Maruti Suzuki India stopped production at its Manesar facility on Monday. The company asked workers to sign a ‘good conduct bond' before entering the factory premises following alleged quality issues.
“The management wants us to sign an undertaking that we will not indulge in any union-related activities. Our application for union formation, too, has been rejected by the Haryana Government. The company does not want us to submit a fresh application,” a Maruti Suzuki worker told Business Line .
There was heavy security around the plant, after the premises were sealed, with the company suspending 10 workers and dismissing five others. Services of six trainees have also been discontinued, sources said.
A company official said workers had been indulging in sabotage. There was a go-slow, causing quality problems last week. This was directly harming customer interest and trust, he said. Asked when production would resume, he said, “It is difficult to specify how soon or how late this can happen.”
Workers said they were firm on their demand for reinstatement of the sacked employees and withdrawal of the good conduct bond, applicable only to the 950 permanent workers.
The apprentice workers have been asked to report to the factory on September 1, while those on contract have been asked to report to their contractor. On allegations of sabotage, Mr Dharamveer, a worker, said, “Some management-supported people are doing this to weaken our labour movement. The company did not even give us a notice of the lockout.”
Mr D. L Sachdeva, National Secretary, AITUC, said, “Terminating workers without enquiry and trying to strangle their right to strike tantamounts to unfair labour practice. Legally it may not be a lockout, but technically making the entry of workers inside the factory conditional amounts to lockout”, he said.
The Manesar plant makes 600 cars in two eight-hour shifts every day. The revenue loss per day would amount to roughly Rs 40 crore. The factory produces new Swift, A-Star and SX4.
Maruti's Rs 5 shares ended flat at Rs 1,080 on the BSE.
In June, workers at the Manesar plant struck work for 13 days demanding recognition of a new union. The company reported a production loss of 13,400 cars valued at Rs 460 crore.