New Delhi: Maruti Suzuki will lift the month-long lockout at its violence-hit Manesar plant from August 21 and has served termination notices on 500 regular workers.
The company is also said to be planning to remove 500 contract workers over their alleged involvement in the violence on July 18 in which a General Manager (HR) was killed and nearly 100 others were injured.

Maruti violence: Accused sent to custody
Plans for Manesar plant may be announced

"About 300 workers will start work on Tuesday (August 21) and when we start, we would be producing about 150 cars per day," Maruti Suzuki India (MSI)Chairman R C Bhargava told reporters here on Thursday.

He said MSI will gradually ramp up production but did not provide a timeline for reaching full output at the plant that has an annual capacity of 5.5 lakh units. Before the incident the plant had employees strength of 3,300 of which 1,528 are permanent.


The production which was suspended on July 21, will restart with two popular models -- DZiRE and Swift, he added.
The overall loss is estimated to be over Rs 1,500 crore.
Production will resume under heavy security with Haryana Police providing 500 personnel. Besides, MSI will have its own 100 personnel apart from 40 personal security officers.
"We wanted to ensure that work can be carried out within the factory and also provide security to workers while returning home," Bhargava said.
On the fate of the workers allegedly involved in the violence, Bhargava said: "We have already issued notices to 500 permanent workers at the plant. The number may increase depending upon the investigation and if there is a need to issue more notices, we will."
Besides, 500 contract workers have been identified for their alleged involvement in violence and would not be taken back during new hiring to start on September 2, sources said.

MSI Chief Operating Officer (Administration) S Y Siddiqui said: "The investigation is an ongoing process and we cannot put a number on the contract workers that we will not take back."
He further said it was estimated that 700-800 workers were involved in the violence on July 18.


On total production loss, Bhargava said: "Production at Manesar varies from 1,500 units to 1,700 units per day depending on the demand."
Talking about compensation offered to employees who were issued the notices, Siddiqui said they will be given three months salary in lieu of the notice period and "15 days of salary for every year of completed service".
On future employment of contract workers, Bhargava said: "On the production line, we would not have contract labourers, but for the short-term and for flexibility, we may have about 20 per cent contract labourers, but they will be absorbed in due course of time."
He said the company will start fresh recruitment of permanent workers from September 2 and existing contract workers will also be considered.
"Those who are fit for employment, will be taken and those who we think we cannot employ (because of involvement in the violence), we will not take them back," he said.
In order to have a strong security mechanism, MSI has created a "special force of 100 security guards, including ex-servicemen, at its Manesar plant in addition to the existing security force, to enhance security".
This will be in addition to the state police, who will continue to provide security to the plant.
On the losses, Bhargava said the damage to the plant machineries and other properties is estimated at Rs 110 crore.
Besides, the production loss is about Rs 1,400 crore.
"The average value per car, depending on the product mix, stands between Rs 3.5 lakh to Rs 4 lakh," he said without sharing the actual production loss in the month-long lockout that caused a total production loss of over 20 days.


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