Maruti Suzuki Limited (MSL) is remembered by all of us for the world-class cars it manufactures. But of late, the company is making news for its dubious labor management practices. The company, which sells more cars in India than in Japan, benefits in multiple ways by doing business in India. Eighty percent of the spare parts used in its cars are manufactured by its vendors by employing low-priced workers, and 70% of the workers in MSL factories are contract workers earning less than one-third of the salary of regular workers. Unfortunately, the company does not consider it important to provide proper service conditions to workers. India has a progressive economic policy, and it tolerates the ill-treatment of workers for the sake of employment generation. Had it been the USA or Europe, the operations of MSL would have been closed down by the government for the misconceived labor policies. A plethora of factors are contributing to the degeneration of people management practices in MSL, starting with greed for more profit, lack of concern for labor problems, the unprofessional approach of managerial staff, and superstitious beliefs of the employer.
Understanding Professionalism
Sometimes patients die because of medical negligence, which is proved by other doctors through autopsy. Occasionally, Chartered Accountants collude in financial scams like Harshad Mehta or Satyam Computers, which are detected by other Chartered Accountants. In either case, the doctors or Chartered Accountants look at the issue dispassionately in search of truth rather than protecting the professional colleagues responsible for the lapses. Human Resource (HR) Managers claim themselves to be professionals, and they have professional associations like the National HRD Network to promote professionalism among them. Almost every month, there are HR conferences of one kind or another happening all over the country to promote professionalism in HR. Every year, new HR propositions like HR business partner, HR competencies, talent management, and so on are advocated to project HR as a profession. However, the question that remains to be answered is how far HR managers have matured to be professionals. The doctors or chartered accountants responsible for the lapses would have lost their jobs or had their licenses revoked. But HR Managers in MSL actually get promotions and pay hikes after every incident of labor unrest. For example, prior to the three prolonged strikes by workers in 2011 at MSL, Mr. S.Y. Siddiqi was General Manager (HR, IT, and Admin), and after the strikes, he was promoted to Chief Operating Officer. The work at the Manesar factory of Maruti Suzuki Limited (MSL) was stopped from 18th July 2012 to 21st August 2012 due to the failure of the human resource management function, which resulted in the death of a general manager and injuries to around eighty managers by the vengeance of frustrated workers. While everyone has condemned the attack and expressed condolences to the deceased manager's family, no one from the HR profession has tried to find out whether there was anything wrong with the HR department of MSL. Being a large organization, MSL may think that it is capable of earning profit even by closing down the factory for months or by allowing its managers to be killed at the workplace, but it is also important to be careful about the workers who have nothing to lose. The only aspiration most of the workers have for themselves is to go to work for earning their livelihood. When such a fundamental aspiration has been snatched away by the management by falsely implicating them for the misconduct they did not commit, the workers are left with the only option of expressing anger at management.
Poisoning the Benevolence
The parent company of MSL is Suzuki Corporation of Japan. Japanese are known for benevolent HR practices like lifetime employment, decent working conditions, and reasonable salaries. But HR managers in MSL take advice from international consultants by paying huge fees. The five pieces of advice repeatedly given by such consultants are: (1) contract workers can be employed in any number and for any jobs, (2) it is sufficient and lawful if contract workers are paid minimum wages fixed by the government, even though it is much less than the wages earned by regular workers, (3) unionization of workers should be discouraged at any cost, (4) unionization of workers can be avoided by having a large number of contract workers, and (5) payment of fair wages and providing humane working conditions are not important if labor department officers of the government are properly managed. While these consultants fail to understand the socio-cultural dimensions of labor unrest, benevolent organizations like Suzuki Corporation are branded in India as exploitative employers.
Motives Behind the Violence
Motives of all kinds were attributed by the management, government, and the mass media, beginning with infiltration of militants, involvement of Naxalites, and the role of business rivals. Thank God, the only motive not attributed was the involvement of a neighboring foreign country. The workers have alleged that on the evening of 18th July 2012, MSL brought around 100 goons from outside to attack the workers, which has not been officially denied by the MSL management. The workers have further stated that when they confronted the goons in self-defense, it led to the violence. While the motive of workers to indulge in sporadic violence is yet to be fully investigated, the question at this point in time is whether it was ethical on the part of any organization to use goons to deal with employees. The workers' allegation of outside goons entering the factory is equally difficult to believe since no attack or injury of a serious nature on the workers has been reported. The 18th July 2012 violence at MSL is a reasonably well-planned attack by the workers, and they are surely aware of the adverse consequences like criminal prosecution and termination of service. But it is difficult to understand why MSL management closed all the peaceful options for resolving the conflict. In the morning, there was a fight between a worker belonging to a scheduled caste and a supervisor, in which it was alleged that the supervisor insulted the worker by using derogatory language against his caste, and the worker, in turn, slapped the supervisor. When both of them are prima facie guilty of misconduct, the management has punished only the worker by suspension and spared the supervisor. The Maruti Suzuki Workers' Union leaders have peacefully negotiated throughout the day for the revocation of suspension, but management has taken a rigid stand not to negotiate in the matter. When the situation was going out of control, the management orally informed the union leaders that the suspension order would be kept in abeyance. Workers wanted this oral information in writing, and management refused to give it in writing, which finally led to the violence. If management was sincere in its words, it was prudent to give it in writing to avoid the violence.
Trust and Negotiation
There is a complete lack of trust, authenticity, and transparency between the management and workers in MSL because the management has deviated from its promises not once but thrice during the year 2011, which resulted in three prolonged strikes. Trust can be built by openness in communication, fairness in decision-making, and devotion to honoring commitments; but the managers in MSL seem to have forgotten all of them. When there is a conflict, it is best resolved by negotiating a solution. The basic rule of negotiation is the flexible approach of giving something to get something in return so as to create a win-win situation for all the parties. But in MSL, every time a negotiation takes place, the management gets something from workers like a good conduct bond and so on, but it does not give anything to the workers as per the promise. When workers are repeatedly duped in the name of peaceful negotiation, the faith is totally lost.
Lack of Expertise
It is alright to outsource labor law compliance work, but industrial relations or dealing with workers is a core activity of HR managers, which ought to have been given due importance. But HR managers at MSL are preoccupied with the holy topics of Indian HR such as 360-degree feedback, assessment centers, psychometric testing, and HRD audit. The way MSL managers are dealing with workers clearly shows their lack of expertise in the labor relation framework of the Industrial Disputes Act 1947, Industrial Employment Standing Orders Act 1946, and Trade Union Act 1926. Unfortunately, MSL takes advice on labor matters from international HR consultants by spending crores of rupees when the consultants themselves do not understand the legal framework. This lack of expertise has resulted in a series of mistakes by HR managers at MSL, some of which are discussed below.
Dubious HR Role
The job description of HR managers at MSL does not require them to seek either letters from the workers not to join any union or to seek a good conduct bond for participating in lawful strikes. But this is what they did during the year 2011. When Shivakumar and Sonu Gujjar started mobilizing workers to form a lawful union of workers, the HR managers took written undertakings from many workers not to join the union. Workers have given such undertakings for fear of victimization by management, but the feeling they carried about the HR department was bitter. The job description of HR Managers at MSL does not require them to manage workers by continuously violating labor law. For example, the Contract Labour (Regulation and Abolition) Act 1970 states that if the nature of work performed by regular workers and contract workers is one and the same, then contract workers shall be paid salary and allowances on par with regular workers. But the salary of contract workers in MSL is one-third of the salary of regular workers, which has become a rallying point for the united struggle of regular workers and contract workers. The job description of HR managers at MSL does not require them to have HR practices contrary to the law of nature. The law of nature is the unwritten code of God and not the one made by parliament. According to this law, regular work shall be carried out by regular workers. It would have been fair and reasonable to have around 20 to 25 percent contract workers to deal with economic recession and business fluctuation, but MSL has a whopping 70% contract workers to perform regular work, and hence the labor turmoil at MSL can be termed as anger expressed by the god of nature. The HR department of MSL is extremely good at managing the national-level trade union leaders affiliated with various political parties. As a result, no trade union leader of eminence has seriously questioned the labor policy of MSL. In fact, some of these leaders even advised the MSL workers during the 2011 strikes to stop the agitation. While MSL workers realized that such advice is against the interest of workers, they started mobilizing themselves by identifying leadership within their rank and file, like Shivakumar and Sonu Gujjar. The job description of HR managers at MSL does not require them to destabilize the lawfully formed union of workers by a carrot and stick approach. At the end of the third successful strike in the year 2011, the management did not revoke the suspension of twenty-one office bearers and executive committee members of the Maruti Suzuki Employees' Union, including Shivakumar and Sonu Gujjar. All of them were charge-sheeted for major misconduct on the one hand, and at the same time, an enticing financial package ranging from Rs.16,00,000 to Rs.40,00,000 per head was offered in return for peaceful resignation from service. Caught between the devil and the deep sea, these workers finally resigned from service in November 2011 by accepting the financial package. While such a huge financial package to destabilize workers' unions was unheard of in the history of the Indian labor movement, the workers at MSL learned three important lessons from this episode, namely: (1) the management did not want to conduct an inquiry to prove the allegations mentioned in the charge sheet since the allegations are false and baseless; (2) had the charges been true, the workers should have motivated the HR managers to take a lenient view, but here management is motivating the workers to accept financial settlement; and (3) the best way to earn an enormous amount of money being a worker in MSL is by organizing strong unions to go on strike. The job description of HR managers at MSL does not require them to sponsor the formation of a union by workers. But a senior-level HR manager at MSL on 19th July 2012 has given a media statement from his hospital bed which states, "What sin did I commit? In fact, I took these workers to the registrar of trade union and I gave the money for registration of the union, but they have in return beaten me badly for all the help I rendered." After sending home all the union leaders of the Maruti Suzuki Employees' Union by paying attractive monetary compensation, MSL should have improved its labor relation practices to remain as a non-unionized organization. But HR managers at the Manesar plant have supported the formation of a new union called the Maruti Suzuki Workers' Union so as to keep its leaders under management control. The Maruti Suzuki Workers Union (MSWU) was formed at the behest of management very recently in March 2012, and in less than four months, such a friendly union has turned violent on 18th July 2012. It clearly demonstrates the kind of dubious labor relation practices prevailing in MSL. After the 18th July 2012 violence, all the leaders of MSWU have been arrested by police and sent to jail, and it is yet to be seen whether MSL will attempt to sponsor the formation of another union of workers or discourage the unionization activities or take a neutral stand.
Defense Mechanism
While people all over the country are shocked at the way things are going wrong in MSL, its HR managers are tactfully behaving to deny the reality. HR head of MSL, Mr. S.Y. Sidiquee, has invited all his HR friends from other industries and made a presentation on 30th July 2012 to highlight the mistakes of MSL workers and to justify all the actions of managers which led to the violence at the Manesar factory on 18th July 2012. The senior-most HR managers of MSL had started writing articles in business magazines and delivering lectures in managerial forums even before the injured managers were discharged from the hospital. These managers are yet to accept the universally accepted fact that progressive labor relation is a science that can be learned and practiced. The company has not accepted responsibility for the safety of its employees at the workplace and hence has not taken action against any managers for the collapse of security measures. Rather, it is holding the frustrated workers responsible for the insecure climate prevailing at the workplace. The top management of MSL has gone one more step ahead. Instead of resolving the basic problems of workers to promote harmonious labor relations, it has started believing in superstition. Hence, religious rituals were performed at the Manesar plant by inviting South Indian Hindu priests from Karnataka to correct the so-called Vaastu problems. The top management now believes that a graveyard and three temples existed at the sites which were destroyed to build the Manesar plant and hence labor unrest can be eliminated by conducting religious rituals.
Misconceived Diversity
It is true that hiring people from all sections of society brings diversity for business advantage, but MSL practices diversity in wrong ways. Even though it hires people from all sections of society, the demarcation lines are clearly drawn. While people belonging to lower social strata of society like scheduled castes and tribes are hired at the worker level along with rural upper castes, the managerial cadre is dominated by the urban elite from New Delhi. This kind of misplaced diversity policy has failed to promote common understanding between managers and workers; rather, it has given birth to social disharmony among its own managers and workers. It is important to note that organizational fabric cannot be strengthened without knowing the socio-cultural undercurrents among individuals and groups.
Taking Revenge
It is not clear whether it is the desire of Suzuki bosses in Japan, the Chairman of MSL in New Delhi, or HR managers of the company to perpetuate the practice of vengeance against workers. The nature and scale of violence clearly show that about 180 workers were responsible for planning and executing the violence at the Manesar plant on 18th July 2012, which is corroborated by police investigation and labor department findings, but the management is summarily refusing to employ more than 500 workers without any charges being proved against them in the inquiry. It is easier to send home these workers with the assistance of the police department, but such an unethical move would cause ugly wounds in the minds of remaining employees who are allowed to work, and every such unjust act of management may be retaliated unjustly by the workers in the days to come. Management and government may brand dismissed workers as bad, but they have already earned a permanent place as martyrs in the minds of remaining employees.
Winners and Losers
MSL has started operations in the Manesar factory with effect from 21st August 2012 by terminating the services of nearly 500 workers. But it is difficult to judge the winners and losers in this battle. The basic reasons for the escalation of this conflict were just three, namely: (1) low wages, (2) poor working conditions, and (3) employing a large number of contract workers. While MSL has retained the first two problems intact, it has come out with a solution that seems workable. Prior to the July 2012 violence, the company had two contract workers for one regular worker, or say a 70:30 ratio. Now MSL has resolved to reverse this ratio by having one contract worker for every two regular workers, which appears to be a partial victory for the workers, but the joy of regular employment may also be squeezed by management offering harsh working conditions and lower wages. Low wages and poor working conditions continue to be the thorns in the way of peaceful industrial relations in the days to come. It is immaterial whether the workers will unionize again or not, but the sooner MSL resolves these two fundamental labor problems, the better its path for progress.
From India, Ahmadabad
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80Understanding Professionalism
Sometimes patients die because of medical negligence, which is proved by other doctors through autopsy. Occasionally, Chartered Accountants collude in financial scams like Harshad Mehta or Satyam Computers, which are detected by other Chartered Accountants. In either case, the doctors or Chartered Accountants look at the issue dispassionately in search of truth rather than protecting the professional colleagues responsible for the lapses. Human Resource (HR) Managers claim themselves to be professionals, and they have professional associations like the National HRD Network to promote professionalism among them. Almost every month, there are HR conferences of one kind or another happening all over the country to promote professionalism in HR. Every year, new HR propositions like HR business partner, HR competencies, talent management, and so on are advocated to project HR as a profession. However, the question that remains to be answered is how far HR managers have matured to be professionals. The doctors or chartered accountants responsible for the lapses would have lost their jobs or had their licenses revoked. But HR Managers in MSL actually get promotions and pay hikes after every incident of labor unrest. For example, prior to the three prolonged strikes by workers in 2011 at MSL, Mr. S.Y. Siddiqi was General Manager (HR, IT, and Admin), and after the strikes, he was promoted to Chief Operating Officer. The work at the Manesar factory of Maruti Suzuki Limited (MSL) was stopped from 18th July 2012 to 21st August 2012 due to the failure of the human resource management function, which resulted in the death of a general manager and injuries to around eighty managers by the vengeance of frustrated workers. While everyone has condemned the attack and expressed condolences to the deceased manager's family, no one from the HR profession has tried to find out whether there was anything wrong with the HR department of MSL. Being a large organization, MSL may think that it is capable of earning profit even by closing down the factory for months or by allowing its managers to be killed at the workplace, but it is also important to be careful about the workers who have nothing to lose. The only aspiration most of the workers have for themselves is to go to work for earning their livelihood. When such a fundamental aspiration has been snatched away by the management by falsely implicating them for the misconduct they did not commit, the workers are left with the only option of expressing anger at management.
Poisoning the Benevolence
The parent company of MSL is Suzuki Corporation of Japan. Japanese are known for benevolent HR practices like lifetime employment, decent working conditions, and reasonable salaries. But HR managers in MSL take advice from international consultants by paying huge fees. The five pieces of advice repeatedly given by such consultants are: (1) contract workers can be employed in any number and for any jobs, (2) it is sufficient and lawful if contract workers are paid minimum wages fixed by the government, even though it is much less than the wages earned by regular workers, (3) unionization of workers should be discouraged at any cost, (4) unionization of workers can be avoided by having a large number of contract workers, and (5) payment of fair wages and providing humane working conditions are not important if labor department officers of the government are properly managed. While these consultants fail to understand the socio-cultural dimensions of labor unrest, benevolent organizations like Suzuki Corporation are branded in India as exploitative employers.
Motives Behind the Violence
Motives of all kinds were attributed by the management, government, and the mass media, beginning with infiltration of militants, involvement of Naxalites, and the role of business rivals. Thank God, the only motive not attributed was the involvement of a neighboring foreign country. The workers have alleged that on the evening of 18th July 2012, MSL brought around 100 goons from outside to attack the workers, which has not been officially denied by the MSL management. The workers have further stated that when they confronted the goons in self-defense, it led to the violence. While the motive of workers to indulge in sporadic violence is yet to be fully investigated, the question at this point in time is whether it was ethical on the part of any organization to use goons to deal with employees. The workers' allegation of outside goons entering the factory is equally difficult to believe since no attack or injury of a serious nature on the workers has been reported. The 18th July 2012 violence at MSL is a reasonably well-planned attack by the workers, and they are surely aware of the adverse consequences like criminal prosecution and termination of service. But it is difficult to understand why MSL management closed all the peaceful options for resolving the conflict. In the morning, there was a fight between a worker belonging to a scheduled caste and a supervisor, in which it was alleged that the supervisor insulted the worker by using derogatory language against his caste, and the worker, in turn, slapped the supervisor. When both of them are prima facie guilty of misconduct, the management has punished only the worker by suspension and spared the supervisor. The Maruti Suzuki Workers' Union leaders have peacefully negotiated throughout the day for the revocation of suspension, but management has taken a rigid stand not to negotiate in the matter. When the situation was going out of control, the management orally informed the union leaders that the suspension order would be kept in abeyance. Workers wanted this oral information in writing, and management refused to give it in writing, which finally led to the violence. If management was sincere in its words, it was prudent to give it in writing to avoid the violence.
Trust and Negotiation
There is a complete lack of trust, authenticity, and transparency between the management and workers in MSL because the management has deviated from its promises not once but thrice during the year 2011, which resulted in three prolonged strikes. Trust can be built by openness in communication, fairness in decision-making, and devotion to honoring commitments; but the managers in MSL seem to have forgotten all of them. When there is a conflict, it is best resolved by negotiating a solution. The basic rule of negotiation is the flexible approach of giving something to get something in return so as to create a win-win situation for all the parties. But in MSL, every time a negotiation takes place, the management gets something from workers like a good conduct bond and so on, but it does not give anything to the workers as per the promise. When workers are repeatedly duped in the name of peaceful negotiation, the faith is totally lost.
Lack of Expertise
It is alright to outsource labor law compliance work, but industrial relations or dealing with workers is a core activity of HR managers, which ought to have been given due importance. But HR managers at MSL are preoccupied with the holy topics of Indian HR such as 360-degree feedback, assessment centers, psychometric testing, and HRD audit. The way MSL managers are dealing with workers clearly shows their lack of expertise in the labor relation framework of the Industrial Disputes Act 1947, Industrial Employment Standing Orders Act 1946, and Trade Union Act 1926. Unfortunately, MSL takes advice on labor matters from international HR consultants by spending crores of rupees when the consultants themselves do not understand the legal framework. This lack of expertise has resulted in a series of mistakes by HR managers at MSL, some of which are discussed below.
Dubious HR Role
The job description of HR managers at MSL does not require them to seek either letters from the workers not to join any union or to seek a good conduct bond for participating in lawful strikes. But this is what they did during the year 2011. When Shivakumar and Sonu Gujjar started mobilizing workers to form a lawful union of workers, the HR managers took written undertakings from many workers not to join the union. Workers have given such undertakings for fear of victimization by management, but the feeling they carried about the HR department was bitter. The job description of HR Managers at MSL does not require them to manage workers by continuously violating labor law. For example, the Contract Labour (Regulation and Abolition) Act 1970 states that if the nature of work performed by regular workers and contract workers is one and the same, then contract workers shall be paid salary and allowances on par with regular workers. But the salary of contract workers in MSL is one-third of the salary of regular workers, which has become a rallying point for the united struggle of regular workers and contract workers. The job description of HR managers at MSL does not require them to have HR practices contrary to the law of nature. The law of nature is the unwritten code of God and not the one made by parliament. According to this law, regular work shall be carried out by regular workers. It would have been fair and reasonable to have around 20 to 25 percent contract workers to deal with economic recession and business fluctuation, but MSL has a whopping 70% contract workers to perform regular work, and hence the labor turmoil at MSL can be termed as anger expressed by the god of nature. The HR department of MSL is extremely good at managing the national-level trade union leaders affiliated with various political parties. As a result, no trade union leader of eminence has seriously questioned the labor policy of MSL. In fact, some of these leaders even advised the MSL workers during the 2011 strikes to stop the agitation. While MSL workers realized that such advice is against the interest of workers, they started mobilizing themselves by identifying leadership within their rank and file, like Shivakumar and Sonu Gujjar. The job description of HR managers at MSL does not require them to destabilize the lawfully formed union of workers by a carrot and stick approach. At the end of the third successful strike in the year 2011, the management did not revoke the suspension of twenty-one office bearers and executive committee members of the Maruti Suzuki Employees' Union, including Shivakumar and Sonu Gujjar. All of them were charge-sheeted for major misconduct on the one hand, and at the same time, an enticing financial package ranging from Rs.16,00,000 to Rs.40,00,000 per head was offered in return for peaceful resignation from service. Caught between the devil and the deep sea, these workers finally resigned from service in November 2011 by accepting the financial package. While such a huge financial package to destabilize workers' unions was unheard of in the history of the Indian labor movement, the workers at MSL learned three important lessons from this episode, namely: (1) the management did not want to conduct an inquiry to prove the allegations mentioned in the charge sheet since the allegations are false and baseless; (2) had the charges been true, the workers should have motivated the HR managers to take a lenient view, but here management is motivating the workers to accept financial settlement; and (3) the best way to earn an enormous amount of money being a worker in MSL is by organizing strong unions to go on strike. The job description of HR managers at MSL does not require them to sponsor the formation of a union by workers. But a senior-level HR manager at MSL on 19th July 2012 has given a media statement from his hospital bed which states, "What sin did I commit? In fact, I took these workers to the registrar of trade union and I gave the money for registration of the union, but they have in return beaten me badly for all the help I rendered." After sending home all the union leaders of the Maruti Suzuki Employees' Union by paying attractive monetary compensation, MSL should have improved its labor relation practices to remain as a non-unionized organization. But HR managers at the Manesar plant have supported the formation of a new union called the Maruti Suzuki Workers' Union so as to keep its leaders under management control. The Maruti Suzuki Workers Union (MSWU) was formed at the behest of management very recently in March 2012, and in less than four months, such a friendly union has turned violent on 18th July 2012. It clearly demonstrates the kind of dubious labor relation practices prevailing in MSL. After the 18th July 2012 violence, all the leaders of MSWU have been arrested by police and sent to jail, and it is yet to be seen whether MSL will attempt to sponsor the formation of another union of workers or discourage the unionization activities or take a neutral stand.
Defense Mechanism
While people all over the country are shocked at the way things are going wrong in MSL, its HR managers are tactfully behaving to deny the reality. HR head of MSL, Mr. S.Y. Sidiquee, has invited all his HR friends from other industries and made a presentation on 30th July 2012 to highlight the mistakes of MSL workers and to justify all the actions of managers which led to the violence at the Manesar factory on 18th July 2012. The senior-most HR managers of MSL had started writing articles in business magazines and delivering lectures in managerial forums even before the injured managers were discharged from the hospital. These managers are yet to accept the universally accepted fact that progressive labor relation is a science that can be learned and practiced. The company has not accepted responsibility for the safety of its employees at the workplace and hence has not taken action against any managers for the collapse of security measures. Rather, it is holding the frustrated workers responsible for the insecure climate prevailing at the workplace. The top management of MSL has gone one more step ahead. Instead of resolving the basic problems of workers to promote harmonious labor relations, it has started believing in superstition. Hence, religious rituals were performed at the Manesar plant by inviting South Indian Hindu priests from Karnataka to correct the so-called Vaastu problems. The top management now believes that a graveyard and three temples existed at the sites which were destroyed to build the Manesar plant and hence labor unrest can be eliminated by conducting religious rituals.
Misconceived Diversity
It is true that hiring people from all sections of society brings diversity for business advantage, but MSL practices diversity in wrong ways. Even though it hires people from all sections of society, the demarcation lines are clearly drawn. While people belonging to lower social strata of society like scheduled castes and tribes are hired at the worker level along with rural upper castes, the managerial cadre is dominated by the urban elite from New Delhi. This kind of misplaced diversity policy has failed to promote common understanding between managers and workers; rather, it has given birth to social disharmony among its own managers and workers. It is important to note that organizational fabric cannot be strengthened without knowing the socio-cultural undercurrents among individuals and groups.
Taking Revenge
It is not clear whether it is the desire of Suzuki bosses in Japan, the Chairman of MSL in New Delhi, or HR managers of the company to perpetuate the practice of vengeance against workers. The nature and scale of violence clearly show that about 180 workers were responsible for planning and executing the violence at the Manesar plant on 18th July 2012, which is corroborated by police investigation and labor department findings, but the management is summarily refusing to employ more than 500 workers without any charges being proved against them in the inquiry. It is easier to send home these workers with the assistance of the police department, but such an unethical move would cause ugly wounds in the minds of remaining employees who are allowed to work, and every such unjust act of management may be retaliated unjustly by the workers in the days to come. Management and government may brand dismissed workers as bad, but they have already earned a permanent place as martyrs in the minds of remaining employees.
Winners and Losers
MSL has started operations in the Manesar factory with effect from 21st August 2012 by terminating the services of nearly 500 workers. But it is difficult to judge the winners and losers in this battle. The basic reasons for the escalation of this conflict were just three, namely: (1) low wages, (2) poor working conditions, and (3) employing a large number of contract workers. While MSL has retained the first two problems intact, it has come out with a solution that seems workable. Prior to the July 2012 violence, the company had two contract workers for one regular worker, or say a 70:30 ratio. Now MSL has resolved to reverse this ratio by having one contract worker for every two regular workers, which appears to be a partial victory for the workers, but the joy of regular employment may also be squeezed by management offering harsh working conditions and lower wages. Low wages and poor working conditions continue to be the thorns in the way of peaceful industrial relations in the days to come. It is immaterial whether the workers will unionize again or not, but the sooner MSL resolves these two fundamental labor problems, the better its path for progress.
From India, Ahmadabad
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I am really shocked after reading this case study since it reveals many flaws of MSL. I am still confused about whether the government is going to take any action or not. The methods mentioned above to deal with laborers are really good, and we all know that in every negotiation, you should aim for a win-win situation. However, MSL is not taking any action to listen to the problems of their laborers. Definitely, money has corrupted the seniors, and the bribe method was used to solve every strike.
MSL Case Study Circulation
The MSL case study should be circulated to everyone, and everyone should know that the Japanese are not that good at managing things when it comes to MSL. I feel sorry for the laborers since they were very ill-treated by MSL . Very nice post and very informative.
Regards,
YDM
From India, Muzaffarnagar
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MSL Case Study Circulation
The MSL case study should be circulated to everyone, and everyone should know that the Japanese are not that good at managing things when it comes to MSL. I feel sorry for the laborers since they were very ill-treated by MSL . Very nice post and very informative.
Regards,
YDM
From India, Muzaffarnagar
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I have gone through your case study relating to MSL. It's a good listen for all of us who are associated with the HR profession. The MSL incident is an eye-opener for the HR fraternity. It's high time for the Government of India to consider the proper implementation of the Industrial Disputes Act, 1947, and related laws.
Nice informative post.
Regards,
Nabarun
From India, Siliguri
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Nice informative post.
Regards,
Nabarun
From India, Siliguri
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A true HR professional should have a good understanding of labor laws. The MSL authorities invest significant resources in HR practices, sometimes neglecting industrial relations (IR) practices. Even in their selection procedures for HR roles, the focus is solely on HR. The case study clearly demonstrates that every HR professional should also be knowledgeable about IR practices.
Specifically, when working as a "Plant HR" person, it is essential to be well-versed in labor laws to thrive in the role. Unfortunately, this aspect seems to be lacking at MSL.
Thank you for sharing this insight with the society.
Thanks and Regards,
B. RAVIMURUGAN
Senior HR & IR Professional
M: [Phone Number Removed For Privacy Reasons]
From India, Chennai
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Specifically, when working as a "Plant HR" person, it is essential to be well-versed in labor laws to thrive in the role. Unfortunately, this aspect seems to be lacking at MSL.
Thank you for sharing this insight with the society.
Thanks and Regards,
B. RAVIMURUGAN
Senior HR & IR Professional
M: [Phone Number Removed For Privacy Reasons]
From India, Chennai
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Well, thanks for sharing the information you have presented here, but could you please share something about your motive or purpose for this Case Study of HR? I mean, are you the researcher or a student, and what was the idea behind gathering all this information?
“A case study can be used for descriptive, explanatory, or exploratory purposes,” which I guess you forgot to share with us.
Second, what are the sources and references for the collection of this data or details?
As we are all well aware of the problems that happened in the past months with MSL, talking about a company and showing facts directly without any connection, base, motive, or purpose, or without conducting good research and understanding their past practices, can really not be a good thing. Therefore, while discussing, we must not forget to share our motive and the sources or references we are using to share the information. “Even students are taught the value of references and sources by their teachers and how to use them for a project report.”
Many of us know things from media, industry people, and others about the problems that emerged during that time, which hit MSL and other industry people badly. However, we, who are sitting outside and are not part of MSL, can't actually claim what happened there internally and what became the main cause of all this mess. However, we can learn from these things and take actions on our own by considering the issues we have knowledge of.
Your efforts are appreciated, but I must let you know that the information you have collected contains many issues or points that are not actually existing. Perhaps you don't know the history of MSL and their HR practices. Maruti Suzuki has won many national and international awards since it began production and has established many big platforms and learning examples for the world through their strategies, effective manpower planning, employee welfare, and more.
Like B. RAVIMURUGAN, who is highlighting some valid and valuable points beautifully, which is true, but some unfortunate conditions, uncertainties, and mistakes of a few people that caused all this mess in past months can never be considered as a reason to accuse the system and HR practices there.
@B. RAVIMURUGAN, I would like to express my sincere thanks to you.
But yes, we must learn from the problems that MSL has also presented. If you are not updated, I request you to please do more research and read the news about them and the actions that have been taken by MSL.
Regards.
From India, Gurgaon
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“A case study can be used for descriptive, explanatory, or exploratory purposes,” which I guess you forgot to share with us.
Second, what are the sources and references for the collection of this data or details?
As we are all well aware of the problems that happened in the past months with MSL, talking about a company and showing facts directly without any connection, base, motive, or purpose, or without conducting good research and understanding their past practices, can really not be a good thing. Therefore, while discussing, we must not forget to share our motive and the sources or references we are using to share the information. “Even students are taught the value of references and sources by their teachers and how to use them for a project report.”
Many of us know things from media, industry people, and others about the problems that emerged during that time, which hit MSL and other industry people badly. However, we, who are sitting outside and are not part of MSL, can't actually claim what happened there internally and what became the main cause of all this mess. However, we can learn from these things and take actions on our own by considering the issues we have knowledge of.
Your efforts are appreciated, but I must let you know that the information you have collected contains many issues or points that are not actually existing. Perhaps you don't know the history of MSL and their HR practices. Maruti Suzuki has won many national and international awards since it began production and has established many big platforms and learning examples for the world through their strategies, effective manpower planning, employee welfare, and more.
Like B. RAVIMURUGAN, who is highlighting some valid and valuable points beautifully, which is true, but some unfortunate conditions, uncertainties, and mistakes of a few people that caused all this mess in past months can never be considered as a reason to accuse the system and HR practices there.
@B. RAVIMURUGAN, I would like to express my sincere thanks to you.
But yes, we must learn from the problems that MSL has also presented. If you are not updated, I request you to please do more research and read the news about them and the actions that have been taken by MSL.
Regards.
From India, Gurgaon
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Thank you for sharing this. It is really an eye-opener in terms of labor relationships in a manufacturing plant. Many companies are now welcoming workers to escalate to a higher level without interruption to make them feel heard.
Thanks & Regards,
Deepa
From India, Bhagalpur
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Thanks & Regards,
Deepa
From India, Bhagalpur
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You have put in a lot of effort to study MSL, but some of the points you mentioned are contradictory.
1. Practically, an HR manager is an executor of policies framed by top management. If the top management lacks vision, the HR manager will be ineffective in such conditions.
2. The mentalities of Japanese and Indians do not match in any way. We are managed by Indians.
3. Why should Shivkumar and Sonu Gujjar not be blamed for acting against the workers of MSL?
4. There has been a change in the attitude of the workers when they are put on the permanent cadre of the company.
5. MSL management has taken a positive view by providing assistance for the formation of a Union. In fact, they did a good thing to maintain industrial peace and harmony.
Thank you.
From India, Surat
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1. Practically, an HR manager is an executor of policies framed by top management. If the top management lacks vision, the HR manager will be ineffective in such conditions.
2. The mentalities of Japanese and Indians do not match in any way. We are managed by Indians.
3. Why should Shivkumar and Sonu Gujjar not be blamed for acting against the workers of MSL?
4. There has been a change in the attitude of the workers when they are put on the permanent cadre of the company.
5. MSL management has taken a positive view by providing assistance for the formation of a Union. In fact, they did a good thing to maintain industrial peace and harmony.
Thank you.
From India, Surat
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Thank you for sharing the case study. I was initially aware of one part of the incident which involved management, and now you have shed light on the workers' part. This is truly an eye-opener for every HR professional.
Thanks and regards,
Asmita Das
From India, Mumbai
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Thanks and regards,
Asmita Das
From India, Mumbai
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The Role of Superstition and Science in Management Decisions
Doctor can advise on precautions, but how many of us take their advice positively? What is the harm if Mr. S.Y. Siddiquee is promoted as Chief Operating Officer?
Let us understand the difference between superstition and science. Vaastu Shastra is a science like any other science in the world. There is no question that arises about the social status of society. Rahul Gandhi, being a son of the Gandhi family, can work as a laborer in MSL.
If workers feel that they are cheated by the management, then there is government machinery that can act prejudicially. Yes, any person who is socially backward, irrespective of caste or creed, should be helped by all of us, including the government.
We need to study both sides of the coin, whether it is management or workers. A one-sided decision is always harmful. This is my personal view, having been in Industrial Relations for the last thirty years.
With regards to your feelings.
From India, Surat
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Doctor can advise on precautions, but how many of us take their advice positively? What is the harm if Mr. S.Y. Siddiquee is promoted as Chief Operating Officer?
Let us understand the difference between superstition and science. Vaastu Shastra is a science like any other science in the world. There is no question that arises about the social status of society. Rahul Gandhi, being a son of the Gandhi family, can work as a laborer in MSL.
If workers feel that they are cheated by the management, then there is government machinery that can act prejudicially. Yes, any person who is socially backward, irrespective of caste or creed, should be helped by all of us, including the government.
We need to study both sides of the coin, whether it is management or workers. A one-sided decision is always harmful. This is my personal view, having been in Industrial Relations for the last thirty years.
With regards to your feelings.
From India, Surat
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The information you have provided is very exhaustive. Although I have been keeping track of all the printed material on the Maruti Case, I did not find much of the information that you have provided. I would request you to provide proper citations/references.
From India, New Delhi
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From India, New Delhi
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It's a good initiative taken by Ms. Bhargavi, presenting the issue concisely and opening it up for discussion. Since perceptions and analyses vary among individuals, it's time to reach a conclusion by considering all the pros and cons, learning from mistakes, and suggesting better ways to improve IR practices. I hope that seniors will definitely share their views on this sensitive issue.
From India, Bangalore
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From India, Bangalore
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Dear Dhara, your slides are good, but you need to delve deeper and address the problems more thoroughly. The ratio of permanent to temporary workforce is currently 30:70. While this ratio has been narrowed recently, is it truly a solution to the problem? Are workers being compensated fairly? If not, the government should step in with a solution. However, remuneration is not the only factor; HR professionals need to explore the underlying reasons more extensively. I believe adopting a cognitive approach in the actual work field will make a significant difference. Work supervisors must create a cohesive environment for smooth operations. Ultimately, they are the ones who are initially referred to as personnel managers.
Regards,
Deepa Srivastava
[Phone Number Removed For Privacy Reasons]
From India, Bhagalpur
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Regards,
Deepa Srivastava
[Phone Number Removed For Privacy Reasons]
From India, Bhagalpur
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Our company is a manufacturing concern currently experiencing a situation similar to what Maruti Suzuki Limited (MSL) went through. Cost management is one of the key result areas (KRAs) for the HR Department, and we also need to monitor the productivity of each employee and ensure the effective utilization of available resources. As HR professionals, it is essential to meet your KRAs. It has been observed that when a contract or casual employee transitions to a regular employee, their efficiency levels tend to decrease. Some employees may become more undisciplined, especially when they are part of a union. Consequently, the HR department ends up spending more time dealing with frivolous issues rather than implementing innovative and constructive HR practices. Dealing with union-related matters is indeed very challenging. Union representatives often work with the sole aim of causing issues through hand-picked worker representatives and seeking favors from the management in disguise. Unionized workers can be very difficult to manage, leading to both workers and management becoming victims of the union representatives.
Can any of you suggest how to prevent a situation similar to what MSL faced?
Regards,
Ram Singh
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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Can any of you suggest how to prevent a situation similar to what MSL faced?
Regards,
Ram Singh
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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Management:
1. The supervisor had to be suspended, and a domestic inquiry has to be initiated against him as well.
2. Management needed to be transparent, rational, and must follow the principle of equality.
Workers:
1. The worker was only suspended for a domestic inquiry, not dismissed.
2. Why did they not wait for the domestic inquiry?
3. In a domestic inquiry, equal opportunity is always given to refute the charges and present evidence, to cross-examine the witnesses of management.
4. Why were the labor department not approached by any of the senior union leaders if working conditions were harsh, wages were low, and a large number of contract laborers were appointed?
5. Why were the workers who provoked and were involved in the violence not advised to also advise other workers to not take the law into their own hands?
I completely disagree with the following points:
1. It is also important to be careful about the workers who have nothing to lose.
2. The workers are left with the only option of expressing anger.
Regards.
From India, New Delhi
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1. The supervisor had to be suspended, and a domestic inquiry has to be initiated against him as well.
2. Management needed to be transparent, rational, and must follow the principle of equality.
Workers:
1. The worker was only suspended for a domestic inquiry, not dismissed.
2. Why did they not wait for the domestic inquiry?
3. In a domestic inquiry, equal opportunity is always given to refute the charges and present evidence, to cross-examine the witnesses of management.
4. Why were the labor department not approached by any of the senior union leaders if working conditions were harsh, wages were low, and a large number of contract laborers were appointed?
5. Why were the workers who provoked and were involved in the violence not advised to also advise other workers to not take the law into their own hands?
I completely disagree with the following points:
1. It is also important to be careful about the workers who have nothing to lose.
2. The workers are left with the only option of expressing anger.
Regards.
From India, New Delhi
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On reading your case study, my reactions were similar to those of Mr. Anil Kumar Arora. On the face of it, it seems one-sided and biased—not objective and balanced. It's a well-known fact that the workers at MSL are handsomely paid. I may be wrong, but my feeling is that regular workers at any organization are a class apart from the contract workers and don't even mingle well—not to mention empathizing with them!
Regards,
rsdv
From India, Indore
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Regards,
rsdv
From India, Indore
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I appreciate the time and effort you took to conduct thorough research and prepare a report based on the study. However, please keep in mind that when you prepare a report or conduct a case study, it is essential to study both parties involved and present the positives and negatives of each side. The current report only reflects the perspective of one side, which is the workers of the company. It would be beneficial if you could equally analyze the company's viewpoint and then create a comprehensive report based on the findings from both parties.
Regardless, it was a good attempt. All the best.
Regards,
From India, Kochi
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Regardless, it was a good attempt. All the best.
Regards,
From India, Kochi
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If you all want to understand the Maruti IR issues from a professional and academic perspective in totality, you can go through this case study published in the September 12 issue of Business Manager magazine. This case study from the magazine has also been taken up for MBA students by many institutes to learn the intricacies of employee relations.
Regards,
Anil Kaushik
From India, Delhi
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Regards,
Anil Kaushik
From India, Delhi
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Thank you for sharing the case, which is a valuable lesson for all HR personnel on maintaining a positive culture within the organization for the fruitful growth of the company. Nevertheless, we must also consider the welfare of the workers, as they are the individuals who contribute their efforts towards the company's success.
Regards,
Susant
From India, Mumbai
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Regards,
Susant
From India, Mumbai
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Thanks for posting this. To many friends, it may seem inappropriate that Maruti Suzuki has been named directly and opinions directed against them. But all these things are already in the public domain, and you have only brought it up in this HR Forum. This is welcome. It may not harm the interests of Maruti Suzuki if all of us patiently follow the threads, gather bits of critical comments for war gaming the turn of events, and formalize our way ahead. It can happen in any company, anywhere in the world.
Pain: Good for Health
Every company, worth its name, must compile their worst case studies, brainstorm, and come to an understanding of what went wrong, where, why, and since when! Getting into a self-congratulatory chuckle and a false belief of everything being hunky-dory is a sure sign of the impending storm. Pain is not bad because it tells us the problem our body has that needs to be cured. Not having a problem is not ideal for an organization. There are multifarious activities happening in a manufacturing unit: production, security, fire safety, raw materials, logistics, etc., and there would be issues that need to be resolved. As managers, we have to identify them fast, try to resolve them, escalate them timely, and advise the management appropriately, in a forthright manner. For heaven's sake, do not sugarcoat for fear of being blamed for the lapse. A stitch in time...!!
What is in a Name?
For us Indians, it is everything. Big names are intimidating for sure. And therein comes an aura of invincibility, impeccability, and infallibility. And when the occupants of such titanic ships sleep in a complacent slumber, no one would imagine that an iceberg may be on its way, and their master captain may falter in timely course correction. I too was surprised at the turn of events. I had gone through the grueling spells of TPM and Kaizen to understand the Japanese management methods. Implementation and indigenization of any and every concept must always follow. We as managers must understand that, like technology, even concepts become trite and need to be made specific to the current environment.
Processes and ISO Syndrome
ISO certifications are necessary in today's international business. We all know, following the misty and slippery haze of 9000/14000/18000/TSXXXX, etc., and keeping pace with the grueling audit schedules at the cost of productive interventions in the field is not easy. It comes at a huge cost. Most of the CEOs are, in their heart of hearts, better without them. Thankfully they have now been integrated. But, they all talk about processes and documented procedures. And all HR managers know, it is not rocket science. Well-developed processes, procedures, and systems are the lifelines of any company. What these ISOs do not teach us and cannot fathom is the art of man management. Labor relations are one such aspect. Getting certified and passing the audit muster is no barometer for either spring or autumn in an organization. It lies deep within.
Managing Labor Relations
It is too complex to be fully understood by any one of us. But what is clear is that human beings need to be led and not managed. We lead by personal example, transparency, humanness, shared values, walking the talk, sharing the fruits, and respecting the sensibilities of the people we lead. And we manage them through sticks, policies, backdoor negotiations, and rules. Managing is easy, leading is not, as leading requires us to let go of our comfort zones, restrict our privileges, and devote more time toward our workers. Leading evokes respect, while managing is derogatory. A famous military vow that every army officer has to take goes like this, "safety, honor, and welfare of your country (your company) comes first...always and every time...safety, honor, and welfare of the men you command (workers) come next...your own safety and welfare come last...always and every time." Can we replicate it for the company that we draw our sustenance from?
Ownership
Are we ready to acknowledge that our work and hence that company we work for has only remained a means of our sustenance/livelihood and its well-being do not figure into our scheme of things? They remain the ladder through which we negotiate the snakes and reach to a higher position in another company. Instead of having meetings galore, do we spend enough time on factors really pushing productivity of workers rather than making pie charts and presenting them in good English during review meetings? Are we advising the management correctly even at the cost of earning their ire and disturbing their game of golf or the goblet of chilled wine? As management, are we ready to listen to our line managers, pay heed to the emanating smoke, and support them? There is a famous line, "war is too dangerous a matter to be left to the generals." Labor relations are also sensitive and need a firm grip by the management. If everyone is playing safe and passing the buck - from AM-AGM to VP, who is going to bell the cat?
Fancy for Cosmetic Jargonism
HR seems to have collected such a treasure of fanciful terminologies and OD diagnostics that it has become incomprehensible by the general public, like me. It is scary, to say the least. And the companies, in a bid to outdo the other, compete and rustle after the plethora of such surgeons to get their house in order. Millions spent on such extravaganzas are justified. But, try and take a sanction for some hot water containers or better chairs for the workers' restrooms and you hit a bottleneck! Spend small amounts in a productive manner for the workers, and it yields geometric dividends. Please try it out. How many of us have seen companies spending lakhs on team building events for executives in star hotels but scuttling your bids for a fresh pair of sports uniforms for the cricket team! Penny-wise and...! I sometimes feel, like Indian policymakers and the parliament too, let us freeze any more interventions, any new HR policies and get hold of what is already existing and try to implement it in true spirit. Let our practical approach to problem-solving be simple and not become a host to the complex matrices and unfathomable depths as we come across while negotiating the minefield of appraisal forms.
Quality of Leaders
As Bhargavi has pointed out, any mismatch between the workers and their managers is bound to create friction. All our workers come from villages, with poor backgrounds and fixed beliefs. They have their own perceptions and expectations. We can drive our production. But we cannot drive the workers. Productivity has to be induced through positive strokes, healthy interventions, and good rapport between the managers and workers. Indian workers are not as demanding as their western counterparts and do not wish parity with the managers, as the western workers are entitled to and is permitted by their culture. Thus our managers can really lead their workers very well, by being a part of them.
I thank you all and wish that such events do not descend in your organizations. Your positive approach would make things easier for the future.
Thanks to Bhargavi. It is a problem relevant for the whole industry and through this forum, lessons must emerge.
From India, Delhi
Acknowledge(1)Amend(0)
Pain: Good for Health
Every company, worth its name, must compile their worst case studies, brainstorm, and come to an understanding of what went wrong, where, why, and since when! Getting into a self-congratulatory chuckle and a false belief of everything being hunky-dory is a sure sign of the impending storm. Pain is not bad because it tells us the problem our body has that needs to be cured. Not having a problem is not ideal for an organization. There are multifarious activities happening in a manufacturing unit: production, security, fire safety, raw materials, logistics, etc., and there would be issues that need to be resolved. As managers, we have to identify them fast, try to resolve them, escalate them timely, and advise the management appropriately, in a forthright manner. For heaven's sake, do not sugarcoat for fear of being blamed for the lapse. A stitch in time...!!
What is in a Name?
For us Indians, it is everything. Big names are intimidating for sure. And therein comes an aura of invincibility, impeccability, and infallibility. And when the occupants of such titanic ships sleep in a complacent slumber, no one would imagine that an iceberg may be on its way, and their master captain may falter in timely course correction. I too was surprised at the turn of events. I had gone through the grueling spells of TPM and Kaizen to understand the Japanese management methods. Implementation and indigenization of any and every concept must always follow. We as managers must understand that, like technology, even concepts become trite and need to be made specific to the current environment.
Processes and ISO Syndrome
ISO certifications are necessary in today's international business. We all know, following the misty and slippery haze of 9000/14000/18000/TSXXXX, etc., and keeping pace with the grueling audit schedules at the cost of productive interventions in the field is not easy. It comes at a huge cost. Most of the CEOs are, in their heart of hearts, better without them. Thankfully they have now been integrated. But, they all talk about processes and documented procedures. And all HR managers know, it is not rocket science. Well-developed processes, procedures, and systems are the lifelines of any company. What these ISOs do not teach us and cannot fathom is the art of man management. Labor relations are one such aspect. Getting certified and passing the audit muster is no barometer for either spring or autumn in an organization. It lies deep within.
Managing Labor Relations
It is too complex to be fully understood by any one of us. But what is clear is that human beings need to be led and not managed. We lead by personal example, transparency, humanness, shared values, walking the talk, sharing the fruits, and respecting the sensibilities of the people we lead. And we manage them through sticks, policies, backdoor negotiations, and rules. Managing is easy, leading is not, as leading requires us to let go of our comfort zones, restrict our privileges, and devote more time toward our workers. Leading evokes respect, while managing is derogatory. A famous military vow that every army officer has to take goes like this, "safety, honor, and welfare of your country (your company) comes first...always and every time...safety, honor, and welfare of the men you command (workers) come next...your own safety and welfare come last...always and every time." Can we replicate it for the company that we draw our sustenance from?
Ownership
Are we ready to acknowledge that our work and hence that company we work for has only remained a means of our sustenance/livelihood and its well-being do not figure into our scheme of things? They remain the ladder through which we negotiate the snakes and reach to a higher position in another company. Instead of having meetings galore, do we spend enough time on factors really pushing productivity of workers rather than making pie charts and presenting them in good English during review meetings? Are we advising the management correctly even at the cost of earning their ire and disturbing their game of golf or the goblet of chilled wine? As management, are we ready to listen to our line managers, pay heed to the emanating smoke, and support them? There is a famous line, "war is too dangerous a matter to be left to the generals." Labor relations are also sensitive and need a firm grip by the management. If everyone is playing safe and passing the buck - from AM-AGM to VP, who is going to bell the cat?
Fancy for Cosmetic Jargonism
HR seems to have collected such a treasure of fanciful terminologies and OD diagnostics that it has become incomprehensible by the general public, like me. It is scary, to say the least. And the companies, in a bid to outdo the other, compete and rustle after the plethora of such surgeons to get their house in order. Millions spent on such extravaganzas are justified. But, try and take a sanction for some hot water containers or better chairs for the workers' restrooms and you hit a bottleneck! Spend small amounts in a productive manner for the workers, and it yields geometric dividends. Please try it out. How many of us have seen companies spending lakhs on team building events for executives in star hotels but scuttling your bids for a fresh pair of sports uniforms for the cricket team! Penny-wise and...! I sometimes feel, like Indian policymakers and the parliament too, let us freeze any more interventions, any new HR policies and get hold of what is already existing and try to implement it in true spirit. Let our practical approach to problem-solving be simple and not become a host to the complex matrices and unfathomable depths as we come across while negotiating the minefield of appraisal forms.
Quality of Leaders
As Bhargavi has pointed out, any mismatch between the workers and their managers is bound to create friction. All our workers come from villages, with poor backgrounds and fixed beliefs. They have their own perceptions and expectations. We can drive our production. But we cannot drive the workers. Productivity has to be induced through positive strokes, healthy interventions, and good rapport between the managers and workers. Indian workers are not as demanding as their western counterparts and do not wish parity with the managers, as the western workers are entitled to and is permitted by their culture. Thus our managers can really lead their workers very well, by being a part of them.
I thank you all and wish that such events do not descend in your organizations. Your positive approach would make things easier for the future.
Thanks to Bhargavi. It is a problem relevant for the whole industry and through this forum, lessons must emerge.
From India, Delhi
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Reasons Behind the Latest Violence
First, the reason provided here for the latest violence is that the supervisor made some caste-based comments on the worker. This claim is false because the supervisor also belongs to the same caste.
Secondly, this movement appears to be pre-planned as they were well-prepared for the attack and...
Thirdly, whatever the reason may be, you don't have to resort to violence to fulfill your demands. There may be some failures on the part of the management and HR, but labor politics is also responsible for the same. I have witnessed many instances where unions demand many things that are not always feasible or sometimes support workers who are at fault.
This is a good study, but I hope that it also covers the perspective of HR/Management on how they feel when they are being blackmailed by these unions.
Thanks & Regards,
Prakash Rathi
From United States, Ashburn
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First, the reason provided here for the latest violence is that the supervisor made some caste-based comments on the worker. This claim is false because the supervisor also belongs to the same caste.
Secondly, this movement appears to be pre-planned as they were well-prepared for the attack and...
Thirdly, whatever the reason may be, you don't have to resort to violence to fulfill your demands. There may be some failures on the part of the management and HR, but labor politics is also responsible for the same. I have witnessed many instances where unions demand many things that are not always feasible or sometimes support workers who are at fault.
This is a good study, but I hope that it also covers the perspective of HR/Management on how they feel when they are being blackmailed by these unions.
Thanks & Regards,
Prakash Rathi
From United States, Ashburn
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I appreciate the write-up and understanding about the matter, which gives us a different perspective on the incident. I am not aware of the sources from where you have collected the data, but I would like to mention that HR managers are not allowed in most organizations to administer justice because policies are formulated by top management, and we are required to implement them. Therefore, we have very limited options to execute things based on the ground reality.
Involving Lower-Level Management
I suggest that senior officials of any organization must understand the ground reality, which can only be achieved by involving lower-level management.
Regards,
Amit
From India, Delhi
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Involving Lower-Level Management
I suggest that senior officials of any organization must understand the ground reality, which can only be achieved by involving lower-level management.
Regards,
Amit
From India, Delhi
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Thank you, Bhargavi, for your informative and empowering insights for HR professionals during challenging times, such as industrial disputes. The concerns you emphasized affect not only MSL but also its vendors and ancillaries.
The case you discussed includes a story about a GM HR known for his humility, favoring mainly contract workers, and being skilled in negotiation. A good labor leader can indeed make a difference!
Thank you,
Raj
From India, Delhi
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The case you discussed includes a story about a GM HR known for his humility, favoring mainly contract workers, and being skilled in negotiation. A good labor leader can indeed make a difference!
Thank you,
Raj
From India, Delhi
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Thanks, Bhargavi, for sharing the valuable case study of MSL. I would like to raise a point here—HR professionals are just the middlemen between boardrooms and human resources, even in MSL. The gentleman who lost his life was in the same position. The policies, after discussions from the boardrooms, do not result in positive outcomes. This is the main problem in our country. We talk a lot about the betterment of working conditions, but it all seems to be in vain. Our Indian professionals associated with MSL have already taught them a lot about managing the industry here.
Regards,
Mukesh Sharma
[Phone Number Removed For Privacy Reasons].
From India, Dehra Dun
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Regards,
Mukesh Sharma
[Phone Number Removed For Privacy Reasons].
From India, Dehra Dun
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You have unveiled the truth of industries in our country. It is all the same as what the British were doing, what the landlords (zamindars) had done, and what is still happening in UP, MP, Bihar, Jharkhand, and in many northern and southern states. Contractors are also engaging in similar practices in our country. This reality of exploitation and autocracy is derived from modern management sciences developed in the USA, Europe (Britain, France, Germany), and other countries.
Many industries/companies are practicing the same methods that management has been implementing in MSL. In Pithampur (Near Indore), Madhya Pradesh, the industry that was once Kinetic Honda and is now Mahindra Motors, is following similar practices.
Many industries are opting to employ only contractual labor, while managers have permanent positions. The salary/remuneration given to employees/workers is rarely increased, and if increased, it is only by a small amount. However, for managers, the increments can be substantial, ranging from 20,000 to 500,000, sometimes doubling or tripling.
Managers often suggest that tasks that take 2 minutes should be completed in 1 minute or that two jobs should be done in 2 minutes. They aim to implement KAIZEN or other systems developed in the USA and Japan but do not adopt the salary structures prevalent in Japan.
Thank you, Bhargavi
From India, Indore
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Many industries/companies are practicing the same methods that management has been implementing in MSL. In Pithampur (Near Indore), Madhya Pradesh, the industry that was once Kinetic Honda and is now Mahindra Motors, is following similar practices.
Many industries are opting to employ only contractual labor, while managers have permanent positions. The salary/remuneration given to employees/workers is rarely increased, and if increased, it is only by a small amount. However, for managers, the increments can be substantial, ranging from 20,000 to 500,000, sometimes doubling or tripling.
Managers often suggest that tasks that take 2 minutes should be completed in 1 minute or that two jobs should be done in 2 minutes. They aim to implement KAIZEN or other systems developed in the USA and Japan but do not adopt the salary structures prevalent in Japan.
Thank you, Bhargavi
From India, Indore
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It's really good to know about this case study. It clearly shows one thing: labor laws are always about labor welfare and improving management productivity. However, here at MSL, they have implemented laws that do not provide welfare for the labor. The tragedy is that the government is not involved at any part.
Thank you.
From India, Chennai
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Thank you.
From India, Chennai
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Your efforts are commendable. The incident in MSL was a real lesson for the HR fraternity, highlighting the importance of HR rising to the expectations and emotions of the lower strata of the workforce. It is crucial to adapt and modify age-old policies and practices to ensure that all employees are taken along towards a better standard of living.
Thank you.
Best regards,
Regards
From India, Mumbai
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Thank you.
Best regards,
Regards
From India, Mumbai
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I have gone through this case study many times and tried not to comment on it, but whenever I check, it comes up, so I am compelled to say a few words.
Firstly, the facts and figures mentioned are doubtful. Secondly, MSL is far better in all spheres of management than most Indian companies. Thirdly, the practice of contract labor is an accepted fact in Indian industries, and unnecessary and illogical demands, labor unrest, and biased labor laws are responsible for this practice.
As a whole, I feel the writer is biased against MSL, and the case study is too one-sided.
Thanks.
From India, Delhi
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Firstly, the facts and figures mentioned are doubtful. Secondly, MSL is far better in all spheres of management than most Indian companies. Thirdly, the practice of contract labor is an accepted fact in Indian industries, and unnecessary and illogical demands, labor unrest, and biased labor laws are responsible for this practice.
As a whole, I feel the writer is biased against MSL, and the case study is too one-sided.
Thanks.
From India, Delhi
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I have gone through your article, and my observations are as follows:
1. It is the prerogative of the management to decide the ratio of permanent workers versus contract workers. As long as they are paying the minimum wages and providing the facilities required by law, there is nothing wrong. In fact, this practice is followed by most of the Navaratna companies of the Government of India. The difference in wages between permanent workers and contract workers is also present in these companies, and it is substantial.
2. There was a dispute, as cited in the article, between the supervisor and the worker, which is common in industries. The issue is whether the industrial unrest was because it was not handled properly or for other reasons. It apparently appears that the cited dispute may not be the correct reason; there may be other reasons as well.
3. As an HR specialist, one should not only present the case but also identify the problem and suggest solutions considering the practices in various industries. The article is not exactly a case study; it is a report of the incident at MSL.
4. It is requested that you consider the existing industrial scenario and then present the article because there are some interesting comments, which are as follows:
- Permanent workers' productivity is not as high as that of contract workers. Why is it so?
- In the article itself, it is mentioned that the reasons for the escalation of conflict were due to low wages, poor working conditions, and a large number of contract workers. How do you justify these? Were the wages lower than those of the permanent workers or the minimum wages? In what way were the working conditions poor? On a shop floor, both permanent and contract workers have to work; then how do the conditions differ when the shop floor is the same? How does the large number of contract workers matter? Are you suggesting that all these workers should be made permanent? With this prescription, the labor dispute may be solved for the time being, but the company will be dead. If it is a viable solution, then giant PSUs don't do this.
- Can you cite a company in India where union activities have boosted productivity or improved the conditions of the workmen?
5. I think in our system there is no proper check and balance either for the workmen/Union or the management. Both try to exploit when they get an opportunity. Sometimes we are only responsible for this type of situation. Some HR managers, just to show the efficiency or the savings made by them towards the cost to the company, curtail the benefits management is willing to give to its employees.
Regards,
From India, Vijayawada
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1. It is the prerogative of the management to decide the ratio of permanent workers versus contract workers. As long as they are paying the minimum wages and providing the facilities required by law, there is nothing wrong. In fact, this practice is followed by most of the Navaratna companies of the Government of India. The difference in wages between permanent workers and contract workers is also present in these companies, and it is substantial.
2. There was a dispute, as cited in the article, between the supervisor and the worker, which is common in industries. The issue is whether the industrial unrest was because it was not handled properly or for other reasons. It apparently appears that the cited dispute may not be the correct reason; there may be other reasons as well.
3. As an HR specialist, one should not only present the case but also identify the problem and suggest solutions considering the practices in various industries. The article is not exactly a case study; it is a report of the incident at MSL.
4. It is requested that you consider the existing industrial scenario and then present the article because there are some interesting comments, which are as follows:
- Permanent workers' productivity is not as high as that of contract workers. Why is it so?
- In the article itself, it is mentioned that the reasons for the escalation of conflict were due to low wages, poor working conditions, and a large number of contract workers. How do you justify these? Were the wages lower than those of the permanent workers or the minimum wages? In what way were the working conditions poor? On a shop floor, both permanent and contract workers have to work; then how do the conditions differ when the shop floor is the same? How does the large number of contract workers matter? Are you suggesting that all these workers should be made permanent? With this prescription, the labor dispute may be solved for the time being, but the company will be dead. If it is a viable solution, then giant PSUs don't do this.
- Can you cite a company in India where union activities have boosted productivity or improved the conditions of the workmen?
5. I think in our system there is no proper check and balance either for the workmen/Union or the management. Both try to exploit when they get an opportunity. Sometimes we are only responsible for this type of situation. Some HR managers, just to show the efficiency or the savings made by them towards the cost to the company, curtail the benefits management is willing to give to its employees.
Regards,
From India, Vijayawada
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Thank you for sharing the MSIL insider information. It was worth reading, and such occurrences should not happen if they are real. I have been in the HR profession for more than 20 years and have worked in MNC companies. In my experience, reputable and progressive companies never act against their workers. They understand that human resources are crucial for their sustainability and development. In top companies, certain elements can often provoke unrest among workers for personal vendettas or political gain. Let me share an incident from my career: a female employee was sexually harassed by her male colleague. The affected woman secretly reported the incident to HR. The HR department then called the man, issued a serious warning, and provided a disciplinary notice. However, after 15 days, the same man spread false information about the management and its functioning. He gathered a group of people, started threatening the HR department on other issues, and eventually led to a total strike. It was challenging to regain control of the situation. This case is just one example, and there are many similar instances. Therefore, it is essential to consider both sides of an argument before making decisions on any issue.
From India, Chennai
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From India, Chennai
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I do agree with Mr. Anil Arora and Mr. Ravimurgan. As outsiders, without knowing the facts, we can't comment or apply our notions about any such organization, people, or practices. Although we all have sympathy for whatever happened, we must refrain from doing so. Moreover, being knowledgeable and well-versed in IR Laws actually helps a lot in such situations because laws and systems, if used correctly, can do wonders and prevent such possible situations.
Also, please be careful when posting such case studies or your personal views on any bigger platform as not everyone appreciates direct conclusions. Therefore, I must say that you should put or write your purpose or objective of this case study, sources, and references, etc., as correctly suggested by Mr. Anil. Please do some more homework on the same. I hope you will not take any suggestions from Cite members personally, as it is our responsibility to guide, advise, and express our convictions to help each other.
Regards,
JYOTI
From Japan
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Also, please be careful when posting such case studies or your personal views on any bigger platform as not everyone appreciates direct conclusions. Therefore, I must say that you should put or write your purpose or objective of this case study, sources, and references, etc., as correctly suggested by Mr. Anil. Please do some more homework on the same. I hope you will not take any suggestions from Cite members personally, as it is our responsibility to guide, advise, and express our convictions to help each other.
Regards,
JYOTI
From Japan
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I would like to thank and appreciate all of your efforts for sharing the valuable information related to the labor dispute that happened at MSL. I would also like to emphasize the importance of labor welfare. We need to understand their needs and act accordingly. Only focusing on a win-win situation in negotiations may not contribute to a long-lasting and healthy industrial relationship and peace. This case study was truly informative.
Regards,
Diptiranjan Das
From India, Keonjhar
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Regards,
Diptiranjan Das
From India, Keonjhar
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It is a total shame for all HR professionals that many popular organizations are using contractual staff in the HR department. Despite knowing very well that under the Contract Labour (Regulation and Abolition) Act of 1970 and its rules of 1971, organizations cannot engage in core activities. Therefore, I believe all HR professionals are responsible for the violation of labor laws.
Regards,
From India, Mumbai
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Regards,
From India, Mumbai
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yes rightly said i agree with you but the labours are the scape goats here........ and they are waiting for a positive turn................
From India, Guwahati
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From India, Guwahati
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One point I want to stress is that, even though MSL has earned recognition for best management practices in the international forum, conditions in India are different due to factors such as culture, habits, and education. The HR policies in MSL are crafted by Japanese HR personnel who have limited knowledge about local customs, conditions, and education. Their policies may work well in Japan's environment, but they do not suit Indian conditions. The same is true for multinationals like NOKIA and Hyundai Motors, which claim to implement the best HR practices.
The rise in the cost of living and the decrease in real wages are creating frustration in the workforce, not only in MSL but also in other parts. Therefore, the first priority should be to provide workers with a comfortable living, good working conditions, social security, and to fulfill medical and health requirements, while giving recognition to their efforts. We need to address these issues to keep employees happy.
Regards,
T. Mahendar Reddy
From India, Hyderabad
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The rise in the cost of living and the decrease in real wages are creating frustration in the workforce, not only in MSL but also in other parts. Therefore, the first priority should be to provide workers with a comfortable living, good working conditions, social security, and to fulfill medical and health requirements, while giving recognition to their efforts. We need to address these issues to keep employees happy.
Regards,
T. Mahendar Reddy
From India, Hyderabad
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Can anyone explain the role of government machinery in the MSL case? What was the role of ALC and DLC regarding the deployment of 70% contract labor in the running factory? Was there any legal case or show cause between the Haryana Government and MSL?
Regards,
Subir
From India, New Delhi
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Regards,
Subir
From India, New Delhi
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Addressing Labor Challenges in India
Most managements ask the question, "What can you save for us? Labor costs are going up; how can we accommodate this?" The cost of production will increase, leading many contractors to use tricks in pay scales. Even minimum wages are not paid in many listed industries. Workers are made to stay in unhealthy conditions, away from their families. They are forced to work for more than 16 hours a day with only single overtime. Whenever they request leave, they are told, "Tumhara kaam kaun karega, Tum ko kaam nahi chahiye, chale jao."
All these issues are fabricated and shown to the relevant departments, where authorities/officers take bribes and say "ALL IS WELL."
Many are only concerned about adherence to labor laws or statutory compliance measures. Thus, a much broader approach is required to tackle this issue.
Performance will be based on "savings." So all the drama continues. Many corporates follow this approach. Additionally, the population contributes to the crisis; "TUM NAHI TO DOOSRA" is the buzzword.
GOD SAVE INDIA & INDIANS!
From India, Bangalore
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Most managements ask the question, "What can you save for us? Labor costs are going up; how can we accommodate this?" The cost of production will increase, leading many contractors to use tricks in pay scales. Even minimum wages are not paid in many listed industries. Workers are made to stay in unhealthy conditions, away from their families. They are forced to work for more than 16 hours a day with only single overtime. Whenever they request leave, they are told, "Tumhara kaam kaun karega, Tum ko kaam nahi chahiye, chale jao."
All these issues are fabricated and shown to the relevant departments, where authorities/officers take bribes and say "ALL IS WELL."
Many are only concerned about adherence to labor laws or statutory compliance measures. Thus, a much broader approach is required to tackle this issue.
Performance will be based on "savings." So all the drama continues. Many corporates follow this approach. Additionally, the population contributes to the crisis; "TUM NAHI TO DOOSRA" is the buzzword.
GOD SAVE INDIA & INDIANS!
From India, Bangalore
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On that unfortunate day, I was present. At that time, I believed the worker's behavior was entirely inappropriate. However, I now understand that the circumstances and some improper actions led to this tragic event. Workers are driven by their basic needs; otherwise, Maruti would cease operations entirely.
Thank you.
From India, Rohtak
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Thank you.
From India, Rohtak
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Thanks, Aroraji. Yes, 50% of the HR professionals who are branded as "Plant HR," without knowledge of labor laws and the organization's climate, have been adversely affected by external forces. HR must analyze the situation and respond appropriately without any shortcomings. We cannot solely blame the Management either, as they are unaware of the underlying currents, which essentially represent the situation.
We need to strike a balance between employees and employers. Let's consider a ratio of 60% for the employer and 40% for the employee. Unfortunately, some of our HR personnel do not even consider a 20% ratio for employees, leading to significant challenges faced by the group. It is crucial that we comprehend the actual scenario and fulfill our roles effectively.
Thanks & Regards,
B. RAVI MURUGAN
Senior HR & IR Professional
Email: [Email Removed For Privacy Reasons]
From India, Chennai
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We need to strike a balance between employees and employers. Let's consider a ratio of 60% for the employer and 40% for the employee. Unfortunately, some of our HR personnel do not even consider a 20% ratio for employees, leading to significant challenges faced by the group. It is crucial that we comprehend the actual scenario and fulfill our roles effectively.
Thanks & Regards,
B. RAVI MURUGAN
Senior HR & IR Professional
Email: [Email Removed For Privacy Reasons]
From India, Chennai
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This case is an eye-opener, but it has not awakened the industries yet. Many industries have yet to improve and treat human beings (workers) as human beings. Still, the managers who suggest reducing the time between processes and applying KAIZEN and other methods of work improvement, or so-called production and productivity increase, get a hike in their package. On the other hand, the real performers, the workers, are squeezed into the system while their salaries remain the same (which happens to be 1/4th of the managers' maximum).
The Manesar Plant has possibly overlooked and appreciated only the managers, ignoring human behavior. Your write-up is still important and valuable for HR professionals, teachers, and students.
Thank you.
From India, Indore
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The Manesar Plant has possibly overlooked and appreciated only the managers, ignoring human behavior. Your write-up is still important and valuable for HR professionals, teachers, and students.
Thank you.
From India, Indore
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Case Study, Transforming HR Through Technology.doc