4. CASE OVERVIEW
• On July 25, 2005, the management of the Honda
Motorcycle & Scooter India (Private) Limited, (HMSI), a
wholly-owned subsidiary of Honda Motor Company
Limited (HMCL), encountered violent protests from
workers that disrupted production at their plant in
Gurgaon.
HMSI workers were severely beaten up by the police, and
newspapers and TV channels gave wide coverage to the
violence of the action. The protest followed six months of
simmering labor unrest at the HMSI factory in which the
workers also resorted to job slowdown (since December
2004 when the workers' demand for an increase in wages
was rejected by the HMSI management).
5. THEORIES CONNECTED TO THE ISSUES
AREAS
SPECIFIC TOPICS
Labour Laws
Industrial Disputes Act (Strikes, Lockouts, conciliation etc.)
Trade Union Act
Factories Act (Working Conditions)
Managing Employee Relations
Principles of natural justice
Globalisation and Industrial Relations
Human Resource Management
Collective Bargaining and Grievance
management.
Human Resource Planning
Employment Decisions like Hiring etc.
7. QUESTION : 1
• In light of this case, discuss the issues
and challenges faced by organizations
witnessing labor unrest. How can labor
disputes be resolved ?
8. ISSUES INVOLVED
Management approach of non consideration to
demand of workers .
Management considered workmen’s activity as
indiscipline and violent protests.
Allegations of workmen on management like
- Unhealthy working conditions
- Low wages.
- - Arbitrary management decisions
In total the company lost about 1.2 Billion Rupees due to
the strike.
9. ALTERNATIVES OR APPROACHES TO ADDRESS THE
ISSUES
1. Set up of strong machinery for resolving disputes
through collective bargaining and grievance redressal
forum.
Address to working conditions issues.
Wage hike
To ensure employee participation
10. ALTERNATIVES OR APPROACHES TO ADDRESS THE
ISSUES
2. Implementation of certain important and path-breaking
recommendations made by the National Commission on
Labor in the context of review of Labor law
It explains the bonus systems for the employees
I t recommends a three-tier system of Lok-Adalats, Labor
court and the Labor Relation Commission.
It will evolve policies and instruments to regulate employer employee relationships .
11. ALTERNATIVES OR APPROACHES TO ADDRESS THE
ISSUES
3. A strong Indian management at the top to reduce the
cultural differences between the Japanese and the Indians.
This will ensure healthy work environment.
Mission and Values of the organization can be effectively
communicated and easily understood.
12. ALTERNATIVES OR APPROACHES TO ADDRESS THE
ISSUES
4. Board of enquiry should be set up.
This would check the validity of allegations of both the
workmen and the management.
This would also check under what conditions the terms of
agreement was signed and to what extent it was implemented
.
13. ALTERNATIVES OR APPROACHES TO ADDRESS THE
ISSUES
5. Proper channels of communication to be set up by the
management .
Objectives, vision and values can be easily communicated to
the employees.
Improve the trust factor and transparency between the
management and the workmen.
It shall reduce the levels of hierarchy between the workmen
and the management.
14. QUESTION 2 :Critically analyze HMSI’s decision to set up a
plant outside of Haryana. Do you think the
company could benefit from such a move
considering that labor unrest is widespread
INDIA ?
