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Maruti employees threaten strike

The employees union of Maruti Udyog Limited, or MUL, the country's largest car maker, today urged the government against divesting stake in the company and threatened to strike work if government holding was reduced below the existing 50 per cent.

Representatives of the union -- Maruti Udyog Employees Union, or MUEU, -- called on Minister for Heavy Industries Manohar Joshi and urged him to prevent dilution of government holding in MUL.

MUEU general secretary Mathew Abraham said that the union has decided to protest every move to reduce government holding below the existing 50 per cent. "If the government and the cabinet decides to go ahead with divestment in Maruti, we will organise protest demonstrations and even strike work,'' he added.

Divestment of Maruti, he said, would create a private sector monopoly and would harm consumer interest. ''Divestment in MUL would destabilise industrial relations in Maruti.''

In a letter to Joshi, the union, representing 4,800 workers, stated that the company has been recording profits in the past.

''The profits will increase in the coming years as 60 per cent of the investment made by the company has already been depreciated. Besides, the company shall overcome competition in the coming two years by successfully marginalising other players in the industry.''

''The current slowdown in sales in just a bad spell and we will overcome this soon," Abraham said.

"The government, which invested 74 per cent and took 100 per cent risk of the total investment in building up the company at the initial stage, is losing it for no reason. Government has already sold off its 24 per cent holding to Suzuki on the net value in 1987 and 1992, and later also handed over day-to-day management control to the Japanese partner. Divestment of further stake in the company would not be in the interest of the company and consumers," he added.

UNI

Business