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This is an archive article published on September 25, 2011

‘We have the staying power’

R C Bhargava,Chairman,Maruti Suzuki,was the Chief Managing Director of the then government-owned Maruti Udyog Ltd from 1990 to 1997.

R C Bhargava,Chairman,Maruti Suzuki,was the Chief Managing Director of the then government-owned Maruti Udyog Ltd from 1990 to 1997. Today,he is the public face of the Rs 37,522-crore company. Taking a tough stance on the latest face-off between the management and workers at the company’s Manesar unit,he says,“We have to take a long-term view. We are not in this game for a few months or years.”

If the workers are striking,isn’t there a disconnect between them and the management?

The kind of education that was done in Gurgaon was not done in Manesar. I have always maintained that if labour trouble takes place,whatever the other reasons,the management has also been at fault. No labour trouble will ever take place without the management at least in some areas not having done what they should have done.

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There is a huge resentment against the good conduct bond that you want the workers to sign. Also,its legality is being questioned.

A good conduct bond only says you will work according to the Standing Orders. While the Orders allow the management to dismiss them,a good conduct bond merely gives workers a second chance. It is legal. They (the workers) know what the reality of the legal position is. They have the best of lawyers,they are not ignorant people. It is collective versus individual commitment to maintain the Standing Order. My only other option is a lockout.

But what was the provocation for such a bond at the Manesar unit?

The production was very low,kind of go-slow,followed by acts of sabotage. Between August 23 and 28,150 incidents of sabotage were reported. We had no choice but to ask for a good conduct undertaking. The risk of even more serious damage was very high.

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Is signing of the bond the only solution to bringing an end to the industrial problems?

Signing the bond is not the solution to the union problem,but it is required to get the work done in the right way. The only reason I can see for a worker not wanting to sign it is because he wants to continue to indulge in the kind of things that he has been doing. I would rather lose production now than to become impossibly constrained in working in the future.

But there is a certain level of discomfort within the management with Manesar plant workers demanding a separate union.

We are quite willing to discuss. We always tell the worker that if you have a political union,it is going to be against your interest in the longer term. It will lead to strikes and problems. For example,in the Gurgaon plant,look at the kind of benefits they have. They own houses,their children go to Delhi Public School,they are eligible for medical treatment at any hospital. We have informally since June talked to these guys,saying that we do not mind your having an independent union,but let it be independent,remove provisions of outside office bearers. That doesn’t satisfy them.

How far have the negotiations reached?

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Their (workers’) demand is that all these guys (62 suspended or dismissed),including those who indulged in violence,be unconditionally taken back. Talks have been going on,but there have been no results because their attitude has been very adamant. We had agreed to the state labour department’s request to take back dismissal orders for 18 workers. But workers don’t accept it.

How long can the company afford to let this situation continue?

We can afford this strike as long as we want. We have the staying power. What will happen? We have lot of time. We have to take a long-term view. We are not in this game for a few months or years.

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