Manesar plant to resume production from August 21 under heavy
security cover
In a press conference today, Maruti announced that it will resume
production at its Manesar plant from August 21 under heavy security
cover. With this resumption, the shutdown will have lasted for around 1
month – broadly in-line with what we were building into our numbers. As
per an investigation conducted by the company, they will fire 500 regular
workers who were involved in the misconduct on 18 July. Further, the
company will no longer employ contract workers on the production line;
however, MSIL will keep 20% of the total workforce on short-term
agreements. According to today’s announcement, current contract
workers (1,869 employees) will be given an opportunity to join the
company as regular (ie, permanent/non-contract) workers provided they
meet the company requirements.