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Maruti Suzuki India Limited(formerly known as Maruti Udyog Ltd.) is a publicly listed
automaker in India. It is a leading four-wheeler automobile manufacture in South

It was founded in 1981 by Sanjay GandhI, though the actual production

commenced only in 1983

Suzuki Motor corporation of Japan holds a majority stake in the company.

It was the first company in India to mass-produce and sell more than a million cars.

Maruti Suzuki is one of the India's leading automobile manufacturers and the
market leader in the car segment.

Products: Maruti Alto, Maruti Grand Vitara XL-7, Maruti Gypsy King, Maruti Omni,
Maruti Suzuki SX4, Maruti Swift, Maruti Versa, Maruti Vitara, Maruti Wagon-R, Maruti

Employees 12,900 (2015)


The case is about MANAGING LABOR RELATIONS under the subject Human
Resource Management

It highlights the industrial unrests of Suzuki along with its causes and problems.

Started with a derogatory remark made by a supervisor on a worker.

Resulted in severe clash, destroying the properties of the company and thrashing
senior level officers.

According to the experts, the main cause behind this disruption was change in
leadership style

Due to differences of Indian and Japanese management ways, it resulted labor

unrests because 40% of contract based workers were paid less with high work
pressure than the regular workers.

Question & Answer

Ques 1: What are the lessons one can learn from the Maruti Suzuki case
and other similar cases of industrial dispute?
Ans. The above case has taught a great lesson from industry perspective.
Being an organization, it is its sole duty to maintain a healthy relationship
between an employee-employer as the productivity of an organization
increases by the hard work of both of the parties. Maruti could have done
the following to prevent from occurrence of the dispute:

There should be time to time discussions between the management

and the union regarding any decision taken

No decision should be enacted unless both the parties agree

If there is to be some changes in management styles, it should

be notified beforehand to union and proper training is to be given

Proper wages should be given on time without any deduction

until there is some valid reasons to do so

No worker should be made to work more than eight hours a day

Management should always cooperate with the employees

regarding their justified demands and should try to solve those as
soon as possible

Employees should be given a good working environment with all

the facilities and should ensure safety.

Ques 2: As management representative suggest some ways to curb

industrial unrest?
Ans: Going through the case in detail, it is concluded that the
company did not take much concern about its labors as a result of
which the dispute occurred. From this incident, every industry
should follow the following Acts for its upliftment and maintaining
good union-management relationship:

Contract Labour (Regulation and Abolition) Act, 1970

Workmens Compensation Act, 1923

Minimum Wages Act, 1948

Factories Act, 1948

Industrial Disputes Act, 1947

Dispute Settlement Machineries like Works Committee,

Conciliation Officer, Board of Conciliation, Labor Court, Tribunal.


Communication and Feedback among workers and management.

Involvement of workers while setting goals and formulating policies.

Respect to All

Five strategies to be employed for retaining employees-






Employment as per requirement