Maruti in talks with workers as strike halts production

Maruti Suzuki said on Monday its management was in talks with workers at its plant in Manesar where a strike has disrupted production.

Production at the Manesar plant, which produces about 1,200 vehicles a day, has been halted after a section of workers went on strike on Saturday, said a spokesperson for Maruti.

Around 800 workers went on strike demanding the recognition of a new union -- Maruti Suzuki Employees Union, the spokesperson said.

"We are still trying to understand what their grievance is... We've had no discussions with them on this subject ever," RC Bhargava, chairman of Maruti Suzuki told television channel NDTV Profit.

Bhargava said the management was in talks with the workers to find a solution, but did not give a timeline as to when the strike was expected to be called off.

At present, the company, 54.2 per cent owned by Japan's Suzuki Motor Corp, has one workers' union that is recognised by the management -- Maruti Udyog Kamgar Union.

"It's more surprising that one month ahead of the elections this kind of thing should happen," Bhargava said, referring to the existing union's elections to be held next month.

Last year, Maruti managing director Shinzo Nakanishi said the company was looking to advance its capacity expansion plans to meet booming demand in the fast-growing south Asian country.

The company plans to invest $1.3 billion over the next three years on manufacturing plants to boost capacity. In September 2010, the company said it would build a fourth auto plant in India to lift output to 1.4 million units a year.

Shares of Maruti provisionally ended 0.2 per cent lower at Rs1,231.10, after falling as much as 1.9 per cent in the day in a firm Mumbai market.

Maruti Suzuki strike disrupts production; shares fall