Maruti Suzuki – Manesar factory – No idea when riot-hit factory will reopen

Maruti Suzuki(MRTI.NS) has no idea when the Manesar factory hit by a deadly riot this week will reopen, the carmaker’s chairman acknowledged on Saturday, saying it was impossible to import extra vehicles or shift lost production to another plant.

India’s biggest car company stopped production at a factory in Manesar on Wednesday after a manager was killed and scores injured after a mob of workers attacked officials, smashed equipment and set fire to parts of the plant.

Trade unionists have accused Maruti of “anti-union” activities at the plant, shut for weeks last year due to labour unrest.

“We cannot start production due to a danger to life and safety,” Chairman R.C. Bhargava told a news conference in his first public remarks following the violence. “We will not endanger our people any further.

“How long it will take? 10 days? 15 days? I don’t know,” Bhargava added. “We’ll put all our resources to study and help the authorities but … I cannot say when we will be able to restart the plant.”

Maruti officials, addressing reporters, denied press speculation that the company would close the Manesar plant.

via Maruti says no idea when riot-hit factory will reopen | Reuters.

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Jobs stagnate, lay-offs on the rise

Over the weekend, when Maruti Suzuki declared a lock out at its Manesar plant in Haryana, it didn’t just put jobs of the 3,000 workers employed there at stake. Workers in the ancillary units of the company too could be in trouble.

The violence and lockout came on top of months of slowing growth of the Indian economy, depressed export markets, poor consumer demand, high interest rates, and lack of a policy stimulus — which is now pushing companies to freeze salaries and resort to lay-offs.

Plus, with the government refusing to amend labour laws, companies increasingly prefer using contract workers at lower wages instead of hiring them outright — the proximate reason why unrest flared at Maruti.

Official data shows that employment in eight key sectors during the January-March 2012 quarter grew slowest compared to the three previous ones. This coincided with economic growth falling this quarter to a nine-year low of 5.7 per cent.

The latest Quarterly Quick Employment Survey of the Labour Ministry pegs job addition in the fourth quarter of 2011-12 at a mere 0.81 lakh as compared to 2.26 lakh jobs in the previous quarter. It covered sectors such as textiles, leather, metals, automobiles, gems and jewellery, transport, information technology, BPO and handloom, powerloom…

via Jobs stagnate, lay-offs on the rise – Indian Express.