Maruti announces 2-day production halt

Maruti Udyog Limited is facing an imminent industrial unrest with the management on Tuesday deciding to suspend production for two days to clear stock build-up at the factory, and workers union threatening to go on a tools down strike and mass casual leave terming the management's move as ''illegal''.

While union members alleged that the two-day production holiday is an attempt to evade strike, a senior official from the company's marketing department, when contacted, said that these are part of attempts to trim stocks.

''We generally keep around four days stock at the plant but with the slight slowdown in demand, the inventory build-up has gone up to six to seven days' level. So, we have decided to take two days of production off from today to clear stocks and trim down the stock build-up,'' the official added.

A circular issued by the management said, ''As the market conditions continue to remain sluggish, it has been decided to suspend production operations on September 19 and 20.'' Accordingly, all employees of the departments directly connected with production activities like assembly, paint shop, press shop and engine assembly have been asked not to report on duty on these days.

But Maruti Udyog Employees Union general secretary Mathew Abraham alleged that the sudden decision to suspend production was an attempt to sabotage their agitation against the management's failure to implement incentive payment.

''The union members had started hunger strike and the management decided to suspend production for two days,'' Abraham added.

Meanwhile, the company in a statement issued said that production has been rescheduled for two days to achieve stock correction at the plant.

''Maruti's wholesale and retail sales are at normal levels and are witnessing buoyancy especially in the last two months as a result of various marketing initiatives taken by MUL. Maruti's stock of vehicles at the factory rose due to slowdown in the month of June and the company has on various occasions, rescheduled production to check the inventory levels. The current level of vehicle stocks are marginally higher than normal levels (usually the company maintains stock of about four days production but the current levels have risen to about six days production). In order to achieve stock correction at the plant, the company has decided to reschedule production for two days,'' the statement said.

Around 3,000 Maruti employees have been protesting since this morning at the company's plant in Gurgaon demanding speedy settlement of the incentive payment issue. The union leaders are planning to demonstrate outside the company's corporate office in New Delhi on Wednesday.

Maruti is currently producing around 1,400 cars per day, with demand for its Maruti 800 and Zen exceeding production.

MUL managing director Jagdish Khattar had earlier said that discussions are on between the management and the employees union to finalise the incentive scheme. However, no conclusion has yet been reached.

''As always, the discussion between the union and the management are taking place in cordial atmosphere and there are no threats or discordant notes from either side,'' Khattar had said, adding that he was hopeful to reach a settlement at the earliest.

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