Maruti Udyog Limited: Industrial Unrest of 2000-2001(A)

Abstract

MUL, a joint venture between the Government of India and Suzuki Motor Corporation of Japan, known for its pro-labour policies, was embroiled in a dispute in mid 2000, with its workforce of more than 5500 employees. Agitation was taking place at a time when MUL’s market share had quickly declined from 82.8 per cent to 61 per cent in the past three years. The employees were agitating for increased compensation, despite the company’s considerably reduced profitability, recently. Right from its inception, there had never been any instance of a major industrial dispute, until that moment. The dispute was called a “strike” by the media and management, while the union leaders called it an “agitation”. Top management, civil authorities, media and Suzuki played an important role in the dispute resolution. The lack of support at crucial moments by political leaders, to union leaders, was visible during the study. Eventually, the management was able to lead the employees to co operate and end the agitation. Now, it is a challenging task before the management to lead employees towards identification with SIL and commitment to the company and its causes.