Wednesday, 9 November 2011

Workers at Maruti Suzuki adopt "Go slow" policy, Company offers Voluntary Retirement Scheme (VRS)

Workers at Maruti's subsidiary Suzuki Powertrain India Limited (SPIL) are not happy with the management decision of offering Voluntary Retirement Scheme. The workers have adopted "Go-slow" policy which means the workers are now working slowly at the major plant, SPIL which rolls out Diesel Engine for Maruti Suzuki.

The output has reduced to 60% of total capacity. Meanwhile, the company has adopted to go for Voluntary Retirement Scheme (VRS) which means the workers can go for Voluntary Retirement and can have their Full and Final from the company. The decision has been taken by the management in order to combat the strike at its Maruti plants.

This has also come out that 30 odd workers who were suspended took VRS from the company and have received Rs 16 Lac each from the management. This included leaders like Sonu Gujjar and Shiv Kumar.

In all Management has given Rs 5 Crore and the work has now started, though the production loss at Maruti goes much beyond to Rs 2,000 Crore.

"There was an inquiry against 30 of us, and we knew the outcome. So, all 30 of us decided to take the money from the company. We were not willing to fight with the company. There is nothing to hide as far as the amount received goes. All 30 of us got Rs 16 lakh each," said Shiv Kumar, union leader and former president of Maruti Suzuki Workers Union.

While the company says that corporate governance practices were properly followed, adding that the workers had resigned with a full and final settlement. However, institutional investors and independent advisors seem to be questioning the company's corporate governance on the grounds of lack of transparency and full disclosure.


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