Maruti Suzuki cuts temporary jobs as sales plunge

Agencies
August 3, 2019

New Delhi, Aug 3: India’s biggest automaker, Maruti Suzuki India Ltd, said it had cut the number of its temporary workers to cope with a slowdown in auto sales, adding to the jobless problem in Asia’s third largest economy.

The vehicle industry, accounting for nearly half of India’s manufacturing output, is facing one of its worst slowdowns in nearly a decade, with vehicle sales falling rapidly. There is little sign of a swift revival.

Maruti Suzuki said in an email sent to Reuters it employed 18,845 temporary workers on average in the six months ended June 30, down 6 per cent or 1,181 from the same period last year. The company also said job cuts had accelerated since April.

Two sources familiar with the matter said the company would freeze hiring new employees until the downturn reversed.

It is the first time the reduction has been reported. The listed firm is not required to disclose any reduction in its temporary workforce.

India’s jobless rate rose to 7.51 per cent in July 2019 from 5.66 per cent a year earlier, according to private data group CMIE. Those figures do not include many people on the margins of society who are day labourers and are often unemployed or underemployed.

Economists say government jobless figures are out of date and lack credibility.

Maruti Suzuki, majority-owned by Japan’s Suzuki Motor Corp, said it had not reduced its 15,892-strong more permanent workforce. It declined to say whether further reductions were planned or comment on the hiring freeze.

The automaker previously said it had cut production by 10.3 per cent in the first six months of the year.

Maruti Suzuki, which produces every second passenger vehicle sold in India, reported a 33.5% decline in sales in July to 109,265 vehicles compared with July 2018.

Chairman R C Bhargava told Reuters the workforce was being reduced to reflect the slowdown in business, adding that this was one reason carmakers liked to have some temporary workers, although he did not give details about the job losses.

“One of the consequences of a slowdown is that the marginal players and weaker players find it difficult to survive. When do consolidations happen in business? Only when times are difficult,” he added.

Two temporary workers outside the Manesar plant in the northern Indian state of Haryana, who did not want to be named, said the number of days with three shifts had been reduce. They said some assembly lines at the plant were not operating.
Kuldeep Janghu, general secretary of the Maruti Udyog workers union, said the average wage of temporary workers were about USD 250 a month at the company’s Manesar and Gurugram plants.

The two plants have combined capacity to produce more than 1.5 million vehicles a year.

The company rolled out its popular Maruti 800 model from the Gurugram plant in 1983.

The auto sales downturn has put jobs across the industry at risk. The Automotive Component Manufacturers Association of India (ACMA) said parts makers could slash a fifth of their 5 million workforce if the slump continued.

Comments

Poor India
 - 
Sunday, 4 Aug 2019

Good going india

 

This is the lesson for our saffron brother who Vote based on religion..

 

when you have empty pocket you will learn the best lesson of your life.

 

you given power to marons and they make money and live happly with there family

 

what about you in 2020

 

you lost everything!!!

 

muslim dont worry we have money fro GULF....

 

haha

hahaha

hahha this is our laughfing time!!!!

 

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
February 3,2020

Bengaluru, Feb 3: India's manufacturing activity expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, a private survey showed on Monday, suggesting the economy may be getting back on firmer footing.

In response to the jump in sales, factories hired new workers at the fastest rate in more than seven years.

If sustained, the improvement in business conditions could point to a gradual economic recovery in coming months, as forecast by analysts in a Reuters poll last month, after growth slowed to a more than six-year low in the July-September quarter.

The Nikkei Manufacturing Purchasing Managers' Index , compiled by IHS Markit, jumped to 55.3 last month from 52.7 in December. It was the highest reading since February 2012 and above the 50-mark separating growth from contraction for the 30th straight month.

"The PMI results show that a notable rebound in demand boosted growth of sales, input buying, production and employment as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business," Pollyanna De Lima, principal economist at IHS Markit, said in a news release.

A new orders sub-index that tracks overall demand hit its highest level since December 2014 and output grew at its fastest pace in over seven and a half years, pushing manufacturers to hire at the strongest rate since August 2012.

Meanwhile, both input costs and output prices rose at a slower pace, indicating overall inflation may have eased after hitting a more than five year high of 7.35% in December, although probably not below the Reserve Bank of India's medium-term target of 4%.

That might keep the central bank, which cut its key interest rate by a cumulative 135 basis points last year, on the sidelines over the coming months.

"To complete the good news, there was also an uptick in business confidence as survey participants expect buoyant demand, new client wins, advertising and product diversification to boost output in the year ahead," added De Lima.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 11,2020

New Delhi, Jun 11: The death toll due to COVID-19 rose to 8,102 and the number of cases climbed to 2,86,579 in the country after it registered the highest single-day spike of 357 fatalities and 9,996 cases till Thursday 8 AM, according to the Union Health Ministry data.

The number of recoveries remained more than the active novel coronavirus cases for the second consecutive day.

The number of active cases stands at 1,37,448 while 1,41,028 people have recovered and one patient has migrated to another country, as per the data.   

"Thus, around 49.21 per cent patients have recovered so far," an official said.

The total number of confirmed cases include foreigners.

Of the 357 new deaths reported till Thursday morning, 149 were in Maharashtra, 79 in Delhi, 34 in Gujarat, 20 in Uttar Pradesh, 19 in Tamil Nadu, 17 in West Bengal, eight in Telangana, seven each in Madhya Pradesh and Haryana, four in Rajasthan, three each in Jammu and Kashmir and Karnataka, two each in Kerala and Uttarakhand, one each in Andhra Pradesh, Bihar and Himachal Pradesh.

Out of the total 8,102 fatalities, Maharashtra tops the tally with 3,438 deaths followed by Gujarat with 1,347 deaths, Delhi with 984, Madhya Pradesh with 427, West Bengal with 432, Tamil Nadu with 326, Uttar Pradesh with 321, Rajasthan with 259 and Telangana with 156 deaths.

The death toll reached 78 in Andhra Pradesh, 69 in Karnataka and 55 in Punjab. Jammu and Kashmir has reported 51 fatalities due to the coronavirus disease, while 52 deaths have been reported from Haryana, 33 from Bihar, 18 from Kerala, 15 from Uttarakhand, nine from Odisha and eight from Jharkhand.

Chhattisgarh and Himachal Pradesh have registered six COVID-19 fatalities each, Chandigarh has five while Assam has recorded four deaths so far. Meghalaya, Tripura and Ladakh have reported one COVID-19 fatality each, according to the ministry's data.

More than 70 per cent of the deaths are due to comorbidities, the ministry's website stated.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
July 9,2020

New Delhi, Jul 9: India reported the highest single-day spike of 24,879 new positive cases and 487 deaths in the last 24 hours, taking the total number of COVID-19 cases in the country to 7,67,296, according to the Union Ministry of Health and Family Welfare.

Out of the total number of cases, 2,69,789 are active, 4,76,378 have been cured/discharged/migrated and 21,129 have died.

Maharashtra remains the worst-affected state due to COVID-19 with as many as 2,23,724 cases, including 91,084 active, 1,23,192 cured/discharged and 9,448 deaths.

It is followed by Tamil Nadu (1,22,350) and Delhi (1,04,864).

Meanwhile, a total of 1,07,40,832 samples have been tested for COVID-19 till July 8. Of these, 2,67,061 samples were tested yesterday, stated Indian Council of Medical Research (ICMR).

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.