The country’s auto industry is going through a bad phase. In the midst of the slowdown in the auto industry, more than 3000 temporary employees of Maruti Suzuki India have lost their jobs. This is not the first time the layoffs have been reported in Maruti Suzuki. Earlier too, the news of the loss of 1000 temporary employees of Maruti Suzuki had made headlines.
Meanwhile, Ashok Leyland has also offered employees to leave the company. Let us know that due to the huge decline in production and sales, more than 2 lakh jobs have been lost in the auto sector since April.
According to news agency PTI, Maruti Suzuki chairman RC Bhargava said that the contract of temporary employees has not been extended in view of the slowdown in the auto industry. However, it has not affected the permanent employees. Bhargava said, “This is part of the business, when demand increases, more employees are recruited on contract and when the demand decreases, their number is reduced.”
Bhargava also said that the jobs of about 3000 temporary employees associated with Maruti Suzuki have gone away. Bhargava reiterated that the auto sector creates jobs related to sales, service, insurance, licenses, petrol pumps, transportation in the economy. He cautioned that a slight drop in sales would affect jobs in a big way.
Meanwhile, Ashok Leyland, another major company in the auto industry, has announced plans to exit the company for executive level employees. Under this, the company has issued voluntary retirement scheme (VRS) and employee separation scheme (ESS) by issuing notice to employees. The company has introduced this scheme at a time when its employees are on strike to increase the bonus.
Auto Industry in Crisis
The auto industry is constantly going through bad times. The past 9 months have seen a decline in production and sales of vehicles. Passenger vehicle sales in July were down by 30.98 percent. A total of 2 lakh 790 vehicles were sold in July 2019. In July 2018, this figure was on 2 lakh 90 thousand 931 vehicles. Similarly, domestic sales of motorcycles stood at 9,33,996 units last month. This is 18.88 percent less than a year ago. In these conditions, Siam, the organization of the auto sector, has also sought help from the government.