Friday, July 29, 2011

Work Resumes at Maruti Suzuki Plant After Brief Strike

NEW DELHI – Maruti Suzuki India Ltd. said Thursday it resumed production at one of its factories after a temporary strike by workers protesting about the suspension of some of their colleagues.

"A handful of workers had struck work but normal production resumed within an hour," a Maruti spokesman said.

He said the workers at Maruti's Manesar plant in northern India's Haryana state were protesting about the suspension of four other employees who had manhandled a supervisor Wednesday evening. "A disciplinary committee took action against them and suspended them today [Thursday] morning."

This is the second time in two months that Maruti, the country's largest car maker by sales, had to halt production due to labor unrest at the Manesar factory. The company stopped production for 10 days there in June after nearly 2,000 workers went on a strike to demand recognition of a new union and the reinstatement of 11 colleagues who were sacked for indiscipline.

Shares of Maruti fell as much as 2.4% after news of the strike. They later recovered to close 1.7% down at 1,186.45 rupees ($26.92) on the Bombay Stock Exchange. The benchmark index closed 1.2% lower.

The Maruti spokesman said the loss of car production from Thursday's strike is marginal and will be recovered Friday.

The local unit of Suzuki Motor Corp. makes the Swift and A-Star hatchbacks, and the SX4 and Swift Dzire sedans at the Manesar plant. Diesel models, which already have a waiting period of a few months due to high demand, are produced at Manesar. Maruti has another factory in Gurgaon, which is also in Haryana state.


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