INDUSTRIAL UNREST

IN INDIA

WITH
SPECIAL REFERENCE TO MARUTI CASE

SARITA 201193 SHEETAL 201112

INDUSTRIAL UNREST
Industrial

unrest is the term used to describe activities

undertaken by the workforce when they protest against pay or conditions of their employment.
Actions

may include strikes, sit- ins , slowdowns or work-

to-rule. Historically, riots also took place, such as the action taken by the Luddites during the Industrial Revolution, and other machine-wrecking outbreaks.

The definition of Industrial disputes is as follows:

According to Section 2(k) of the Industrial Disputes Act, 1947

"industrial dispute" is defined as,

"Any disputes or differences between employers and

employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person."

Industrial dispute is disagreement and difference between two disputants, namely, labour and management. This disagreement or difference could be on any matter concerning them

individually or collectively. It must be connected with

employment or non-employment or with the conditions of labour. Whenever industrial disputes arise, workers generally resort to one or more of the following weapons, namely, strike, boycott, picketing and gherao.

THE WEAPONS USED IN INDUSTRIAL DISPUTES WITH THE HELP OF A DIAGRAM:

WEAPONS OF LABOUR WEAPONS OF MANAGEMENT

Boycott

Employers Association

Picketing

Lock out

Gherao

Termination of service

STRIKE

When workers collectively cease to work in an industry, it is known

as strike. Strike can be defined according to the Industrial Disputes Act, 1947 as:

"It means a cessation(discontinuance) of work by a body of persons

employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to

continue to work or to accept employment".

(2) Boycott. The workers may decide to boycott the company in two ways. Firstly by not using its products and secondly by making an appeal to the public in

general. In the former case, the boycott is known as primary and in the latter

secondary If is a coercive method whereby the management is forced to

accept their demands.

(3)Picketing. When workers are dissuaded (put-off)from work by stationing

certain men at the factory gates, such a step is known as picketing. If picketing does not involve any violence, it is perfectly legal.

(4)Gherao. Gherao in Hindi means to surround. The workers may gherao the
members of the management by blocking their exits and forcing them to stay inside their cabins. The main object of gherao is to inflict-physical and

mental torture to the person being gheraoed and hence this weapon disturbs
the industrial peace to a great extent.

WEAPONS USED BY THE MANAGEMENT

1. Employers' Association. The employers may form their unions to collectively oppose the working class and put pressure on the trade unions. 2.Lock -out. An employer may close down the place of employment temporarily. Such a step is technically known as lock -out. It is the reverse of a strike and is

a very powerful weapon in the hands of an employer to pressurize the workers

to return to the place of work. According to the Industrial Disputes Act, 1947, "lock-out means the closing of a

place of employment or the suspension of work, or the refusal by an employer

to continue to employ any number of persons employed by him. 3. Termination of Service. The employers may terminate the services of those

workers who are on strike by blacklisting them. Their lists may be circulated to
other employers so as to restrict their chances of getting employment with those employers.

FISHBONE MODEL OF LABOUR UNREST

CAUSES OF INDUSTRIAL DISPUTES

1. Economic Cause: These causes may be classified as:

Demand for increase in wages on account of increase in all-India Consumer Price Index for industrial workers. Demand for higher gratuity and other retirement benefits.

Demand for higher bonus.

Demand for certain allowances such as:

House rent allowance

Medical allowance
Night shift allowance Conveyance allowance Demand for paid holidays. Reduction of working hours. Better working conditions, etc.

2. Political Causes: Various political parties control Trade unions in India. In many cases, their leadership vests in the hands of persons who are more interested in achieving their political interests rather than the interests of the workers. 3. Personnel Causes: Sometimes, industrial disputes arise because of personnel problems like dismissal, retrenchment, layoff, transfer, promotion, etc. 4.lndiscipline: Industrial disputes also take place because of indiscipline and violence on the part of the workforce. The management, to curb indiscipline and violence, may resort to lock outs. 5.Misc. causes: Some of the other causes of industrial disputes can be:

Workers' resistance to rationalization, introduction of new machinery and change of place Non- recognition of trade union Rumors spread out by undesirable elements Working conditions and working methods

Lack of proper communication

Behavior of supervisors Inter trade union Rivalry etc.

STRENGTHENING INDUSTRIAL RELATIONS

Progressive Management out look Strong & Stable Unions Mutual Trust. Mutual Accommodation(Adjustment) Sincere Implementation of Agreements Workers participation in Management Sound personnel policies Government's Role.

MARUTI UNREST

Maruti Suzuki India , a subsidiary of Suzuki Motor Corporation, is India's largest automobile company by volume. The strike at Maruti Suzuki began months ago, after regular workers at its factory at Manesar, in northern Haryana state, demanded the reinstatement of 44 suspended colleagues who weren't taken back after a 33-day impasse with the management ended Oct. 1. The local unit of Suzuki Motor Corp. on 9th oct 2011 dismissed 10 employees, suspended as many and terminated five trainees who it alleged were involved in violence at the Manesar plant.

Workers from three other plants at Manesar owned by Suzuki Motorcycle India Pvt. Ltd., Suzuki Motor Powertrain India Ltd. and Suzuki Castings Ltd. have also halted work in support of their peers at Maruti. The unrest at Suzuki Powertrain led to a complete halt in supplies of diesel engines and transmissions to Maruti, forcing the auto maker to curtail car production at its Gurgaon factory, also in Haryana Meanwhile, Coal India Chairman Nirmal Chandra Jha said the workers are demanding an annual bonus of 23,500 rupees, against the 17,000 rupees paid already by the management despite any substantial increase in coal production.

These frequent strikes washed away 60% of Marutis profit in the July-September quarter but analysts fear that the impact could be more pronounced in the three months through Dec. 31. More than 40,000 of the 83,000 units lost were in October alone. This strike also brought down the shares of Maruti substantially.

This strike was going onthen on 4th Nov 2011 Friday, the Economic Times reported that something similar took place behind the scenes at the Maruti factory. The report puts the spotlight back on two workers, Sonu Gujjar and Shiv Kumar, who spearheaded a movement against the alleged malpractices at Maruti and to set up a new union that would better represent the workers interests.

Mr. Gujjar and Mr. Kumar reportedly quit there jobs in exchange for 4 million rupees (about $81,300) each an amount that otherwise wouldve likely taken them more than a decade to earn. Mr. Gujjar and Mr. Kumar were among the 30 workers suspended by Maruti for indiscipline last month. The other 28 workers got 1.6 million rupees each as part of the final settlement, the report said. That is in sharp contrast to their colleagues from the Maruti factory at Manesar, on the outskirts of New Delhi. They forfeited 74-days worth of wage to push through with their fight: they went on strike for a total of 59 days so far since June.

The report claims both Mr. Gujjar and Mr. Kumar cut a sweet deal for themselves leaving the other 1,500 in the lurch. Now, they not only lost their salaries but the management has declined to allow a separate union.

For Maruti, Mr. Gujjar and Mr. Kumar had become an eye sore due to their leading involvement in the labor agitations. Their exit could help put production back on track at the Manesar factory, where the company has lost an estimated output of 83,000 vehicles since June. As Maruti management heaves a sigh of relief, workers from Manesar are feeling betrayed. They are now considering filing a criminal case against Mr. Gujjar and Mr. Kumar if any monetary transaction is proven. The report, if proved, is set to create a trust deficit among the workers, who will likely also struggle with a leadership vacuum.

BIBLIOGRAPHY

http://online.wsj.com/article/SB100014240529702034997045766 22690204234926.html http://www.scribd.com/doc/17607845/Industrial-Disputes http://blogs.wsj.com/indiarealtime/2011/11/04/did-workersleading-unrest-at-maruti-get-a-payout/?mod=google_news_blog http://in.reuters.com/article/2011/10/14/idINIndia59896420111014 http://in.reuters.com/article/2011/10/30/idINIndia60195220111030

Thank you!!!