August 29, 2011

Maruti Suzuki India Ltd. has temporarily halted production at one of its two factories due to problems with workers, a spokesman for the country's largest car maker by sales said Monday.

This is the third production stoppage in three months at the factory at Manesar in the northern state of Haryana. Maruti stopped output for 10 working days at the factory in June due to a strike by workers demanding recognition of a new union and reinstatement of some sacked colleagues. And in July, Maruti stopped production for a day at the same plant due to a strike by some workers.

The Maruti spokesman, who didn't wish to be named, said that the company has asked about 1,600 workers at the Manesar plant to sign a so-called good conduct bond before they can enter the factory premises.

The auto maker has suspended 10 workers and dismissed another five at the Manesar plant for "sabotaging the production and deliberately causing quality problems in the vehicles produced at the plant last week," the spokesman said.

The local unit of Suzuki Motor Corp. produces the Swift and A-Star hatchbacks, and the SX4 sedan at the Manesar plant. Maruti has another factory at Gurgaon, also in Haryana.

Source: The Wall Street Journal

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