The recent deadly violence at Maruti Suzuki’s Manesar plant, which led to the total shutdown of the production there, is likely to take its toll on the contractual workers working at factories of component suppliers of Maruti. While the suppliers are already in pressure due to slowdown in economy and shrinking margins, the lockout of production at the company’s mega manufacturing plant at Manesar will further force them to reduce their manpower.
Speaking to ET on the matter, an auto component maker’s senior official said, "If there is prolonged lockout at Maruti's Manesar plant, there is no doubt that there would be lay-offs of contract workers in the ancillaries."
The auto component manufacturers hire more and more contractual workers when there is a ramp-up of manufacturing. However, the number of contractual workers goes down when there is a decrease in production.
In a recent statement given to ET, Mr. Vinnie Mehta, Executive Director at Automotive Component Manufacturers Association of India (ACMA), said, "This lockout is happening against the backdrop of an overall market slowdown. Maruti has redefined the automotive landscape in Indian, particularly in the Gurgaon-Manesar belt, and a lot of component makers are dependent on it."
