Maruti Workers Attack Managers, Seize Control

Workers at the Maruti Suzuki plant in Manesar have attacked managers and supervisors and damaged equipment, shutting down production for a third consecutive day. They have now taken control of the auto plant.

“The plant is effectively captive in the hands of striking workers who are bent upon violence,” said the company’s statement. It described the situation at the factory as “grave.”

Maruti Suzuki faces a near-complete shutdown of operations if the labor unrest continues, especially now that workers from Suzuki Powertrain India (SPIL), a key component supplier, joined the action at the Manesar factory. The situation could produce a parts shortage forcing suspension of operations at the firm’s main plants at Gurgaon.

SPIL supplies diesel engines as well as transmissions for K-series gasoline engines, the main components of all Maruti Suzuki vehicles. Affected models are Alto, Swift, A-Star and Estilo compacts and Dzire and SX4 sedans. The only models that can still be produced would be the Omni van, Eeco multiutility and the M800. But due to the limited demand for these models, continuing plant operations would become uneconomical.

“It is a grave situation,” Maruti Suzuki chairman RC Bhargava told Times of India. The situation is described as a “stalemate”, with no immediate end in sight.

Disruption in supplies from SPIL has already cut output at the three plants of the Guragaon factory to 1,800 vehicles Monday from around 2,800 cars on a normal day.

On September 16 the company had had to shut down the Gurgaon plants when SPIL workers had joined the strike. Maruti is being hit hard by the strikes that come as competition is increasing and rivals are introducing new models during a festive season of peak demand.