Reactions from Industry Associations on Maruti Manesar Plant Violence

While the Industry associations have released their statements condemning the unfortunate incident that lead to the death of a senior HR professional (Awanish Kumar Dev – GM HR, Maruti), it is yet to be seen how they can follow up with the government so as to ensure that the people responsible for the incident can be brought to justice. Industry associations and industry leaders need to take a tough stand so as to ensure that the employees are assured of a safe working environment, and businesses are assured of adequate support from the state & the government to operate their businesses. We have listed below the reactions from CII & ASSOCHAM on the Maruti incident.

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CII President Condemns Violence at Maruti’s Manesar Plant Jul 23, 2012

CII President, Mr Adi Godrej strongly condemned the recent violence that erupted at the Maruti Plant at Manesar resulting in the death of a senior company official and injuring more than ninety employees including some foreigners. According to the CII President, an incident of this nature was most unexpected especially since a dialogue was on between the management and the workers on unresolved issues.

Mr Adi Godrej, President, CII said “CII strongly believes that any disputes between the management and the workers must be settled through a discussion and a dialogue in a peaceful environment within the rubric of law. CII fears that this unfortunate event would dent the country’s image which might impact investors’ impressions of India in terms of safety of investments. On Industrial relations issues, it is imperative that an environment of trust is fostered. The management, workers and state government have responsibilities, which need to be discharged with sincerity.”

The CII release went on to say that it is also unfortunate that such an incident took place in Haryana which is considered to be an investor-friendly State. CII would urge the Government of Haryana to quickly investigate the matter and punish all those who are responsible for the unfortunate turn of events at the Manesar plant of Maruti. Swift and decisive action would help improve investors’ confidence. It would also help create an impression that the law and order situation in the state would not allow recurrence of such events in the future.

The CII release said that the development of an auto and auto component hub in the state of Haryana has created employment opportunities for a large number of workers. Foreign direct investment has flowed into a variety of sectors creating a virtuous environment of growth and livelihood creation. Industry will work hard to ensure that the positive environment is not affected by one incident of industrial unrest.

Statement by Mr Malvinder Singh, Chairman, CII (Northern Region) on Maruti Incidence of 19 July 2012

We deeply regret the incidence happened at Maruti and condemn the violence and vandalism. Loss of lives and scores of injuries caused by the sabotage by a group of workers is really unfortunate.CII strongly recommends that State of Haryana should administer this effectively and   enforce law and order so that such incidence would not be repeated.

This may definitely impact the investment in India in the short run. But we hope that the situation would be improved very soon and production at Maruti may be resumed at the earliest. CII would like to reiterate that both the Union and management of Indian manufacturing should learn from Maruti incidence and take appropriate steps to prevent loss of valuable man-hours and ensure desirable GDP growth.

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ASSOCHAM strongly condemned violence in Maruti
Thursday, July 19, 2012

Expressing its anguish, apex industry body ASSOCHAM has strongly condemned the violence in Maruti Suzuki premises resulting death of a person and injuries to several others.

The Chamber Secretary General D.S. Rawat while extending appeal to the workers and the management to amicably resolve their dispute, if any, in the overall interest of the development of Haryana in particular and the Nation in general.

Mr. Rawat said, “the country can ill-afford any disruption in the economic activities at this critical juncture.  In Northern India it is only Gurgaon which is witnessing labour troubles continuously and, therefore, the workers and the management should be more vigilant from the outside element.  The State government should also deploy more police force and take possible preventive measures.

Though Haryana has been attracting investment in the services and real estate sectors, the manufacturing base has not been expanding.  The frequent labour trouble has been responsible in compelling the existing units to expand outside the State, said Mr. Rawat.

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