Maruti Suzuki lockout may hit vendors’ contract workers

India’s largest carmaker, Maruti Suzuki lockout at the Manesar plant is not just affected labour reduction that lead to their unrest, even the work of contract labourers those are working in factories of component suppliers to Maruti are also affected.

“If there is prolonged lockout at Maruti’s Manesar plant, there is no doubt that there would be lay-offs of contract workers in the ancillaries,” a senior official said, as per source.

Due to having worse outcome results for the June quarter on Saturday as fourth consecutive fall, at Maruti Suzuki India Ltd.‘s profits downed by 22.8% from the year-ago period to Rs. 423.8 crore.

As per source, the Company’s decision to complete shutdown at Manesar to cover its profits further is unfortunate and come at a time when the automobile market is struggling with sluggish demand.

Maruti Suzuki’s decision to an indefinite lockout at the Manesar plant had declared on July 21 following clashes in which one senior executive was killed and more than 100 others injured, which is the major reason of it.

Another reason behind this is company’s shift of its assembly line of Swift and D’zire at its Gurgaon plant and after that supply of components continued from Manesar plant which affecting production of high-end models.

However, worse situation is going to be bad and as soon as labour unrest is not resolved, Maruti may face decline of consumer demand leading to shift in brand loyalty at time of festive season.

Lockout at the Gurgaon-Manesar plant resulted backdrop of an overall market slowdown as well as drop in sales of MSI’s small car Alto.

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