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July 22, 2012

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Suzuki locks out workers at Indian plant

INDIA'S largest carmaker, Maruti Suzuki, said yesterday it will not resume production at a factory hit by rioting during a labor dispute until an investigation is complete into the causes of the violence, which killed one executive and injured dozens of others.

The plant, one of two operated by the company in India, halted production on Wednesday night because of fire damage caused by the rioting. The company is a subsidiary of Japan's Suzuki Motor Corp.

The body of Avnish Kumar, the human resources manager, was found badly charred in a conference room after the rioting. Of 90 injured managers and executives, 24 with arm and leg fractures are still being treated in hospitals, Maruti Suzuki said.

"What has happened is an absolute shocker to us," Chairman RC Bhargava told reporters in New Delhi yesterday.

Bhargava said a new wage pact was being negotiated with the workers' union but there were no other outstanding labor issues.

He said production would not be resumed at the factory in Manesar in the north Indian state of Haryana "until we are able to identify the causes and apply correctives" to guarantee the safety of managers and workers. The plant makes 550,000 vehicles a year.

The company said the unrest was sparked when a worker beat up a supervisor. It said the union prevented management from disciplining the worker, blocked exit gates and "held the executives hostage."






 

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