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November 29, 2000
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Maruti to drop insistence on conduct undertaking

Maruti Udyog management has agreed to drop insistence on individual workers furnishing a 'good conduct undertaking' but disciplinary action pending against workers for alleged misconduct would be pursued, the government said in Lok Sabha on Wednesday.

Replying to a calling attention motion on the labour

unrest in the Maruti Udyog, Heavy Industries and Public Enterprises Minister Manohar Joshi said the government had proposed that the company union may furnish an assurance to the management that the employees would abide by the extant 'standing orders of the company'.

"Besides such an assurance, the union was requested to agree that disciplinary action pending against workers for alleged misconduct would be pursued in accordance with the appropriate labour laws and that the scheme of incentive notified by the management would be accepted," Joshi said.

Stating that the management had agreed to this course of action and to drop insistence on individual workers furnishing a good conduct undertaking, he said "The response of the union is awaited."

Expressing that the workers would find these terms of settlement acceptable as their principal demand that the good conduct undertaking be withdrawn was being acceded to, he said adding that it might be noted that the essence of the settlement was the spirit of collective bargaining and protection of the basic right of workers.

Joshi said he had held several meetings with the union representatives and management to resolve the dispute and bring about an amicable settlement between the labour and the management.

"It is important that discipline in the factory is maintained and profitability of the enterprise is not impaired particularly in the face of fierce competition that exists today in the market," he said adding that it was also important that rights of workers were protected.

The management had sought certain safeguards to ensure that harmony will be restored in the organisation and that the law will have to take its course in regard to disciplinary action taken against workers, Joshi said.

Unrest in MUL, a 50:50 joint venture between government and Suzuki of Japan, began in September mainly due to differences between the management and Maruti Udyog Employees Union regarding productivity linked incentive for workmen.

The management in October decided to notify a new incentive scheme to bring normalcy in the factory and sought a good conduct undertaking from workmen before entering the factory, the minister said.

The MUEU sought ad-interim injunction from the civil court against the good conduct undertaking, but the court dismissed the request. MUL has dismissed and terminated the services of 44 workers and 21 trainees and suspended another 10 workmen since the start of the agitation.

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