Haryana Labour dept hopeful of resolving Maruti strike

“There is a possibility of ending the standoff between both the parties (workers and management) today as we are working hard on resolving the matter,” a senior official of the Haryana Labour Department told PTI.

The official, seeking anonymity, asserted that the department had kept an “open mind” on sorting out the issue and efforts were being made to commence production at the Manesar facility as soon as possible.

Officials of the Haryana Labour Department are going to hold a fresh round of talks with the management of Maruti Suzuki in the afternoon today to break the deadlock.

“We are going to hold a meeting with the management of the company in the afternoon in order to end the standoff between both the parties,” the official informed.

The management of the company has maintained its stance on not allowing the formation of a non-affiliated union at the Manesar plant. However, the workers have been demanding the recognition of a new union, the Maruti Suzuki Employees’ Union, at the Manesar facility.

On June 4, Maruti Suzuki workers at the Manesar plant went on strike demanding the recognition of the new union. The strike has caused heavy losses for Maruti, with production at the Manesar plant completely shut down.

Maruti had sacked 11 employees for allegedly provoking other employees to go on strike.

On June 10, the Haryana government imposed a ban on the strike by issuing prohibiting orders under the Industrial Dispute Act and had referred the matter to the Labour Court.

However, the Haryana Labour Department official said the department wanted the matter between the workers and management to be resolved amicably instead of through the Labour Court.

“We want both the parties to reach a compromise rather than the matter going to court,” official informed.

The ongoing strike had also cast its shadow on the working of ancillary units which had been supplying auto parts to Maruti. The discontinuation of production in Maruti has “forced” auto component suppliers to shut down their units and has led to a pile up of inventory of auto parts.

The shut down of the plant may also affect revenue generation for the state exchequer. Maruti Suzuki India paid tax on inputs and on sales, including inter-state sales, to the tune of Rs 780 crore and Rs 525 crore, respectively, to Haryana for the year ending December 31, 2010. It also got tax credit of Rs 255 crore in the same period.