settlement of industrial disputes with case study: Hero Honda
Causes of Industrial Disputes
Settlement of Industrial disputes
Case Study :Hero Honda
Any Dispute or disagreement between employer and workers, employer
and employers ,worker and workers which is relating to employment in
the industry such as wages, Dearness allowances, promotion , discipline,
bonus and other social securities benefits .
Industrial disputes in industries should be reduced to minimum So that
there is no work stoppage.
Settlement of disputes between
1- Employer – Workman
2- Employer - Employer
3- Workman - Workman
What is Industrial Disputes Exactly ?
(A) Industrial Factors
(B) Managements Attitude towards workers
(C) Other Causes
Causes of Industrial disputes
Industrial Factors :-An industrial matter relating to employment, work,
wages, hours of work, privileges, the rights and obligations of employees
An industrial matter in which both the parties are directly and
Disputes arising out of unemployment, inflation.
Management Attitude Towards Labour :
(i) Management ‘s unwillingness to talk over any dispute with their employees.
(ii) Managements unwillingness to recognize a particular trade union , delegating
enough authority to the representatives etc.
(iii) unwillingness to negotiation and settlement of disputes.
(iv) Managements unwillingness to provide services and benefits to its employee's
(i)Affiliation of the trade unions with a political party, where the latter may instigate
the trade unions to conduct strikes, lockouts etc.
(ii) Political instability, center- state relations, sometimes result into industrial
Settlement of industrial disputes
Adjudication :- when the parties are not
Resolving disputes so both the party
Approaches to govt. appoint the
judge for the settlement of industrial disputes so govt.
Has Three sectors 1.labour court 2.National Tribunal
Hero Honda Motors Limited .
Joint Venture 1983 :- The Hero Group of India and Honda of Japan
It is world's biggest manufacturer of 2 wheeler vehicles.
Dharuhera , Gurgaon and at Haridwar these plant are capable of
manufacturing 3.9 million bikes per year.
capacity of these plant 6,000 units per day.
There are about 1,200 permanent workers, while 4,000 are on contract .
Case study : HERO HONDA
Place : Hero Honda Gurgaon Plant
Strike Duration : 10 April 2006 - 14th April 2006
No. of workers involved: 4000
Casual workers Demands: Wage hike, extra casual leave and medical
benefits at par with the permanent workers.
Financial Loss: Loss of ₹ 100 crore .
Around 4000 contract workers of Hero Honda's Gurgaon Plant
(owned by Pawan Munjal ) were refuse regularization for the last 7 to 8
A Contractual Worker Average paid is ₹ 5000 P/M and ₹ 40,000 P/M
salary of a Permanent Worker performing the same job.
Contractual workers recruited not only get low wages but also do not
receive any pay slip or cards. The casual helper at the plant gets a
meager ₹ 2000-2500 at the end of the month. The management and the
contractors are equally involved in the exploitation of the contract
14th April 2006, A Tripartite meeting was held between Haryana's
Additional Labor Commissioner, Management and Worker
Representatives and they agreed for a settlement, under which some
demands were met. It was an important victory for the contract
workers, who are otherwise forced to live in miserable conditions.
The agreement included : 30% hike in salary ,Two days of casual leave
every month and Medical benefits in accordance with the company
rules, Issuing identity cards ATM cards Opening bank accounts for the
ACTION TAKEN &SOLUTION:
Production at the plant, which makes about 6,000 bikes a
day at Gurgaon was paralyzed.
It lead to the loss of ₹ 100 crore to the company. It severely
impacted the industrial environment in the state and
hence it was a concern for all industry.
EFFECT OF THE STRIKE
Issues between the management and workers should be resolved
There should be a good communication link between the worker and
Management should not suppress the rights of the worker.