Auto News

Strike at Manesar plant enters sixth day

By Motortrend India Staff   |   09 June,2011

The strike at Maruti Suzuki’s plant in Manesar town of Haryana entered its sixth day on Thursday with talks between the workers and management failing to resolve the deadlock over the creation of a second workers’ union.

“Though the talks are going on, our stand is clear. The strike is illegal as no intimation was given to us,” Maruti Suzuki India chairman R.C. Bhargava said. He added that some government agencies, including Haryana’s labour commission, were supporting the management.

According to him, the company had suffered a production volume loss of around 5,400 cars till Thursday, including 600 units on the first day of the strike on Saturday. The total loss has been pegged at around Rs.180 crore.

“Our losses are currently pegged at around 5,400 cars since Saturday,” he said, adding that the halt in production will have a short-term impact. “Currently, dealers have enough stock for some 28 days of petrol-segment cars, while a short-term effect may be felt for some diesel variants, which in itself is only 20 percent of our entire portfolio,” he said.

The company’s facility at Manesar produces the company’s bestseller hatchbacks and sedans like the Swift, Swift Dzire, A-Star and SX4.

The majority of the automobile giant’s production takes place at its remaining three plants in Gurgaon district.

According to another Maruti official, the strike has the support of around 2,000-odd workers, out of whom 11 were sacked Monday for demanding recognition of a separate workers’ union.

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