On September 22, 2008, a labour dispute turned ugly in a factory in Greater Noida, an industrial suburb east of New Delhi. The managing director/CEO of the plant, a subsidiary of Italian carmarker Graziano Transmissioni, was beaten to death by disgruntled former employees. Lalit Kishore Chaudhary, a father, was 44.
The conflict had been brewing for two months, following the layoff of some 100 employees. The reasons for the dismissals are unclear, but poor performance and the alleged ransacking of company offices by employees refused a pay raise have been cited.
Chaudhary had called a conciliation meeting with a few of the laid-off workers. Some one hundred others waiting outside the gates forced their way in, injured some forty people inside and killed Chaudhary.
Despite a retraction and an apology, controversy has exploded around the tragic incident as a result of comments made by Labour Minister Oscar Fernandes to Press Trust of India, in which he said the attack “should serve as a warning for management.” “Workers should be dealt with with compassion,” he told reporters. “The workers should not be pushed so hard.” Outraged by these statements, Indian employers are worried about the repercussions on foreign investment.