Half of India sunk into darkness as three grids in the North, East and North Eastern part of the country tripped. An estimated 600 million were plunged into darkness for more than 24 hours in what has infamously been now recorded in India’s name as the world’s biggest power blackout. Trains were jammed, traffic lights disrupted, factories stopped, and whole life came to a standstill for more than half of the nation. But most of the cricket crazy nation complained that this power disruption should not have happened atleast on the day when India very rarely registered an away-series win at Sri Lanka!
Maruti Suzuki’s violence and the stories emanating from the incident are most unfortunate and equally dark. The repercussions and far greater than estimated and may indicate a wider labour crisis in India that may hamper it’s image in the global market.
On one hand the statement of the S. Raju HR head at Maruti’s Manesar plant is heart-rending and send chill down one’s spine. The kind of riot & arson that happened in the those few hours on the fateful Thursday is horrifying tale of madness and labour extremism. The fact that this incident could have been prevented and the GM (HR) could have been alive but for the lack of agility of the police is shocking and numbing.
On the other hand, other stories that are emanating from the worker’s side show a huge disengagement amongst workers arising out of long brewing discontent. I quote from a recently published article:
"Mukesh Kumar Yadav says he’s struggling with medical bills after he lost two toes in an accident this month at a Maruti Suzuki India Ltd. (MSIL) plant. He’s a contract worker who earns a fraction of a permanent employee and isn’t entitled to on-the-job injury compensation.
“We do not matter to them and they have no duty toward us,” said Yadav, who takes home about 7,000 rupees ($126) a month as a forklift driver at Maruti Suzuki’s Manesar plant. “Maruti just gets us to work and gives us money.”
Prior to the violence erupting July 18, the Manesar plant had already seen three production stoppages in the past year, as workers went on strike demanding the right to form a union, higher pay and better working conditions.
While Yadav didn’t take part in the July 18 riot that shuttered the plant and led to the death of a manager, his story helps show why discontent was brewing among workers. Other carmakers should take note of worker complaints in the run-up to the violence at India’s largest carmaker because wage disparity is prevalent across the auto industry, said Ammar Master, an analyst at LMC Automotive.
“This combination of lower economic benefits and perceived inequality is a ticking time bomb waiting to explode at the slightest altercation,” said Master, who’s based in Bangkok. “This is going to be a problem for everybody unless they address the issues. If these labor issues are not addressed, it’s going to take away investors from India.”
India’s series win at the next door neighbour’s place and one bronze medal in London Olympics so far (with an average of 1 in a billion) may give us the illusion of light at the end of a long dark tunnel. And we may again say … Jai Ho…
Showing posts with label Maruti Suzuki. Show all posts
Showing posts with label Maruti Suzuki. Show all posts
Wednesday, August 1, 2012
Friday, March 9, 2012
Employees help Maruti Suzuki turnaround its fortunes
Maruti Suzuki is back!
After being hit by incessant strikes last year and suffering big blows on car sales last year, Maruti Suzuki seems to be back in reckoning after claiming the top three car brands positions this year, in terms of sales this year. The top three car brands by sales in India (2012) are Maruti Alto, Maruti Swift and Maruti Wagon R. Wagon R has pushed Hyundai i10 to number four position. Maruti is now expecting its news Dzire to razzmatazz the competitors even more.
So what turnaround the company’s fortunes? Diesel version of Swift, Wagon R? Possibly…but that could have happened last year as well. That did not happen because the production was halted several times at its Manesar plant, in the northern part of the country, due to strikes. Infact Maruti had to ultimately shift some of its Swift Diesel production to its Gurgaon plant. The bookings of the diesel versions at the dealers were running into long pending list and things were hardly working for the company. The original demand of the striking workers at the Manesar plant was formation of a separate union than the existing Maruti Udyog Kamgar Union (MUKU). The workers at the Manesar plant felt that the exiting union was primarily interest representation of the workers at Gurgaon and hence they demanded a separate union that could address to their concerns, one them being wage-hike. The management of the company opposed the new union formation tooth and nail and the deadlock continued for several weeks.
Interestingly the new union has now been formed by the workers at Manesar plant and the company’s management has not helped the workers register their new union but also has recognized the same. The union is also planning to take-up wage revision with the management. The present wage of workers at Manesar plant is around Rs. 18000/- per month that includes Rs. 8000/- as incentive. The resulting peace has presumably altered the sales figures of the company.
What led to this sudden change of heart on part of the company’s management? But then what was the logic in opposing the new union in the first place, if later the company were to accept it, in fact help forming it? Second, if it was a fair demand then why did the management oppose it?
I am sure they realized that such stance was not only being detrimental for the company in the form of low sales but more importantly they were losing the advantage to the competitors like Hyundai etc. but the Maruti story clearly shows:
1. People, and not anything else, are the real competitive advantage for a company. That is not to suggest that employees have an infinite right to demand but the legitimate needs & demands must also not be negated.
2. HR myopia is most damaging for any company. The workers with their union at Manesar plant shall always remember the ‘struggle’ more than the management’s help in getting them register. Had the company realized it in the first instance itself not only the loss could have been avoided but bad PR and bruises on employee engagement could also have been avoided.
After being hit by incessant strikes last year and suffering big blows on car sales last year, Maruti Suzuki seems to be back in reckoning after claiming the top three car brands positions this year, in terms of sales this year. The top three car brands by sales in India (2012) are Maruti Alto, Maruti Swift and Maruti Wagon R. Wagon R has pushed Hyundai i10 to number four position. Maruti is now expecting its news Dzire to razzmatazz the competitors even more.
So what turnaround the company’s fortunes? Diesel version of Swift, Wagon R? Possibly…but that could have happened last year as well. That did not happen because the production was halted several times at its Manesar plant, in the northern part of the country, due to strikes. Infact Maruti had to ultimately shift some of its Swift Diesel production to its Gurgaon plant. The bookings of the diesel versions at the dealers were running into long pending list and things were hardly working for the company. The original demand of the striking workers at the Manesar plant was formation of a separate union than the existing Maruti Udyog Kamgar Union (MUKU). The workers at the Manesar plant felt that the exiting union was primarily interest representation of the workers at Gurgaon and hence they demanded a separate union that could address to their concerns, one them being wage-hike. The management of the company opposed the new union formation tooth and nail and the deadlock continued for several weeks.
Interestingly the new union has now been formed by the workers at Manesar plant and the company’s management has not helped the workers register their new union but also has recognized the same. The union is also planning to take-up wage revision with the management. The present wage of workers at Manesar plant is around Rs. 18000/- per month that includes Rs. 8000/- as incentive. The resulting peace has presumably altered the sales figures of the company.
What led to this sudden change of heart on part of the company’s management? But then what was the logic in opposing the new union in the first place, if later the company were to accept it, in fact help forming it? Second, if it was a fair demand then why did the management oppose it?
I am sure they realized that such stance was not only being detrimental for the company in the form of low sales but more importantly they were losing the advantage to the competitors like Hyundai etc. but the Maruti story clearly shows:
1. People, and not anything else, are the real competitive advantage for a company. That is not to suggest that employees have an infinite right to demand but the legitimate needs & demands must also not be negated.
2. HR myopia is most damaging for any company. The workers with their union at Manesar plant shall always remember the ‘struggle’ more than the management’s help in getting them register. Had the company realized it in the first instance itself not only the loss could have been avoided but bad PR and bruises on employee engagement could also have been avoided.
Saturday, January 7, 2012
Kiss & Hug versus Real-Deals
Influenced by ‘KBC’, the Indian version of ‘Who Wants to be Millionaire’, I and my son often play our own version of the quiz-show at home. The other day, it was first my turn to be on hot seat and Arnab was the quizzer. I was wondering what would he give me as ‘prize money’ and thought maybe he will fake it like kids do with some torn pieces of paper as currency. But he turned-out to be smarter than I thought he was and when I answered the first question correctly he announced with flair that I had won one kiss & a hug from him. The he followed this by showering the ‘prize’ on me immediately, as a ‘signed cheque’. He asked me five more questions and every time he kept increasing the kisses & hugs much to my amusement and our happiness.
Then came my turn to be the quizzer, his turn to be on the hot seat. I thought I shall copy him and give him kisses & hugs as he keeps on answering the questions correctly. But this time again, he turned-out to be smarter than I thought. When he answered the first question correctly and I told him that he had won a kiss & a hug he took the same but said that this won’t suffice as the ‘prize money’. He wanted some real deals every time he gave a correct answer. So I had to give him a ‘Calcium Sadoz’ tablet, a Hajmola (tasty digestive chew), Mentos and few Polo Mint-rings in the subsequent questions and his correct responses that followed. He however did not miss-out on my kisses & hugs, as well.
Expectations from everyone are not the same. From someone it may be just and kiss & a hug whereas from someone else it may be some real-deals as well, in addition to the kiss & hug. Engagement is as much on the rational plane as much it is on the emotional plane.
Maruti Suzuki, India’s largest carmaker seems to be doing just that! The year 2011 saw the carmaker being jolted by series of labour strikes at its Manesar plant in North India. The worker’s demand for fair-treatment and for a separate union, than the already existing labour union at the Gurgaon plant, was opposed by the management. The face-off between the management and the workers reached a flash-point when the management demanded the worker to sign a good-conduct bond. However after losing out on considerable sales and market-advantage, the management seems to be finally learning its lessons. It has done a complete U-turn on its earlier stance. Now the Maruti management is actively following-up with the state government’s labour department for the verification and registration of the new union formed by the workers at the Manesar plant. In addition they are also revising the wages of the workers and currently are in the wage-settlement process. The Management initiative to get the new union registered is more of a ‘kiss & hug’ whereas the wage-revision is more like the ‘real-deal’.
Then came my turn to be the quizzer, his turn to be on the hot seat. I thought I shall copy him and give him kisses & hugs as he keeps on answering the questions correctly. But this time again, he turned-out to be smarter than I thought. When he answered the first question correctly and I told him that he had won a kiss & a hug he took the same but said that this won’t suffice as the ‘prize money’. He wanted some real deals every time he gave a correct answer. So I had to give him a ‘Calcium Sadoz’ tablet, a Hajmola (tasty digestive chew), Mentos and few Polo Mint-rings in the subsequent questions and his correct responses that followed. He however did not miss-out on my kisses & hugs, as well.
Expectations from everyone are not the same. From someone it may be just and kiss & a hug whereas from someone else it may be some real-deals as well, in addition to the kiss & hug. Engagement is as much on the rational plane as much it is on the emotional plane.
Maruti Suzuki, India’s largest carmaker seems to be doing just that! The year 2011 saw the carmaker being jolted by series of labour strikes at its Manesar plant in North India. The worker’s demand for fair-treatment and for a separate union, than the already existing labour union at the Gurgaon plant, was opposed by the management. The face-off between the management and the workers reached a flash-point when the management demanded the worker to sign a good-conduct bond. However after losing out on considerable sales and market-advantage, the management seems to be finally learning its lessons. It has done a complete U-turn on its earlier stance. Now the Maruti management is actively following-up with the state government’s labour department for the verification and registration of the new union formed by the workers at the Manesar plant. In addition they are also revising the wages of the workers and currently are in the wage-settlement process. The Management initiative to get the new union registered is more of a ‘kiss & hug’ whereas the wage-revision is more like the ‘real-deal’.
Tuesday, January 3, 2012
Engagement Velocity
A typical day, the ‘strike-day’ in a particular southern state that has a history of strikes, the scene is all but predictable. The members of the political party that is staging the strike outside the secretariat start the strike on a quiet note. Slowly they start piling in front of the Secretariat building. The constabulary is standing on the other side, with the front row composed of fresh recruits who have been ragged enough by the seniors and are raring to let loose the batons that they are wielding on anything mortal. Then some stones are thrown by the demonstrators. Before the entire verbal order by the constabulary in-charge can be completed the ‘itching front-row enforcers’ let loose their sticks on the 'stoning protesters'. By that time ‘Varun’ arrives to the scene. Varun is the water cannon used by the constabulary to disperse protesters. The next thing you can see is that the demonstrators are floating and are being swept away in a pool of water. At times, if tear gas shells are fired at the demonstrators, there are cadres within them (those wearing masks) whose job is to block the shells and throw them back at the constabulary. The constabulary is seldom wearing masks and the next thing you see is a part of the ‘originators’ jumping on their own missiles, teary-eyed. The whole scene is so predictable and repetitive that it appears both sides know their ‘roles’ too well and in no time everything is over and pridefully ‘nothing’, absolutely ‘nothing’ has been achieved.
The year 2011 had been a year of strikes- the big Maruti strike, the Bosch strike, the Coal India strike, the endless Air India strikes and more…However it is still not clear what most of these strikes were directed at or what they aimed to achieve. For instance the Maruti strike started on a demand to form a separate union by workers at a particular plant, continued on workers disagreement to sign a ‘good-conduct bond’ instructed by the management and failed to achieve anything substantial except causing the company to lose on critical sales especially of diesel cars at a time when total car sales were not looking particularly bright (YoY). The Bosch strike started with workers protesting against proposed outsourcing of ancillary activities by the management, with accusations by workers against management’s changing stance and retraction from promise of not doing so! The strike ended without any agreement and the case has been referred for adjudication. The Air India strikes by pilots, ground-staff have been riddled with controversies in the backdrop of despicable performance by Air India. In short, in all these cases the disengagement was clearly staring at the world. It was more than obvious that a severe lack of trust and low engagement was the bigger reason than any other quoted by the workers or the management for these strikes. They appeared to be too orchestrated and both the sides taking historical roles rather than trying to understand each other or converse with each other.
The year 2011 had been a year of strikes- the big Maruti strike, the Bosch strike, the Coal India strike, the endless Air India strikes and more…However it is still not clear what most of these strikes were directed at or what they aimed to achieve. For instance the Maruti strike started on a demand to form a separate union by workers at a particular plant, continued on workers disagreement to sign a ‘good-conduct bond’ instructed by the management and failed to achieve anything substantial except causing the company to lose on critical sales especially of diesel cars at a time when total car sales were not looking particularly bright (YoY). The Bosch strike started with workers protesting against proposed outsourcing of ancillary activities by the management, with accusations by workers against management’s changing stance and retraction from promise of not doing so! The strike ended without any agreement and the case has been referred for adjudication. The Air India strikes by pilots, ground-staff have been riddled with controversies in the backdrop of despicable performance by Air India. In short, in all these cases the disengagement was clearly staring at the world. It was more than obvious that a severe lack of trust and low engagement was the bigger reason than any other quoted by the workers or the management for these strikes. They appeared to be too orchestrated and both the sides taking historical roles rather than trying to understand each other or converse with each other.
Direction is always relative to something – Instead of saying that the church is to the north of capitol or to the south of the supermart, if we say that the church is in the west, you will never find one, would you? Similarly engagement is always relative to something. Engagement to job, to the leadership, to the contributions, to the idea-sharing & creation, to the career-options and more, on the super base of organization-culture of trust & openness. And, hence, any misdirected engagement effort, which is not clear on objective it seeks to achieve, shall not yield anything. The onus of this does not always lie with the management alone but also with the employees. Else, both the parties shall continue to ‘act’ their ‘roles’, without practically achieving anything worthy.
Just to reinforce in the new year - Engagement is like Velocity, which is a Vector entity - must have speed as well as direction!
Wednesday, October 12, 2011
Dust Strikes Trust
Three strikes at three major manufacturing companies - Maruti Suzuki, Bosch and Coal India are worrisome.
The strike at Maruti Suzuki's Manesar plant is spreading into ancillary units and is becoming a major threat not only for the company but also for the entire NCR industrial belt. The bone of contention has moved from worker's demand for a separate union to management's demand that workers sign a good conduct bond and now again to worker's demand that the contactual labours be taken back into fold.
In case of Bosch the strike by the workers at Bangalore plant that started couple of days back turned ugly yesterday when executives were prevented from entering the factory premises by MEA (Mico Employees Association). The bone of contention in this issue is that workers are opposing the management's decision to outsource certain anicillary functions. The workers also accused the management of breaking its promise not to outsource any such activity.
A one day strike by the Coal India workers around the country resulting a huge loss on October 10th is another problem brewing hot. Thebone of contention in this case is the incentive payout. The workers are demanding more incentive and state that it is much less compared to the dividend doled-out to the shareholders. The workers have threatened that if the issue is not resolved soon then this strike would come back.
On closer introspection the common thread in all these conflicts appears to be severe lack of trust between the employees and the management. Every other leader preaches the need of building a culture of trust. But so many times such terms remain as mere esoteric concepts rather than practice. Many even brush-off such issues as very academic concept. Looking at all these three cases, I find severe trust-deficit at the heart of all such disputes, in addition to everything else. Trust is fundamental to engagement and one of the building blocks. In its absence no structure shall sustain. The responsibility of building the trust is mutual but the first onus lies on the employer.
The strike at Maruti Suzuki's Manesar plant is spreading into ancillary units and is becoming a major threat not only for the company but also for the entire NCR industrial belt. The bone of contention has moved from worker's demand for a separate union to management's demand that workers sign a good conduct bond and now again to worker's demand that the contactual labours be taken back into fold.
In case of Bosch the strike by the workers at Bangalore plant that started couple of days back turned ugly yesterday when executives were prevented from entering the factory premises by MEA (Mico Employees Association). The bone of contention in this issue is that workers are opposing the management's decision to outsource certain anicillary functions. The workers also accused the management of breaking its promise not to outsource any such activity.
A one day strike by the Coal India workers around the country resulting a huge loss on October 10th is another problem brewing hot. Thebone of contention in this case is the incentive payout. The workers are demanding more incentive and state that it is much less compared to the dividend doled-out to the shareholders. The workers have threatened that if the issue is not resolved soon then this strike would come back.
On closer introspection the common thread in all these conflicts appears to be severe lack of trust between the employees and the management. Every other leader preaches the need of building a culture of trust. But so many times such terms remain as mere esoteric concepts rather than practice. Many even brush-off such issues as very academic concept. Looking at all these three cases, I find severe trust-deficit at the heart of all such disputes, in addition to everything else. Trust is fundamental to engagement and one of the building blocks. In its absence no structure shall sustain. The responsibility of building the trust is mutual but the first onus lies on the employer.
Saturday, September 17, 2011
Bond sans Adhesive
Can signing a good conduct undertaking be a guarantee of good conduct by employees? Maruti Suzuki's strike at Manesar plant has reached a flash-point where both the management and workers seem to be unrelenting on the issue of the 'good conduct bond'. The management is adamant that the workers have to sign the bond and the workers refuse to do so.
The problems at Manesar plant came to surface few months back when workers at Manesar plant went on strike demanding a separate union then the existing one at the Gurgaon plant, which they alleged to be a management's union. the strike which lasted 13 days resulted in a huge loss for the company. Presently too the losses are accumulating. The Swift(diesel) bookings have been reportedly stopped by the dealers as the existing booking's delivery date shall stretch up to April 2012. And with car sales dipping, the company can ill-afford the small sliver-lining in the form of demand for diesel cars.
Anyways, coming-back to the core bone of contention ‘the good-conduct bond’- In the first place why should a company require its people to behave in a certain way only after they sign a good conduct bond? It is almost like asking your spouse to sign a bond that she would smile every time she opens the door for you when you return from your work? Shouldn’t that happiness reflect on its own? And if that joy of companionship is not there can someone be forced to smile? In other words that willingness on the part of employees to exhibit good conduct must be an automatic outcome of what goes on in the company rather than a forced one.
Second what is a company’s intention in insisting its employees to sign such a bond? Does it make the company look like focused on a policy of ‘hire and fire’? I think it does.
And finally, what shall the company do if a worker misbehaves after signing the good-conduct bond? Will it sue or sack or simply pest? Is it a tool to effect punishment or really a way to ensure good behaviour?
Respect, commitment, discipline can never be demanded; one can only illicit them voluntarily from others. This voluntarism is at the heart of engagement. The company who has a celebrated HR head is losing its touch on the pulse of people and slowly may be the people as well. Will it result in them also losing the people who buy their cars (customers) – I think they have already started to…
The problems at Manesar plant came to surface few months back when workers at Manesar plant went on strike demanding a separate union then the existing one at the Gurgaon plant, which they alleged to be a management's union. the strike which lasted 13 days resulted in a huge loss for the company. Presently too the losses are accumulating. The Swift(diesel) bookings have been reportedly stopped by the dealers as the existing booking's delivery date shall stretch up to April 2012. And with car sales dipping, the company can ill-afford the small sliver-lining in the form of demand for diesel cars.
Anyways, coming-back to the core bone of contention ‘the good-conduct bond’- In the first place why should a company require its people to behave in a certain way only after they sign a good conduct bond? It is almost like asking your spouse to sign a bond that she would smile every time she opens the door for you when you return from your work? Shouldn’t that happiness reflect on its own? And if that joy of companionship is not there can someone be forced to smile? In other words that willingness on the part of employees to exhibit good conduct must be an automatic outcome of what goes on in the company rather than a forced one.
Second what is a company’s intention in insisting its employees to sign such a bond? Does it make the company look like focused on a policy of ‘hire and fire’? I think it does.
And finally, what shall the company do if a worker misbehaves after signing the good-conduct bond? Will it sue or sack or simply pest? Is it a tool to effect punishment or really a way to ensure good behaviour?
Respect, commitment, discipline can never be demanded; one can only illicit them voluntarily from others. This voluntarism is at the heart of engagement. The company who has a celebrated HR head is losing its touch on the pulse of people and slowly may be the people as well. Will it result in them also losing the people who buy their cars (customers) – I think they have already started to…
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