People’s Union for Democratic Rights
23 May 2013
Release of PUDR report ‘Driving Force: Labour Struggles and Violation of Rights in Maruti Suzuki India Limited’(May 2013) at Press Conference in Chandigarh
On 18 July 2012 a violent incident occurred at the Manesar unit of Maruti Suzuki India Limited (MSIL), in which an HR manager died and some other managers as well as workers were injured. Following reports of severe harassment of Maruti workers and their families in late July 2012, Peoples Union for Democratic Rights (PUDR) began a fact-finding investigation into the incident, its context and implications. We are releasing our findings today in the form of a report ‘Driving Force: Labour Struggles and Violation of Rights in Maruti Suzuki India Limited’ (PUDR, May, 2013). This report follows PUDR’s two previous reports Hard Drive (2001) and Freewheelin’ Capital (2007) which recorded crucial moments of the labour struggle at Maruti. In the course of our fact finding, we have met or spoken to the workers (contract, permanent and terminated), the union leaders, their lawyer as well as officials from the labour department, Gurgaon, and different police officials. All attempts to meet the management turned out to be futile because it did not give us appointment for a meeting despite our persistent efforts.
PUDR’s findings, recorded in the report are as follows:
(1) The events of 18 July 2012 at Maruti's Manesar unit are still heavily shrouded in ambiguity and the real culprits can be identified only if a thorough investigation is done by an independent agency which is not influenced by the management. The Haryana police have been consistently acting in a partisan manner favouring the management since the incident, and therefore cannot be entrusted with this task. The lack of an independent investigation into the incident has been amounting to a grave miscarriage of justice.
(2) In an absolute disregard for the rule of law, the entire blame for the incident was put on the workers not just by the management, but also the police and administration, long before the investigation was over. The nexus between the police and the management got exposed most starkly after the 18 July incident. The close correspondence between the FIR lodged by the police containing between 500 and 600 ‘unnamed accused’ and the termination of 546 workers by the company allegedly for being responsible for the violence on 18 July, cannot be a coincidence. It shows exactly how closely the police are protecting the company’s interests.
(3) This presumption of guilt governed the manner in which the police acted after the incident. The police arbitrarily arrested a large number of workers not through an investigation, but on the basis of lists provided by the management targeting the workers who were vocal, articulate and active in the union, subjected the arrested workers to brutal torture, violated the constitutional safeguards regarding detention and arrests and harassed the family members of the workers. Not only this it has been continuing to intimidate, target and attack the on going struggle of the terminated and other workers in order to silence and criminalise their legitimate protest (See Chapter Four). The scale of police action against workers seems to be aimed to act as a deterrent for any agitation in future – not only by these workers but also other workers in the Manesar and Gurgaon industrial area. Most recently on 18 May 2013, the Haryana police imposed Section 144 CrPC in Kaithal and arrested around 150 workers peacefully protesting there since 24 March demanding release of arrested workers and reinstatement of terminated workers.
(4) Another example of the police colluding with the management is that it has in the course of investigating the incident completely ignored the discrepancies in the management’s account, the fact that the workers were also injured, the presence of bouncers in the premises, or the fact that Awanish Dev, was always considered by the workers to be sympathetic to them. In fact it is the workers’ who have been demanding an independent investigation into the incident, a demand which has been ignored by the state and the central government.
(5) We wish to assert that an investigation and trial based on preconceived notions and not on the basis of scientifically gathered evidence could mean that those responsible for Awanish Dev’s death will go scot free and innocents will be penalised. A close look at the charge sheet filed by the police and denial of bail to the arrested workers shows that the case is moving in this very direction. This would amount to a travesty of law and denial of justice not only to the workers, but also to Awanish Dev.
(6) The incident should be seen in the context of the long chain of events that preceded it. It can be understood in the light of the continuous tension and conflict in the unit between the management and the workers as well as their persistent struggle of workers of the Manesar unit to register a union and draw attention to their inhuman working conditions.
(7) In September 2011, the Maruti management at the Manesar unit imposed a condition that the workers could enter the plant for work only after signing a 'good conduct' undertaking. The ‘good conduct’ undertaking effectively takes away the right of the workers to go on a legal strike, a right guaranteed by the Industrial Disputes Act (25T, 25U read with the Fifth Schedule); this also amounts to unfair labour practice as per Section 8, Fifth Schedule, IDA. (See Chapter Three)
(8) Like all other corporates, the main driving factor in Maruti is reducing production costs, maximising profits and competing against other companies. Maruti's expenditure on workers is among the lowest in automobile companies. Moreover the company adopts various measures to extract maximum work from itsworkers. At Maruti therefore, the production capability and targets are set considerably higher than the installed capacity, i.e., production capability of the company is 1.55 million units per annum even though installed capacity is 1.26 units per annum (Annual Report, Maruti Suzuki India Limited, 2011- 12). Workers are made to work non stop like robots for eight and a half hours, with a break of only 30 minutes for lunch and two tea breaks of 7 minutes each. For years, workers have been made to both report for duty 15 minutes before shift-time and also work for 15 minutes extra every day without any overtime payment. Further the policy on leave is very stringent and the leave record is directly linked to the wages which are deducted on account of any leave taken. This contributes to the regime of ceaseless production and drastic increase in work pressure on the Maruti shopfloors.
(9) The wage deductions on account of leave are made from the incentive-linked part of the wages of Maruti workers, under the Production-Performance-Reward Scheme. A single leave taken by a permanent worker, with permission from the supervisor, could also cost him a loss of Rs. 1200 to Rs. 1500. Both before and after the 18 July 2012 incident, a part of the wages is fixed, and a major component paid as incentive wages linked to production, profit and leave records, which makes the wages fluctuating. Norms of incentive linked wages have been arbitrarily fixed and changed by the management at Maruti's Manesar plant. (See Chapter Two and Three)
(10) Maruti management especially at Manesar have been resorting to use of temporary and contract labour as a norm, for regular work. In July 2012, according to figures tabulated by the Labour Department, less than 25% of the workers at Manesar were permanent. These workers are paid only for the days they work (i.e., 26 days a month) and considerably less than the permanent workers, for doing the same work. Not only is this a major cost cutting measure but it secures for the company a more vulnerable, disempowered and pliant work-force, less likely to be vocal and demand their rights. The company's announced after the 18 July incident, that it will regularise its workers. This is yet to materialise. (See Chapter Two)
(11) The Maruti management has also consistently violated the workers’ rights by creating hurdles and actively preventing them from organising themselves. The policy of the Maruti management not to let the workers unionise, is a violation of the Indian Trade Union Act (1926). Since mid-2011, as the workers’ struggle intensified, the management has responded by targeting active workers through suspensions, terminations and registration of false cases against them. Once the union got registered, its members and coordinators have faced similar or worse harassment. All the union leaders and many active members were implicated in the 18 July incident leading to complete breakdown of the union and making the workers vulnerable as they have lost all avenues of negotiation with the management. A large number of active workers were subsequently terminated by the company, as mentioned, because the company arbitrarily held them responsible for the 18 July incident. After forcibly removing the union from the unit, the company is now making a farcical gesture towards dealing with workers’ issues, by setting up a joint worker-management ‘grievance committee’ and compelling the workers to be a part of it. The legally registered union (MSWU) whose members are continuing to take up workers' issues are not being allowed to function inside the unit.
(12) The Haryana Labour Department has connived with the management in depriving the workers their right to unionise. In August 2011, it rejected the pending application of the workers for registration, citing technical grounds. Effectively, an application for registration filed on 3 June 2011, resulted in actual registration of the union on 1 March 2012, after months of fraught struggle. Moreover the Labour Department does not appear to have ever intervened in support of workers' rights in the labour disputes at Maruti. When the management deducted Maruti Manesar workers' wages on account of the lockout of 2011, by describing it as a strike, or when the management failed to act upon the Charter of Demands of workers in 2012, the Labour Department did not intervene. It has failed to question the management on its use of dubious and unfair labour practices, the 'good conduct undertaking' or the use of contract labour for regular work. (See Chapter Three)
(13) One of the notable features of the recent labour struggles at Maruti’s Manesar unit has been an unprecedented unity between permanent and contract workers. The labour union has consistently taken up issues pertaining to the contract workers. One of the main demands from the beginning of the struggle has been the regularisation of contract workers. The terminated workers who have regrouped under the MSWU include both permanent and contract workers. Contract workers are also among those who have been held guilty of the violence on 18 July and are now in jail.
What makes the Maruti story extraordinary is certainly not the company and its cars but the extraordinary struggle of its workers that has continued inspite of ruthless repression by the management and the police and failure of the labour department and the judiciary at all levels to provide any justice to them. Above all, the workers have tenaciously fought for their political right to form their own union. The struggle has also concentrated on creating democratic structures within the union, and through these, finding ways of articulating their grievances regarding the highly exploitative labour regime.
PUDR demands that:
1. An independent and unbiased judicial enquiry should be initiated into the events that led to the death of Awanish Dev. The judge nominated should be someone both parties are agreeable to.
2. The police investigation into the 18 July incident carried out by police officers of Haryana should be nullified and a fresh investigation be initiated, by an SIT comprising police drawn from other states.
3. The role of hired bouncers that led to the precipitation of the events at the spot be investigated.
4. The Haryana police officials, responsible for violation of legal guidelines regarding arrest and for custodial torture of arrestees, and harassment of their family members be identified and criminally prosecuted.
5. Re-instatement of all workers should be ensured in the absence of definite evidence of their involvement.
6. Role of the labour department should be investigated and action should be taken against the officials for not fulfilling their obligations related to labour laws.
7. All the workers arrested for the 18 July incident should be immediately granted bail. The trial into the incident should be speedily done and those not guilty should be acquitted.
8. Workers' right to have their independent union be restored at Maruti. The MSWU which is the legally recognised union of the Maruti Manesar unit should be allowed to function inside the plant with immediate effect.
9. All the contract workers both at Manesar and Gurgaon unit be immediately regularised and practice of hiring contract workers for regular work should be stopped.
10. The rights of workers guaranteed in law be enforced at Maruti with immediate effect.