Maruti driving to Gujarat?

[bharti]

Dear All,
This was the front-page news in yesterday's TOI
http://timesofindia.indiatimes.com/business/india-business/Labour-unrest-may-drive-Maruti-to-Gujarat/articleshow/10408034.cms

The labour unrest has been going on there for quite some time and I was expecting a discussion on this here on Jatland.
But even the front-page headline failed to grab attention of Jatlanders.

What about Haryana Government? Will it recover from the defeat in Hisar and look into other matters of concern?
What steps are being taken by the government? Any idea?

regards,
bharti.

 

[vicky84]

It is very sad and disappointing to see that businesses are moving away from Haryana. Haryana is no longer an ideal place to start a business. There are many reasons behind it:

1. Sky Rocketing Property Prices

2. High Labour Rates.

3. Labour shortage as many development projects are going in Bihar,U.P and many are in the pipeline.

4. Haryana Government's bad labour policies.

5. Bad planning and lack of initiative by Haryana Government.

6. Bad cooperation with Industries.



Bad practices and policies have discouraged a lot of business to set up industries in Haryana. The poor infrastructure is costing industries a fortune. Industries have to arrange for electricity, water, roads etc.


Whereas in contrast, Gujrat Government provides a good infrastructure for business. Less bureaucracy, less red tape, effective government policies, ease of doing business. Like 24 hour electricity access. Gujrat is producing surplus electricity whereas Haryana is struggling to meet the electricity needs.

Thus Industries have to arrange a lot on their own which cost a lot and discourage businesses.



Lately, I came across an article on NDTV. Which is quite intreseting to read and shed light on how Haryana Government cooperates with businesses.

Link:

http://www.ndtv.com/article/cities/the-gurgaon-story-a-mirror-to-indias-growth-111106

 

[vishalsunsunwal]

@Bharti Malik Sindhu ji, i feel very sorry to know this, but actual responsibility is of govt. & the current govt. is of congress. there are many Jatlanders here & every where else who didn't like this news.

 

[rakeshsehrawat]

Dear All,
This was the front-page news in yesterday's TOI
http://timesofindia.indiatimes.com/business/india-business/Labour-unrest-may-drive-Maruti-to-Gujarat/articleshow/10408034.cms

The labour unrest has been going on there for quite some time and I was expecting a discussion on this here on Jatland.
But even the front-page headline failed to grab attention of Jatlanders.

What about Haryana Government? Will it recover from the defeat in Hisar and look into other matters of concern?
What steps are being taken by the government? Any idea?

regards,
bharti.

Suzuki already had expension plans now they are trying to get benifit from situation. They were looking for land from last year and almost in finalization stage now. They crossed 1 million landmark last year and want to become one of leading manufacturer of cars. for the sme purpose they purchased land in Rohtak for setting up design and testing facility. This is not a big issue companies shift or expand.

Anyways please not that it is no more Maruti it is completely japanese company now.

 

[bisky]

Suzuki already had expension plans now they are trying to get benifit from situation.

No doubt in this that they are trying to get benefit from situation. If anybody is serious about knowing the real conditions, he/she should have to go to Rohtak IMT and try to see how many Jaats r working there except class 4th. or in the logistics(only drivers and guards). Though the Congress Party is epitome of the corruption. But Govt. can do only a mediocre there n nothing else. They want a win-win situation every time and they've been always successful in it.
आप क्या समझते हैं? वो हरियाणा में इसलिए हैं कि उनके हरियाणा से भावुक संबंध हैं। वे यहाँ पर जन-मानस की सेवा, रोजगार सृजन तथा सरकार के चाहने पर बैठी हुई हैं। कतई नहीं। भावुक हम हो सकते हैं कि हमारे कई भाइयों का रोजगार छिन सकता है। लेकिन एक बात यहाँ पर जान लेना जरूरी है - जितना आसान हमारे बच्चों का रोजगार छिन जाना है उससे अधिक मुश्किल उसका यहाँ से जाना है।
Thanx.

 

[singhvp]

Dear All,
This was the front-page news in yesterday's TOI
http://timesofindia.indiatimes.com/business/india-business/Labour-unrest-may-drive-Maruti-to-Gujarat/articleshow/10408034.cms

The labour unrest has been going on there for quite some time and I was expecting a discussion on this here on Jatland.
But even the front-page headline failed to grab attention of Jatlanders.

What about Haryana Government? Will it recover from the defeat in Hisar and look into other matters of concern?
What steps are being taken by the government? Any idea?

regards,
bharti.

Bharti ji, it seems Hooda Sahab has read your post. The strike is already over. Hope things will move in right direction now.

Labour unrest is, indeed, a big dampener for India's success story. West Bengal, which used to be an important industrial hub, is an example. But, political parties are more concerned about their petty interests and have less concern about economic growth. Strike is a fundamental right but excessive trade unionism certainly kills the entrepreneurship.

 

[rakeshsehrawat]

1200 workers sacked in a single day because markets were down and this normaly happens in last quarter of year and this time the fear of recession is also a reason. Inflation going at peak and you are sacked probably you will also try to do samething.

If there were no strike then also suzuki would have purchased plant in Gujrat and still will purchase but that is due to their expension plans. Labour class is also humans and they are least responsible for troubles.

 

[singhvp]

Sacking of anyone is not justified, even if the company may have to be closed down. In that scenario it becomes liability of the government to save the sinking ship of that company and this is done by Governments in developed world. America is a case in point. When companies like Lehman Brothers and Citi Group were on the verge of bankruptcy Federal Government came to their rescue.

 

[kapdal]

Sacking of anyone is not justified, even if the company may have to be closed down. In that scenario it becomes liability of the government to save the sinking ship of that company and this is done by Governments in developed world. America is a case in point. When companies like Lehman Brothers and Citi Group were on the verge of bankruptcy Federal Government came to their rescue.

Sir- Lehman Brothers defaulted. You may be talking about its purchase by Barcap in US and Nomura in London, but that happened post default when these companies cherry picked the units they wanted. Several people lost their jobs (I know some personally). Many other banks were rescued, but not with the intention of saving workers. These banks are too big to be allowed to fail. Nevertheless, many people even in the surviving banks lost their jobs.

In general, west has very liberal labour laws. Both hiring and firing can be done easily and happens very often. The nature of any business is such that if firing is difficult, like in India, the employer is not keen to hire. Result is that many people get hired on contracts, rather than permanent employments that offer more benefits. Or even worse, they are pushed into non-organised sector where they are not even shown as employees.

 

[jsrana]

It is very sad and disappointing to see that businesses are moving away from Haryana. Haryana is no longer an ideal place to start a business. There are many reasons behind it:

1. Sky Rocketing Property Prices

2. High Labour Rates.

3. Labour shortage as many development projects are going in Bihar,U.P and many are in the pipeline.

4. Haryana Government's bad labour policies.

5. Bad planning and lack of initiative by Haryana Government.

6. Bad cooperation with Industries.



Bad practices and policies have discouraged a lot of business to set up industries in Haryana. The poor infrastructure is costing industries a fortune. Industries have to arrange for electricity, water, roads etc.


Whereas in contrast, Gujrat Government provides a good infrastructure for business. Less bureaucracy, less red tape, effective government policies, ease of doing business. Like 24 hour electricity access. Gujrat is producing surplus electricity whereas Haryana is struggling to meet the electricity needs.

Thus Industries have to arrange a lot on their own which cost a lot and discourage businesses.



Lately, I came across an article on NDTV. Which is quite intreseting to read and shed light on how Haryana Government cooperates with businesses.

Link:

http://www.ndtv.com/article/cities/the-gurgaon-story-a-mirror-to-indias-growth-111106

Atish ji May be Hyundai & Volkswagen are spending hefty sums for labor unions so that strike at Suzuki continues and they sell maximum cars during this festive seasons.

 

[abhikrana]

Even Maruti has benefited from its Gurgaon Location

As a few of my fellow members suggested even Maruti Suzuki has benefited from having Gurgaon as its launch pad and manufacturing hub in India. Gurgaon, being the next door neighbour to Delhi, offered easy access to the corridors of power (policy making and implementation), middle and upper class market having relatively deeper pockets, access to highly skilled and upscalable workforce from Delhi/NCR, etc.

Before terming the Labour demands as just or unjust, we need to get into the details of the demands. However, most of the media it seems is siding with the company. Even the labour department it seems is siding with the cash rich company. Though the capitalist (company) has the last say on the terms of employment, we cannot undermine the contribution of the labour/workforce, which has been instrumental in Maruti attaining and still maintaining No. 1 car brand position in India. From whatever facts I know, a few of the labour leaders were sacked when they demanded the formation and recognition of a new labour/trade union. This was a very unfortunate situation as the company cannot sack its employees according its whims and fancies - when it is perfectly legitimate for the employees to form unions. In fact, much of the energy and focus of the companies today goes on to prevent the formation of Trade Unions. All types of ploys are used - including patronage to pro-management groups which discourage the other workers to form unions, sacking (on one pretext or the other) of those who take initiative in the formation of unions, etc.

The company is trying to blacklist the workers from Haryana by calling them as 'Militant'. The threat to blacklist the workers and to shift to Gujarat reminds me of Indian History (from whatever knowledge of history I have). One Maharaja vying with the other to get East India Company or the French/Portuguese to set up shop in their kingdoms. Well, it would have been better had the Govt. of India intervened and if there was an unjust behaviour on part of the company, told the company in Clear and Certain term that the labour in India are the same everywhere and they cannot be compared (militant/non-militant) and taken for granted. After all, India has given to Maruti Suzuki a lot as well by providing a HUGE MARKET for its cars. If Maruti Suzuki closes shop in INDIA, even they stand to lose. Of course, I would at the same time, expect the labour/trade unions to exercise self restraint to the extent that their legitimate rights are not affected. Majority of the Indian corporates are exploiting the worker class by not properly following the provisions of Contract Labour (Regulation and Abolition) Act, 1970.

 

[vicky84]

Atish ji May be Hyundai & Volkswagen are spending hefty sums for labor unions so that strike at Suzuki continues and they sell maximum cars during this festive seasons.

Well I do not know what politics is behind it. Who's pushing it. Who's playing. I have heard of 'Sonu Gujjar' who is heading these unions. But whoever is behind this politics, I would still blame the 'Complex labour Laws'. As Kapil mentioned in this thread that, west has liberal labor law where hiring and firing is very easy. Whereas in India, it is just opposite. The retrenchment of staff is not that easy.So labour unions have more command and they can be more demanding . But that does not mean that unions should not exists. Even if such laws exist, the Haryana government should have some proactive steps to stop this strike. Maruti was unhappy the way Haryana government handled this strike. If Maruti moves to Gujrat, it will hamper the Haryana's economy. This strike has diminished the image of Haryana as a mainland for business.The businesses who will be investing in Haryana will definitely think about these strikes and the way Haryana government has handled these strikes.

As far as labour laws are concerned, I think we need reforms otherwise it might happen again and again. The state government has powers to reforms labour laws and can have its own set of labour laws and policies.Its not that our ministers do not know about reforms. But whenever someone tried to bring in a change, he/she was criticized by political parties, unions etc. The widespread criticism resist a government to bring these changes which are long overdue and hurting Indian economy very badly.

 

[vicky84]

More on complex labour laws in India :

According to World Bank :

India’s labor regulations - among the most restrictive and complex in the world - have constrained the growth of the formal manufacturing sector where these laws have their widest application. Better designed labor regulations can attract more labor- intensive investment and create jobs for India’s unemployed millions and those trapped in poor quality jobs. Given the country’s momentum of growth, the window of opportunity must not be lost for improving the job prospects for the 80 million new entrants who are expected to join the work force over the next decade.



The Industrial Disputes Act (1947) requires companies employing more than 100 workers to seek government approval before they can fire employees or close down. In practice, permissions for firing employees are rarely granted.

http://en.wikipedia.org/wiki/Indian_labour_law

 

[rakeshsehrawat]

Indian Labour laws are definately complex and biased in favour of Labour rather then management. I personally feel that this is right approach otherwise in fear of capital disinvestment we will always be under pressure and govt. will be run by companies as it i happening in US and Europe. Once i heard that an automobile gaint was under same situation threatened state govt. to take its plant back to their country. Reply of CM was take your bags but not anything else we will run the company on our own. You are earning hell lot money from our country and not thinking to distribute that even with your labour who are mainly responsible for your earnings. And stand of company was that it remained and had good discusion with labour union and settled the matter.


Dear Friends companies are not here because our country needs them but because they need our country. This is largest market now for various products or better if i say almost every product. Companies are not giving anything to our country but it is us that are giving them livelyhood. If somebody walks out of state he is not walking out of country i feel that states must come togeather and form a union. For your information there is union of manufacturers like Hero have certain vendors/suppliers form a hero supplier club. Engineers/Managers/Workers can not switch from one company in supplier club to another. In same way there are supplier clubs in Suzuki, Honda etc. Suzuki had a union in Gurgaon plant and now that they had setup a plant in IMT Manesar the labour over there also had a unioun which wants to be recognised as a seprate union as they feel that union in gurgaon plant is run by management people. I don't think that there is hardly any problem in that.

Up to now no dealer of suzuki had faced any shortage of any model as suzuki had already manufactured enough cars sufficient for sale up to december 2011.

 

[spdeshwal]

Suzuki is not moving any of its existing production or RND units but expanding in Gujrat. It is their legitimate right to do so. Secondly, if the company had to expand, the management would go for the best available options. Considering the factors like land Value, power Generation etc, prob. Gujrat is a better option for the company's point of view.

Second point discussed above is about laying of the work force. in fact Indian labour Acts have enough teeth but the implementation is always questionable. It is the deep rooted corruption in the enforcement agencies that is responsible for most illegitimate decisions against the workers.
In fact, it is very common for the workers to loose jobs in developed countries. Thousands lost jobs in 2009, whereas her economy suffered minimum during that face of recession. In fact the concept of a benevolent employer doesn't exist in developed countries.

Cheers!

 

[jagmohan]

Also read between the lines...

Dear Friends,

There can be another angle to this whole thing which may be unseen or unheard at this moment but one can't rule out the possibility. This strike can be also engineered by vested interests in the government and corporates so as to relocate Maruti Factory to Gujarat or any other state. Many members may remember how and why the Cotton Mills in Mumbai were closed down. The cycle was strike - lockdown - shutdown - vacate - builders buy the land - sell commecrcial complexes and flats - make billions.

Therefore, don't rule out the possibility of all major factories that have large land holdings in Delhi NCR shutting down in the future, say in next 15 - 20 years. The market rate of land occupied by these companies is much more than the cost of shifting / establishment a factory in any part of India. FIAT India shifted from Kurla to Ranjangaon in Maharashtra in 2006 - 07. Land was sold to Kohinoor Builders. All were happy. Factories in Sahibabad are closing down and multiplexes are coming up.

Wishing you all a very happy diwali.

Best regards,

JS Malik

 

[jsrana]

Up to now no dealer of suzuki had faced any shortage of any model as suzuki had already manufactured enough cars sufficient for sale up to december 2011.[/QUOTE]

Rakesh Ji I agree on your other views but kindly note that there is an acute shortage of Swift
model especially the diesel variants in Delhi. Suzuki dealers are booking these cars with lead time
of six months in Delhi.

 

[rakeshsehrawat]

Up to now no dealer of suzuki had faced any shortage of any model as suzuki had already manufactured enough cars sufficient for sale up to december 2011.[/QUOTE]

Rakesh Ji I agree on your other views but kindly note that there is an acute shortage of Swift
model especially the diesel variants in Delhi. Suzuki dealers are booking these cars with lead time
of six months in Delhi.

If you need i can arrange one for you. Actually these type of shortages were made so that dealers can earn black on them this shortage is since from launch of Swift deasel. As Suzuki is buying diesel engines from Fiat so they don't want to keep inventory to avoid any inventory loss.

 

[jsrana]

If you need i can arrange one for you. Actually these type of shortages were made so that dealers can earn black on them this shortage is since from launch of Swift deasel. As Suzuki is buying diesel engines from Fiat so they don't want to keep inventory to avoid any inventory loss.

Thanks Rakesh Ji, in fact we are in need of one Swift VDI. Shall we speak on phone since this is not the right forum to discuss this issue. Kindly provide me your L/L or Mob Number.

Thanks again.

 

[fateh]

It is very sad and disappointing to see that businesses are moving away from Haryana. Haryana is no longer an ideal place to start a business. There are many reasons behind it:

1. Sky Rocketing Property Prices

2. High Labour Rates.

3. Labour shortage as many development projects are going in Bihar,U.P and many are in the pipeline.

4. Haryana Government's bad labour policies.

5. Bad planning and lack of initiative by Haryana Government.

6. Bad cooperation with Industries.



Bad practices and policies have discouraged a lot of business to set up industries in Haryana. The poor infrastructure is costing industries a fortune. Industries have to arrange for electricity, water, roads etc.


Whereas in contrast, Gujrat Government provides a good infrastructure for business. Less bureaucracy, less red tape, effective government policies, ease of doing business. Like 24 hour electricity access. Gujrat is producing surplus electricity whereas Haryana is struggling to meet the electricity needs.

Thus Industries have to arrange a lot on their own which cost a lot and discourage businesses.



Lately, I came across an article on NDTV. Which is quite intreseting to read and shed light on how Haryana Government cooperates with businesses.

Link:

http://www.ndtv.com/article/cities/the-gurgaon-story-a-mirror-to-indias-growth-111106

Very correctly covered. Brother your points are applicable to all four houses rule of Haryana.