Strike costs Maruti revenue loss of Rs1,500 crore

19 Oct 2011

1

Maruti Suzuki India Ltd has incurred a revenue loss of  Rs1,500 crore since 29 August due to labour problems at its Manesar plant that has severely hit production.

According to company chairman R C Bhargava, the company's production had suffered and it had made 50,000 fewer cars due to the unrest till yesterday.

Maruti's Manesar plant resumed production yesterday, after striking workers were evicted from the factory premises on Friday following a court order.

Though  the company started operations at a weld shop in Manesar on Monday, vehicle production started only yesterday, Maruti said.

The workers had struck work since 7 October, demanding the reinstatement of 44 colleagues who weren't taken back by Maruti following the settlement of a dispute that stretched over 33 days and ended on 1 October. The previous strike came after the decision by Maruti on 29 August to ask workers at Manesar to sign a "good conduct bond. "
 
The company had to take the step after it found "serious and deliberate" quality problems in cars made at the plant.

Bhargava said, the current production level was 50 per cent lower than what the company had planned for this time of the year.

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