Osamu Suzuki says Maruti Suzuki does not intend to put an end to the contractworker system at its car plants

Maruti Suzuki does not intend to put an end to the contractworker system at its car plants in India, Suzuki Motor Corp (SMC) chairman Osamu Suzuki said in an exclusive interview. At its Manesar plant, where an human resources executive was brutally killed and several other employees injured on July 18, there were about 1,800 contract workers in addition to 1,900 regular employees and 200 trainees, Suzuki said.

In Japan, contract workers comprise 30 to 35 per cent of its workforce, and Maruti Suzuki will try and move that ratio from the current 50:50, he said. But Suzuki, who met Haryana chief minister (CM) Bhupinder Singh Hooda during his India visit, made clear that he is surprised that authorities have not got to the "root cause" of the violent worker uprising.

"This incident happened on July 18th; today is August 29th. More than one month has passed. Many people have been arrested but I cannot believe that the reason for the incident is not yet clear."

Suzuki further said that he met 93 of the 96 employees hurt in the violence; the other three had their legs broken by the rioters. Taking a tough stand on the people involved in the violence, he said, "As far as the criminals are concerned, they will be caught and prosecuted and they will lose their jobs; so, they won't be getting any benefit from this."

Maruti Suzuki will change the way it hires contract workers, Suzuki further added. In Japan, "we have all the history and antecedents of employees like their educational qualifications, career history, home address and names … we are also checking their police or criminal histories.

But here, whoever contractors bring has been working without any conditions. So, I think, we would strictly implement these systems and Maruti Suzuki will also do the supervision." HAS the violence at Manesar changed his view about investing in India? "There is no change in my thinking. It has been 30 years since we established Maruti Suzuki .... I consider India my second home. Mrs Indira Gandhi was interested in manufacturing small cars; at that time, our views matched. Maruti is part of the Suzuki family."

Was he shocked by what had happened? "I think the way the (Maruti) union has taken up its dispute with the management is not at all correct. I don't consider this a union-management labour issue; I term it as a criminal act, and, of course, it shocked me," Suzuki said.

"From 1945, when Japan lost in World War Two, till 1960, we also had labour troubles So, I have also experienced labour problems (in Japan).... I don't think there was any problem or confrontation between Maruti Suzuki and the labour union." Suzuki went into meticulous detail about market share, product lines and worker numbers.

At one point, he asked Maruti Suzuki managing director and chief executive officer Shinzo Nakanishi for a sheet of paper so he could write down details and draw diagrams. Suzuki Motor had plants in several countries. Was India one of the most difficult to work in? Suzuki gave his first answer in English. "No comment," he said and laughed.