"Maruti's Manesar plant GM(HR) burned to death, 91 workers arrested"
"Violence at Maruti Suzuki's Manesar plant: Workers used shock absorbers to damage cars"
"Maruti Suzuki’s Manesar plant violence: Time to bring trade union leaders of under graft law"
Here was one headline I found
hard to ignore. It caught my eye thanks to two reasons. First, I love this
sector. If you have visited this blog before, you would notice that most of my
thought process has been limited to automobiles, roads and such things. Second,
I have seen this industry real close thanks to my father. He has been in this
sector even before I realized that my thumb had functionalities other than
satiating my toothless mouth.
So it really saddened me to
read of the demise of a HR manager and that too in such a manner. The other
managers were robbed off their dignity when they were assaulted with automotive
parts, suspension rods and what not.
What just happened here? Was
it a management failure or a natural outcome of the suppressed class that had
been wronged all these years? Or is it an act of by socialist propogadists
enticing people or worse: was it the the reds? Or had the Nazis resurfaced
after all these years from their hiding?
To make a fair start, and
more importantly to ensure that I am not assassinated by the radicals, let us
admit that Suzuki does not come out 100% clean. I have seen the way my father
deals with labor issues. At times I've complained that he's being too slow or
not acted fully in the guise of being 'careful'. At times I even wonder why
trivial issues are brought to his office. But now I see the difference. Our
countrymen at leadership positions do understand the dynamics of our country.
India is a case of wrong people empowered, politically connected and a legal
system which contrary to the public opinion is biased to the supposedly weak
and oppressed. The Japanese on the other hand regard employees as individuals
who are paid to do their jobs: period. If there's any problem with your job,
expect consequences. Which is fair but then this attempt to confront the
traditional Indian way of things may not go down very well. Also there's an
article from a friend in economic times showing the wage percentage (of total
cost) increase graph of suzuki lagging behind that of Hero Honda.
Having said that, nothing
justifies what happened. Inspite of all its aggressive and to the point
management style, I'd still give Suzuki a clan chit. So who is to blame??
The way I see it:
1. The People
2. Real Estate bubble
3. Political games
1. The People
First the people. Let's start
with their demands. Check out this article. Even if the numbers here are
exaggerated, let us accept the fact that the workers want a salary increase beyond
20 k a month. Let's get some clarity by putting things into perspective. 20k is
the amount that an average software engineer makes when he\she has graduated
and just joined. He\she might just have an education loan and would be posted
in a city that boasts of a higher cost of living (Bangalore is more expensive than
Manesar or Bhiwadi for sure). 20k or less is what an engineer makes in a decent
production firm. I wonder where the blue collar gets the idea of such demands.
One fact I can present to you is that the worker body has learnt to read the
balance sheets. Though they are more informed, the mentality is yet to evolve.
I heard a manager in my dad's circles who was telling me how hard it was to
shake the workers of their socialist mentality. According to them, the entire
profit was rightfully theirs and ought to be distributed to them without any
delay. Investments, maintaining a cash pile and any form of reserve and surplus
accounts are all bull for these guys.
2. Real Estate bubble
The second factor I would
like to bring forward is the real estate bubble. Though the impact is not
direct, its impact is quite significant in the long run.
The population in this region
has seen many amongst their own become rich overnight. Those labor intensive
fields have been handed over to builders for truck loads of cash, flashy houses
and SUV's. The consumption pattern has changed drastically. The workers
residing here are dissatified seeing their kin, their neighbors moving up in
life. Hence, they feel money has got quicker and their employers are depriving
them of the above mentioned lifestyle. Why, my mother's driver is unhappy with
his phone and his vehicle. As a matter of fact, upon inquiring I found out that
the phone and motorcycle on his wishlist are the same or beyond my wishlist.
3. Political games
As we are clear about the
rising desires, we need just a match to set a firestorm. And that spark was
provided by the political clergy. Of the little I have conversed with union
leaders: be it directly or indirectly, one thing is crystal clear. They are
politically connected. Imagine an average worker who has a family waiting at home,
who has moved up in life compared to his fellow village-folk after completing
basic education and managing to get a job in a company everyone back at home
loves to talk about. Now imagine the same fellow trying to instigate violence
knowing very well of the consequences. Nope. Not happening. A person who would
charge would be someone who knows that come what may, there's someone backing
him (his backer did abandon him later, but he did not know this earlier).
Politics is everywhere: in parliaments, in corporate offices and even in houses.
However, the cronies chosen by our political class are the ones who are
notorious enough to be carry out their deeds. These cronies are the most
dangerous lot. They have fewer brain cells than you would find in a mosquito
and they are stupidly reckless. Try stopping a lane jumper at the gurgaon toll
plaza. 'Jaanta nahi main kaun hoon? Yeh XYZ MLA ki gaadi hai.'
Though I have little proof, by
virtue of my vicinity to this sector- I have no doubt that it is creatures of
this kind who started this. I've seen this plenty of such creatures to be talked
out of my judgement.
Having said that, I still
blame the rest of the workers for blindly following these idiots and not
standing up against a few.
My suggestion to Suzuki:
Please uphold your decision
to suspend the entire lot. Sometimes, it is fair to give a jolt to ensure that
people wake up to reality.
More importantly, if it does
not have enormous financial or strategic implications, stop investing in
Haryana. Start disinvestment if possible. You do not have to be nice enough to
care about a state after all this.
Sure, if you guys still think
Suzuki is evil: you are welcome to join my new soon to be founded car company.
To cater to the price sensitive Indian market, I will build cars from mud
houses and scrap metal. To motivate people to work better 20 hours a day (and
keeping costs low at the same time), I would use whips, boiling oil and the
oriental torture techniques.
So the choice is with you
people: embrace the MNCs or come work with me or worse: with those crony
capitalists.