Workers' inputs helped Maruti save Rs 160 cr

At a time when frequent labour unrests are plaguing the Indian auto industry, car market leader Maruti Suzuki India (MSI) was able to save about Rs 160 crore in 2010-11 by implementing suggestions given by its workers.

"We have active engagement programmes going on in the company. We encourage our people to give their inputs that could increase efficiency and save money," MSI Managing Executive Officer (Administration) SY Siddiqui told PTI.

The company rewards its people for giving suggestions through letter of appreciations, movie tickets, dinner coupons and family vacations, he added.

Siddiqui, however, did not reveal how much the company saved during the last fiscal and said: "In 2009-10, we saved Rs 200 crore. This was mainly because of a special drive done by Suzuki Motor Corp and its other subsidiaries in that fiscal."

Sources said according to estimates, the company saved about Rs 160 crore during 2010-11.

The company had received about 2.29 lakh suggestions last fiscal compared to about 1.29 lakh suggestions in the previous fiscal, he added.

"The range of suggestions vary from some smallest works to very significant improvements and we reward people for the active participation," Siddiqui said.

When asked how the company manages its workforce, which has remained insulated to labour unrests despite being in a volatile Gurgaon-Manesar belt, Siddiqui said: "Transparency at all level is most important. A highly engaged workforce will never ever go against the company."

This is in sharp contrast to the company's past when strike by its workers crippled productions for three months from November 2000 to January 2001.

Since then the company has had a stable relationship with its workers. When the MSI's sales crossed one million in 2009-10, the company celebrated the milestone by gifting a gold coin to each of over 8,600 employees.

Siddiqui said the management tries to maintain good relations with the workers even when everything is peaceful and not in a reactionary manner when something goes wrong.

In recent years, the auto industry faced several instances of labour unrest resulting in production losses in different facilities of many companies.

At present, labour unrest has been hitting car maker General Motors badly with its Halol facility in Gujarat facing 23rd day of agitation today with a production loss of about 1,200 units so far.

In June last year, a section of workers at the Hyundai's Sriperumbudur plant went on a three-day strike. It was called off following a government-brokered deal after the carmaker lost about 2,000 units every day on an average and around Rs 65 crore due to the strike.

Apollo Tyres' Perambra facility in Kerala was locked out for more than two months after labour unrest hit the facility in April last year. The entire episode cost the company about Rs 600 crore in revenues.