Maruti union threatens indefinite closure

The workers' union of Maruti Udyog Limited on Wednesday threatened to go on an indefinite strike and stall production if demands for revision of incentive and new pension schemes were not met, even as the company's shareholders met in New Delhi and approved 25 per cent dividend payout for 1999-2000.

The hurriedly-called AGM was held for only 30 minutes, the shortest in the company's history. The shareholders also approved the financial results for the 1999-2000 fiscal, senior company sources said.

Even as the AGM got underway, around 1,500 plant workers from MUL's Gurgaon facility were agitating outside the company's corporate office demanding commencement of production-linked incentives, a better pension scheme and other benefits.

Slogans like 'Management, down down', 'Jagdish Khattar must go' rent the air. The union leaders stated that in case their demand for an early settlement of the dispute is not met, the workers will resort to a tools-down strike and even go in for indefinite closure of the factory and sit on fast unto death.

''We are not bothered if the factory runs or not. We do not want to promote such unfair labour practices where promised benefits are not being delivered to the workers. We are open to meeting the management and exploring all avenues of settlement through dialogue. But if our demands are not met, we will intensify the agitation,'' Mathew Abraham, general secretary of Maruti Udyog Employee Union, said.

The MUEU members have also threatened to seek support from national trade unions like AITUC, CITU and INTUC for the purpose.

The management, he said, has already convened a meeting with the union members on September 23. Stating that the union was willing to commence unconditional talks with the management, Abraham said, "Mr Khattar has also asked us to meet him today. But he wants the agitation to be withdrawn first. We are willing to start talks with the management but will not withdraw the agitation. There will not be any pre-condition for the talks.''

The union has also demanded reinstatement of its president Dinesh Kumar and executive committee member J K Sharma, who were suspended on charges of misbehaviour on August 15. "This is unfair labour practice and we want this to be reversed immediately,'' Abraham said.

Meanwhile, the shareholders approved the 36.7 per cent decline in MUL's net profit for the 1999-2000 fiscal at Rs 3.30 billion as against Rs 5.22 billion a year ago. However, its turnover, riding on increased sales of its passenger car models, was higher at Rs 96.73 billion, up 19.1 per cent from Rs 81.18 billion a year ago.

The members of the company's board of directors noted that the net profit has been plagued by depreciation on its huge investments made for introducing new models and upgrading existing models following implementation of stricter emission norms during the year, the company sources said.

The company suspended production for two days in a desperate bid to clear stock build-up at the factory, while the workers union threatened to go on a tools down strike and mass casual leave terming the management's move as ''illegal''.

Regarding the demand for revision of incentive scheme, Abraham said, ''Under the memorandum of understanding between MUL and government of India in 1986, the government had agreed to share 65 per cent of the additional gain of productivity with the employees.

Following several board resolutions, a scheme was later floated under which the base productivity level was set at 43 vehicles per direct employee. As against this, we had last year achieved production levels of 92 vehicles per employee. But if we cannot get the incentives of this extra production, we will have to go back to the levels of 43 vehicles per employee.''

Meanwhile, the union has been in talks with the management over the issue since March 1999, when the previous incentive scheme expired. In addition, the previous wage settlement also expired in March 2000. ''But we want the incentive scheme to be settled first before the other issues are taken up.''

Abraham further alleged that the pension scheme and promotion policy are not being implemented. Further, the scheme of rewarding jobs to employees' children is also not being implemented. ''We want these issues also to be settled.''

The management has refused to pass on the benefits citing increased competition and lower margins. ''But we have helped the company save Rs 580 million directly by increasing productivity. As per the MoU, we should be getting 65 per cent of this saving, but the management is not prepared to distribute it.''

The management, he alleged, is using pressure tactics and has suspended MUEU president Dinesh Kumar and executive member J K Sharma on charges of misbehaviour.

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