Maruti staff union opposes sell-off plan
By The Hindu Bureau, Business Line, Monday 20 November 2000, 12:00 AM
NEW DELHI, Nov. 19. THE Maruti Udyog Employees' Union today vehemently opposed the Government's plan to disinvest its equity in the country's premier passenger car manufacturer, Maruti Udyog Ltd.
Talking to Business Line, Mr Mathew Abraham, General Secretary, said disinvestment will dramatically alter the position of the company's employees. He pointed out that so far the company has had the protection of the Government and its human resources policies.
Mr Abraham also said that unlike the necessity for the Government to disinvest in the other public sector undertakings, in Maruti it already has a strategic partner in Suzuki Motor Corporation of Japan. The union also warned that if a monopoly like MUL is handed over to private parties, it could lead to misuse. MUL enjoys a market-share of 55-60 per cent in the domestic passenger car segment.
Union officials pointed out that in spite of the Government's presence on the companies board, the relationship between the management and labour is currently strained.
The union plans to move the Delhi High Court seeking an injunction on the compulsory signing of the good conduct undertaking.