A POPULAR HR CHIEF BURNED TO

DEATH: PEOPLE MANAGEMENT

DYNAMICS AT THE INDIAN
SUBSIDIARY OF SUZUKI Ltd.
Prepared By: GROUP 10
Atisha Singh – 19P193
Depanshu Jindal – 19P197
Rohan Hassija – 19P216
Priya Gupta – 19P208
Virendra Agarwal – 19P234
Gaurav Mugdiya – 19P239
Introduction
 The case is about MSIL (Maruti Suzuki India Ltd.)
 The incident occurred on July 18, 2012 and it was the worst incident in the
company’s industrial relations (IR) history.

 IR violence at its Manesar plant had resulted in the plant human resources
(HR) chief being burned alive.

 In addition nearly 100 managers, including Japanese expatriates, had been

injured.

 The incident resulted in Haryana state putting 147 workers on murder trial.
Maruti Suzuki India Ltd.
 A subsidiary of Suzuki Motor Corporation of Japan
 India’s largest passenger car manufacturing company
 Established in 1981 as Maruti Udyog Ltd. (MUL) as a central public sector enterprise
(PSE).

 In 1983 there was a joint venture between MUL and Suzuki, Japan which started
production of cars in its Gurgaon (Haryana state) plant.

 In 2002 it was privatized giving the control to Suzuki; and Indian government got
out of it.

 MSIL’s market share had come down from 80 per cent in 1980s to 42.1 per cent in
2013-14. It was still the market leader.
Background of the Gurgaon plant
 There was a major power struggle between the plant union and the
management during 2000-01; but the union lost that battle; state agencies
played role in the defeat of workers. Since then the union became quite
cooperative with the management.

 Values promoted by HR strategy

 Work-life balance

 Passion for work

 Company loyalty.
Start of Manesar Plant
 Manesar plant started operations in 2007

 MSIL implemented the same HR policy for it as followed in the Gurgaon plant.

 The Manesar plant workers were much younger (all Gen Y), internet savvy, and
conscious of employee rights.

 However, with less experience, they received lesser total emoluments as compared
to the Gurgaon workers, in general.

 They also began to perceive stressful working conditions, tight work schedules,
indifference of supervisors/managers, and other IR issues.
Formation of a separate union
 Around May 2011, activist Manesar workers decided to form and register a separate
trade union for improving their lot.

 Instead, the management wanted them to become members of the Gurgaon plant
union. But they refused as they perceived that Gurgaon union was controlled by the
management.

 The workers went on strike three times during June to October, 2011, mostly due
to MSIL committing unfair labour practices (ULPs) related to their attempts of
independent union formation and resultant issues.

 The workers succeeded in registering an independent union on 29th February 2012.

 Critical support for their struggle from contract workers in the plant, which built
greater pressure on the management. The union leaders promised that they would
help the contract workers in their regular absorption.
Principal Causes of the Problem
 The new union was very aggressive and remained in conflict with the
management from the very beginning.
 Workers complained about harsh working conditions
 Difference in wages of the workers
 Assaults on management by the workers which led to their suspension
further aggravated the issue.
 There was issue of effective communication among the workers
 The top management was Japanese and did not know much about the
Indian culture.
Role of state
 The earlier government hired a very expensive advocate to make a case
against the worker to please private business and crush trade union
activities.

 The new govt. removed that advocate and showed compassion to the
workers especially those who were not involved in Dev’s death.

 NDA government wanted to send signals of enforcing strict industrial

discipline in the state to attract capital for the state’s better industrial
development. The defense counsel too was planning appeals against all
convictions in the High Court.
Future People Management Strategy
HR policies should be formulated considering the local work culture
There should be impartial implementation of HR policies
There should be proper appraisals given to the employees
Constant communication and resolution of problem at the initial stages
can help prevent such unrest in the future
Lessons learnt

 The relationship between the company and the employee is more than just a
exchange of worker’s labour and wages

 Hiring should a key focus to see the fit for the company.
 A new location might have a different scenario, simply implementing the same
policies from the other location might now yield the desired results.

 Employees should have a sense of ownership and belongingness for company

 Employees should not feel alienated from the management
 The power distance between the employees and the employer should be minimal
and easily accessible to share the concerns
Thank you