Maintaining good Industrial Relations is definitely a cake walk would be the quite obvious

words which one would get to hear from an IR Manager at the Volvo Eicher plant at Faridabad.
On the contrarary the IR Manager of the Maruti Suzuki plant at Manesar would have quite a
different story to share.
The practices in Volvo Eicher and Maruti if compared would share quite a diametrically
opposite relationship. The practices at the Volvo Eicher plant at Faridabad can definitely be
compared with that of a Standard Hydrogen Electrode and be set as a Benchmark for healthy
industrial relations.
Maintaining good industrial relations is more of an art rather than science. It is more about
establishing a strong bond of trust and faith amongst the employees, workmen and the
management. It is more about treating one and all with equity while ensuring that their dignity
is not hurt.
It was this trust, feeling of oneness and a sense of belonging which ensured smooth running of
the Eicher Volvo plant at Faridabad. Such was the sense of belongingness and ownership that
the workers at the Volvo Eicher plant saved their plant from getting damaged by the external
union of workmen.
As it is said that Rome was not built in a day; the strong sense of belongingness amongst the
workers at the Volvo Eicher plant was also not built in a days time. Whereas on the other hand,
the Maruti Suzuki plant at Manesar shares a different story. The workers at the Maruti plant
were not happy with the working conditions. The plant was built with the aim of cost
effectiveness and increased productivity. The Japanese management exercised close control
The Japanese exercised close control over the day to day activities of the Manesar plant
Compared to Gurgaon, younger worker and supervisor population at Manesar to cut costs
(diploma holders with 1 yr experience supervising Associates with 3-4 yrs experience; similar
age group )
No shared culture at Manesar as existed in Gurgaon- extreme work focus vs. people focus
High percentage of contract Associates
Facilities for Associates in the plant not up to the mark- rest rooms, work areas etc. Family
related issues were ignored like housing, transport etc.
All hot selling models of cars moved to Manesar causing pressure on volumes and operations
Extreme focus of Japanese management on target achievement (due to high demand) leading
to pressure on Associates
Incentive as a % of total salary lower in Manesar compared to Gurgaon
Reward for attendance under PPRS ( Profit, Performance and Reward Scheme) misconstrued
by Associates as salary
Mediclaim policies not employee friendly: dependent parents to stay with employee, only
specific hospitals and clinics covered under the scheme etc.