Maruti to provide housing to its workers at Manesar and Gujarat; aiming at better relations with labour force

Tuesday 07 August 2012, 11:39 AM by

Country's leading car maker, Maruti Suzuki India Limited has been facing some serious trouble over last few days since the Manesar clashes forced shutting down of the unit. The car giant is now planning to build inexpensive houses for its blue collar employees in an attempt to improve their living conditions. The company is already looking for land to build low-cost housing units, according to Chairman, MSIL, R.C. Bhargava. Maruti is planning to build a minimum of 1,500 flats in the Haryana state and has similar intentions for Gujarat as well, where it is in the process of setting up its new manufacturing plant.

Bhargava said, “We believe that a house is the most important thing in anybody’s life and that’s no different in the case of workers. If we help them in solving this problem, they will also be respectful and work with full dedication.”

This move from the car maker will most likely help improving the hostile relations between the company management and the workers. Apparently, the reason behind the recent conflict was the underlying grudge of the workforce regarding the salary, working conditions etc. Evidently Maruti has been facing a lot of heat as its market share dipped 7 per cent to 38 per cent in the last fiscal owing to the recurring production shut-down at the Manesar plant. MSIL has ramped up losses worth Rs. 2,500 crores in all the disturbances faced at its manufacturing plant. This was sure to stir the nerves of the car maker and the decision to provide workers with low cost housing seems a right move in this direction, and comes at a right time.

Former Labour Secretary, Indian Government, Pravat Chaturvedi, enthusiastic about the new move from Maruti Suzuki, said, “I think it’s a great move. If they are providing housing to workers, they will be loyal to the company. They will have a sense of belonging to the company. They should get back to their earlier ways of working when everybody used to take inspiration from Maruti.”

It will be interesting to watch how exactly this move helps to improve the conditions at Manesar plant and whether the workers there bite the bait. If it does work out positively Maruti Suzuki will definitely benefit a lot from the whole process, since Manesar plant is where its best selling models, DZire and Swift are manufactured.

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