Friday, June 17, 2011

Maruti Suzuki ends strike: Report

India's largest carmaker Maruti Suzuki ended a 13-day strike late on Thursday that has cost the company more than USD60 million, the Press Trust of India quoted a government minister saying.

Employees of the company, 54.2% owned by Japan's Suzuki Motor Corp, were striking to demand a new union be recognised by the management.

"An agreement has been signed and workers have decided to call off the strike. They will resume work from tomorrow", said Haryana state labour secretary Sarban Singh, the Press Trust of India reported.

It was not immediately clear if the workers' union demands were met.

India's auto sector has seen spurts of industrial unrest over the past two years and the strike has raised questions over how India will preserve its status as a low-cost manufacturing base while avoiding growing discontent among employees.

India's labour laws are rated by the World Bank as among the most rigid and some analysts say they hurt corporate competitiveness in Asia's third-largest economy.

Maruti, which operates two manufacturing facilities in India, has fired 11 workers at the Manesar plant since the strike began, citing indiscipline.

Media reports said employees had demanded the 11 workers be reinstated. Singh said the company had reinstated them and a disciplinary inquiry would be initiated against them, the news agency said.
source-http://www.moneycontrol.com/news/business/marutisuzukiendsstrike_557986.html

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