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Maruti Suzuki shuts Manesar plant, shares down 9%

Co's General Manager Awanish Kumar charred to death in the violence at the plant on Wednesday night
 Maruti Suzuki shuts Manesar plant, shares down 9%

Automobile maker Maruti Suzuki India Ltd Friday said the production at its Manesar plant remained suspended on Thursday on account of labour unrest, said news reports, citing EI Mochizuki, spokesperson for Maruti Suzuki’s parent. He also said there was no clarity as to when the work will restart. He also stated that there was no damage to the factory’s production line or its facilities and only to the offices at the plant.

Maruti Suzuki’s General Manager Human Resources , Mr. Awanish Kumar Dev was charred to death in the violence at the Maruti Suzuki plant at Manesar on Wednesday night. In the violence, nearly 90 were injured, allegedly triggered by workers over the suspension of an employee. Mr. Kumar’s body was identified by his family.

The company asserted that the violence was a planned act of mob, which has implications beyond one country or region. The shares of Maruti Suzuki slipped 9% on Thursday post violence at its Manesar plant stalled production. Manesar plant will remain closed today after it being shut on Wednesday.

Manesar plant can make 550,000 vehicles a year and accounts for around a third of Maruti’s total output. An official at Maruti said, “We have lost Awanish Kumar Dev, GM (HR) at Manesar plant, who was burnt to death by the mob. We are still assessing the total damage to the property and facilities from the acts of arson. The office facilities have been burnt beyond repair.” The official also stated, “Such acts of violence-preplanned, unprovoked and gruesome- have implications beyond one company or region.”

The police was looking for 3,000 people they want to arrest after one person was killed and scored injured in the riot. Hundreds of police have already secured the Maruti Suzuki factory in Manesar and arrested 88 people after the property was smashed and parts of the factory set on fire during the violence on Wednesday.

The Maruti Suzuki Workers’ Union blamed the management of calling in hundreds of bouncers on its payroll to attack the workers. The union, said it was ready for a dialogue with the management of the company. Special investigation team headed by assistant commissioner of police Ravinder Tomar has been constituted to probe Wednesday’s violence and labour unrest. MSWU President Ram Meher accused the company of anti-worker and anti-union activities. The union is very keen to have a word with the company and government officials to resolve the dispute.

Maruti Suzuki India is the arm of Japanese car company Suzuki Motor Corporation. The company offers a complete range of cars from entry level Maruti 800 and Alto, to hatchback Ritz, A-Star, Swift, Wagon-R, Estillo and sedans DZire.

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