Honda Crises: Manesar Industrialists seek URGENT intervention of Haryana CM

NEW DELHI: The entrepreneurs of Industrial Model Township (IMT), Manesar – which is again in the news for the labor unrest in Honda’s 2-wheeler plant here, have drawn the attention of the Haryana chief minister to the dark history of this industrial belt.

In a strong-worded letter shot to Manohar Lal Khattar, their representative body – IMT Industrial Association has cautioned him against the possible repeat of the violent events that had attracted the attention of the whole world in 2005 (Honda Motorcycle & Scooter India) and 2012 (Maruti Suzuki) and brought India, and Haryana in specific, the unsolicited notoriety in the corporate world.

While referring to the contractual workers’ agitation since November 5 when the company management refused entry to 200 laid-off contractual workers following a slump in the production, the Association urged the CM to intervene in the matter and solve it unless it was too late.

Haunted by the specter of spreading workers unrest, the Association said that Honda union leaders were trying to influence the unions of other industrial units in this automotive belt.

It expressed apprehension that the situation could snowball into the uncontrollable level if the lethargic attitude of the local administration in addressing the issue continued to persist.

The Dark History:

Besides being the top industry hub of India with plants of multinational companies like Mauri Suzuki (MSIL), Honda (HMSI), Mitsubishi, Denso, Jaguar and Toshiba, Aadhaar National Data Centre and 170-acre Manesar Software Technology Park, the IMT Manesar has dark history too, stated the letter signed by Pawan Yadav, President, and Manoj Tyagi, General Secretary, IMT Industrial Association, Manesar.

Violent Incident at Manesar plant of HMSI in 2005:

In 2005, it was the same Honda’s two-wheeler unit in Manesar that had suffered losses to the tune of Rs. 100 crore in one month due to labor unrest, which had led to the production cut down by over 75 percent as workers’ union demanded higher wages commensurate with the company’s growth in the market, the Association stated.

The 2-wheeler production at the plant had plummeted from about 2,000 units a day to just about 250 units. As many as 250 workers shunned work and started protesting outside the plant, even threatening those who have resumed duty.

The agitating employees then started “misleading” others and “through their campaign of false promises and unwarranted pressure tactics”, caused a loss in production.

The workers had resorted hooliganism and fought pitched battles against police after which a bloody clash took place between them. The workers also set ablaze some vehicles, and Sub Divisional Magistrate had escaped a bid on his life by violent workers.

Violent Incident at the Manesar plant of Maruti Suzuki India Ltd in 2012:

In July 2012, Maruti’s Manesar plant had witnessed unprecedented workers violence as one HR general manager was charred to death after he was caught in the area of the plant caught which was set ablaze by agitating workers. The incident had rendered 100 others including two Japanese expatriates as well as police personnel injured.

The IMT Industrial Association said that the reasons behind this tragedy were the company’s worker union only.

“Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a monthly conveyance allowance of Rs. 10,000, a laundry allowance of Rs. 3,000, a gift with every new car launch, and a house for every worker who wants one or cheaper home loans for those who want to build their own houses.”

Armed with iron rods and door beams of cars, the mob spread out in groups in the factory area and targeted supervisors, managers and executives rendering many of their victims bleeding and unconscious. They also ransacked offices, broke glass panes … finally, they set the offices on fire.

Terming it a black day for the whole of the IMT Manesar, the Association said the incident had influenced the Maruti Suzuki plant in various ways – Operation stopped for a month, Losses estimated over Rs. 1500Cr, On top of all the lost market goodwill.

Yet again, Manesar goes through a similar crisis:

The association wrote in the letter to the CM Khattar that Honda’s two-wheeler unit at Manesar was in the trouble again, and because of the workers’ unions only.

In August, Honda had laid off about 700 contract workers because of a production cut. Company officials had said that the industry was facing a demand slump and the job losses were a consequence of the downturn.

“The contract workers have been protesting outside the plant at IMT-Manesar since November 5. The Management of Honda met with union leaders to sort out the worker’s issues but union leaders are demanding unreasonably. The union is also threating other workers who want to resume work. They are bullying and behaving like hoodlums. They are burning an effigy in front of the Honda Plant. Honda management is very insecure and looking for help from the administration. Instead of helping the Company, The administration is securing those union workers who are bullying and spreading dread among others,” the letter to the CM read.

The association lamented that the land belongs to the HSIIDC where the union is protesting without permission, and it indicated the lack of responsibility from the administration side.

Also read: Labour Unrest: HONDA suffers INR 350 Cr revenue loss; Govt loses INR 100 Cr as GST

“The Honda Company has already suffered a revenue loss of Rs. 350 Cr. Neither the administration nor the labor department has come to their rescue. This is also influencing other companies of Manesar as these union leaders are approaching other company workers to form an internal union, which will further lead to more conflicts.”

IMT Industrial Association cautioned the Haryana CM that the prolonged contractual workers’ agitation was earning India a bad reputation in the eyes of the potential investors and it would tell upon negatively on the FDI prospects of India.

“Investors across the globe are watching this crisis, which is creating a negative image of Haryana in the whole world and may lead to discontinuation of investors here. Investors are required in India but we are losing them now,” it said.

The Association said the on-going labor crises would be a huge embarrassment and set-back to the Haryana government’s flagship initiative “Happening Haryana” that boasted of providing infrastructural, industrial and socio-economic development in the state. But on global investors like Honda are facing serious problems and no one from administration is helping them, it claimed.

A possible clash anticipated on December 21:

People of the villages surrounding Manesar have come out in support of the HMSI management, and they have served a deadline of December 20 for the Gurugram administration to evict the agitating workers from the Manesar industrial area.

Failing which, the villagers have threatened to hold a meeting of about 100 villages on December 21 and throw the agitating workers out of Manesar.