-party or a political affiliation involved – a major contention in the new union demand the last time round.
“I don't think the company will give in and it is possible that the problems may erupt again. This time round both sides will have to do better. It is unfortunate for a Japanese company with strong labour practices to face such issues – they will remember this for a long time,” a senior sector analyst with a leading consultancy said.
Another analyst said that these problems will continue if labour laws of the country are not changed, especially since most employers are worried of outside control in their workers' unions.
“This time they will have to create confidence and improve communication. The convincing will have to happen both ways,” the analyst.