Sunday, August 19, 2007

MY Mmoment - Jagdish Khattar - TOI 19.08.2007

MY Mmoment

A strike couldn’t break us

JAGDISH KHATTAR MD | MARUTI SUZUKI INDIA



In October 2000, the labour union protested against the management's decision to link bonus and incentives to productivity and efficiency. Almost 90 per cent of the workers agitated outside the factory, demanding that the decision be reversed.

What started out as an attempt to improvise on quality standards to become a competitive force in a liberalised economy, became an unpleasant situation. Some of the workers decided to go on a fast unto death.

The primary concern was that production should not stop. We got some employees from our suppliers and, along with supervisors and managers, got the plant started again in a week's time. But the story was far from over. There was indirect pressure from the government and the case was being discussed in parliament. Every move of the management was being noticed, for a lot was at stake — if the management of the country’s largest car maker succumbed, it would set an avoidable precedent for smaller companies.

The deadlock continued for 90 days As pressure mounted from the government and politicians, we had hours of heated arguments for and against our stand. After all, it had been over three months and how long could we continue? Often, I would have my doubts too. For, we were dealing with human lives here. Not only of our employees, but also of their families.

But I was aware that it was in the long-term interest of all and, I dug in and stood my ground. The strike broke on January 9, 2001, on the management's terms. The impact of this de termined effort was that the country was now recognised as a secure cli mate for investment, the company was acknowledged as one that did not com promise on quality and paved the way for the government to privatise the company and list it on the stock exchanges.

While it was a painful episode critical decisions have to take cognisance of the interests of the society as a whole.

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