Maruti Suzuki faces legal notice from Labour Department

Haryana government affiliated labour department has filled a challan against Maruti Suzuki under Section-9C of the Industrial Dispute Act 1947 for the alleged 'violation of settlement' that was signed on October 19, 2011. This was in view of the company violating the agreement with its workers at Manesar plant. The five managers of Maruti Suzuki who signed the agreement on 19th October will be prosecuted for the violation of the agreement.

Deputy Labour Commissioner, Haryana labour Department, J.P. Mann, confirmed, "We have initiated prosecution proceedings against Maruti for violating the agreement with the workers' last year. They have not formed any of the two required committees - Grievance Redressal and Welfare Committee - that has forced us to take this action in the interest of the workers."

The largest car maker of the country agreed to create a statutory 'Grievance Redressal Committee' and 'Labour Welfare Committee' at its Manesar plant, which it has failed to do so till date. These two committees would have enabled the workers to share their grievances with the administration. On the other hand, a separate 'Maruti Suzuki Worker's Union' has been set up at the facility. A 59-day-long strike was staged by the employees at the Manesar plant last year, demanding a separate union and these two committees. The strike caused Rs. 2,500 crores worth of losses and loss in production by 1 lac cars for the company. It was an attempt by the employees to improve the working condition at the plant.

On being probed about the situation, Maruti confirmed receiving the formal notice from labour department. According to a company spokesperson, "As the matter is sub-judice, we feel it will be inappropriate for the company to comment."

In the agreement signed with the Labour Department, which was initiated by Haryana government, Maruti agreed to elevate its employee confidence by electing workers representative for the 'Grievance Redressal and Labour Welfare' committees. The proceedings on the hearing are expected to start in the next couple of days at the Gurgaon CJM court.