India’s Maruti Suzuki to resume production on Sunday

MUMBAI, Sept 16 (Reuters) – Maruti Suzuki , India’s largest car maker, will resume production on Sunday, the company said, after strikes ended at a key supplier but looked likely to continue at its Manesar factory wracked by labour unrest.

The automaker, 54.2-percent owned by Japan’s Suzuki , had ceased production at its two plants on Friday after a 19-day stand-off with workers at its Manesar factory sparked a support strike at Suzuki Powertrain Ltd, which produces engines for the company.

Production at Maruti’s Manesar factory, where it makes its popular Swift model, has been severely hit since workers walked out on Aug. 29 after the firm demanded they sign a discipline agreement, claiming some had engaged in sabotage.

Meanwhile the company has hired hundreds of replacement workers in a move that has allowed it to produce half of its usual daily capacity of about 1,000.

“The management will not take back those dismissed or suspended for indiscipline, sabotage and for deliberately causing quality problems in cars,” the company said in the statement.

The unrest at Manesar, comes as India’s car industry grapples with slowing demand on high interest rates and rising costs.
http://www.reuters.com/article/2011/09/16/maruti-strike-idUSL3E7KG22720110916

 

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