Maruti Locks Workers Out of Riot-Damaged Plant

Maruti Suzuki India Ltd. has suspended production at its assembly plant in Manesar until the completion of an investigation by Haryana state authorities into the death of a manager there last Wednesday.

The company says it has no idea how long that might take. Maruti asserts its salaried employees fear for their lives if union members were allowed to report for work. The company claims rampaging workers ransacked and burned administrative and security offices but did not damage production areas.

The factory has capacity of 1,700 vehicles per day, or about 40% of the company's total. Analysts tell the Financial Times that Maruti will lose about $15 million each day the Manesar facility is idle. The company does not expect to be able to replace all of its lost output by increasing production at other plants.

Chairman R.C. Bhargava tells reporters that the company doesn't plan to relocate production from the New Delhi-area factory. He says an assembly facility in about 12 miles away in Gurgaon is operating at full capacity.

Police have arrested more than 90 workers and say they will charge all 3,000 union members at the factory with murder and attempted murder. Maruti alleges the manager who died was trapped in a fire set by workers after his arms and legs were broken. At least 70 other managers were injured, according to police. More than 20 reportedly remain hospitalized.