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Maruti likely to sack workers with Manesar violence charges: 10 facts

Maruti likely to sack workers with Manesar violence charges: 10 facts

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New Delhi: Maruti Suzuki India is likely to sack workers against whom the police had filed a charge sheet, sources told NDTV Profit.

 

Here are 10 facts related to the Manesar facility:

 

1) All contract workers likely to be made permanent workers with immediate effect, according to sources. Sources said that the company is likely to partially re-open the plant on August 21, 2012.

 

2) The Gurgaon Police arrested the main accused in the violence at Maruti Suzuki’s Manesar plant on July 18, in which one senior executive was killed and nearly 100 others were injured. Jiya Lal was picked up by the police officials late at night on Wednesday from Dharuhera. He will now be produced in court today at around 11am.

 

3) After the violence on July 18, the Manesar plant is currently being guarded by the Haryana Police. Around 500-600 police personnel have been deployed.

 


4) Following the violence and arson, in which one senior executive was killed and nearly 100 others injured, Maruti Suzuki India (MSI) had on July 21 announced an indefinite lockout at the unit.

 

5) On August 1, the police had arrested 10 office bearers of the Maruti Suzuki Workers' Union, including its President Ram Meher and General Secretary Sarabjit Singh, taking the total number of worker-arrests to 114 in relation to the incident.

 

6) Maruti's factory makes about 1,700 cars a day, including its top-selling Swift hatchback. The lockout cost the company nearly Rs 80 crore a day. The Manesar factory’s total annual capacity of 550,000 cars produces a third of Maruti's output.

 


7) Manesar's best-paid manufacturing workers earned Rs 25,000 a month, and 1,500 of them, on temporary contracts, earn less than half that. The union was pushing for a Rs 15,000 per-month increase over three years when the riot flared.

 


8) Maruti's employee expenses as a share of net sales are the lowest among the five biggest domestic auto makers in India, at 2.4 per cent in the last fiscal year.

 


9) Maruti, already hit by rising costs on a weak rupee and falling sales, has seen its market value fall by over Rs 2,500 crore since the riot. Damage to the factory was estimated at $1 million, according to Reuters agency quoting an unnamed insurance surveyor employed by one of Maruti's insurers.

 

10) Suzuki executives said they were keen to establish Gujarat as their exports hub by 2015. In June 2012, the Gujarat government had allocated around 700 acres for Maruti's proposed plant near Mehsana. Maruti had said it would invest Rs. 4,000 crore to set up the new manufacturing facility in Gujarat by 2015-16. Maruti Suzuki has reiterated that it has no plans to shift Manesar plant to Gujarat.


(with inputs from agencies)

Story first published on: August 16, 2012 11:24 (IST)

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