Maruti Suzuki
CHALLENGE: LABOUR MANAGEMENT RELATIONS & PRODUCTION QUALITY Maruti has been in the news for almost a year now due to large number of strikes, also resulting in lock out of the factory sometimes due to labour unrest. The company says that soon afterwards, there are large scale incidents of sabotage—such as doors falling off completed cars.
HRM REASONS
WAGES & OTHER BENEFITS: Differential wages payment system for the similar work performed for almost similar number of hours. A contract worker is paid Rs 7000 a month and a permanent worker’s pay is around Rs 18,000; Other than salary, a contract worker is not entitled to medical benefits that a permanent worker gets, or the bus service, again which only the permanent worker can use. Yet, there is apparently little difference in the specific nature of the job for both categories. Discrimination is to the extent that even the dresses for both the categories of employees are different. This sense of discrimination hampers the working efficiency of the employees thus affecting the overall production quality of the maruti’s product
WHAT NEEDS TO BE DONE: The Company can continue to keep the contract workers as it is in the benefit of the company as the company has not to worry about the labour in time of slump or even when there is a high demand for the labour. But the company HR Policies should enforce the system where there is no discrimination of the wages between both the categories of employee. As the primary motivation of people working at this level is money. Or the company should reduce the number of working hours for the people getting fewer wages so that the harmony and satisfaction sustain among each employee working in the manufacturing unit of the company. And the sense of discrimination could be reduced.

WORKING CONDITIONS : Going through the various interviews of the