The mayhem that took place in the third week of July 2012 at Maruti Suzuki’s Manesar production facility has lead it to a lockout and has eventually hit the auto ancillary units in Haryana. The strife between the ungratified workers and the management turned deadly, leaving one official dead and several others injured. This act of industrial violence has received severe criticism throughout the country especially from the National Human Resource Development (NHRD).
Maruti Suzuki, India’s largest car manufacturer, points out to a variety of auxiliary units that have been affected by the shutdown of their Manesar plant. The factories manufacturing subsidiary products are now bound to reduce their production and workforce due to the sudden lockout at Maruti’s Manesar facility. Over 200 auxiliary industries of Haryana supply a large number of products to Maruti Suzuki’s Manesar plant. As stated by some of these supporting industrial units, the demand for their products since lockout has been reduced by 50 per cent and they are compelled to reduce their manpower to avoid future losses.
Sanjeev Kumar Pathak, Purchase Manager at India Japan Lighting Private Limited, a Bawal-based ancillary unit, said, “Since the lockout at Maruti's plant, the demand for our ancillary products has dropped by 60%, resulting in a loss of about Rs 42 lac each day.” He said that the company’s inventory has started increasing and now it has to stop supply from the vendors. India Japan Lightning Private Limited manufactures headlamps, tail lamps and other automobile lighting equipments, which are supplied to Maruti. He further added, “We have cut our working days to three in a week, from six earlier, due to the drop in demand. As a result, employees will hence be paid half the salary, Pathak said, adding, "Besides, we have cut down 30% of our casual staff due to the crisis.”
An executive from a Manesar-based ancillary unit said, “One of our five units is not producing anything. The workers are utilised for training programmes and some other activities.” This industry manufactures 75 per cent of its products for Maruti’s production facility. Vinnie Mehta, Executive Director at Automotive Component Manufacturers Association of India, said, “It is a serious situation as production at most of the units, which are supplying to Maruti's Manesar plant, will come to a standstill.”
The shut down at the Maruti’s Manesar plant has also severely impacted other dependent industries, such as transport companies and logistics firms, among others. Currently, there seems to be no solution to the trouble created by the lockout and these auxiliary firms can do nothing but wait for the production to restart in the Manesar unit of Maruti Suzuki.
