Good conduct bonds are legal, says Maruti

Maruti Suzuki India Ltd (MSIL) on Thursday quashed allegations that demanding a good conduct bond from workers was an unfair labour practice even as it remained evasive on details of the severance packages doled out to the 30 workers who resigned from the company last month. The Government had on Tuesday rapped Maruti for making workers sign the good conduct bond in August before they were allowed to enter the factory.

The bond became a key issue between the workers and the management and led to a near 3 month long labour strike at the factory.

"The good conduct bonds are strictly in compliance with the standing orders of the company, which has been certified by the Haryana government," said R C Bhargava, chairman, MSIL. "We have followed exactly what it stipulated and I am not sure why it is unfair, how something which is legally certified becomes an unfair practice."

Workers had been demanding formation of an independent union at the factory and Maruti had alleged that workers deliberately delayed production and tampered with the equipment before insisting on the bond.