industrial relation

1. TOYOTA – Case Study
BY :
J.Subhashine – 3511140024

2. COMPANY BACKGROUND
• Joint Venture : Toyota & TKM ( Toyota
Kirloskar Motor Private Limited ) , Karnataka –
Oct 6th , 1997
• No of Employees : 2358 as on Jan 2006
• Trade Union : TKMEU ( TKM Employees
Union)
• Members of TKMEU : 1550 Workers

3. • Place : Bidadi plant of carmaker Toyota Kirloskar
Motor Private , B’Lore
• Investment in the plant : 1500 Crore
• Type of car produced : Innova , Corolla and
Camry cars
• First time strike : May 2005
• Reason for strike : Hike in wages
• Reason for hike in wages : 99% production &
100% quality (working in shift)

4. • During strike : 15 employees were sacked & 3
were suspended
• Reasons for suspension : For attacking supervisor
& misconduct
• Solution to the strike : Wages were revised ( 15 –
20% wage hike )
• Second time Strike : Jan 6th 2006
• Reason for second time strike : case of 3
suspended workers remained unresolved

5. • Strike Type : flash strike
• Why illegal strike : Employee Union did not
give 14 days notice period ( Dispute Act )
• During strike :
400 employees blocked the road
Threatening to blow LPG Cylinders inside the premisis
Obstructing outward movement of manufactured
vehicle
Illegally stopping production
Mishandling other workers

6. • Supporters of the strike : CITU
• Why CITU support :
– TKMEU affliated to CITU
– Working condition inhuman
– Slave like treatment
– Stretching working hours
– No sufficient relaxation & compensation
• Loss due to strike :
Production :
Normally - 92 cars per shift
during lockout : 40 cars per day
INR 700 MILLION loss
• Period of Lockout : 15 days
• Why Lockout : Safety of plant & worker

7. NEGOTIATION & COLLECTIVE
BARGAINING
• Jan 9TH , 2006 : the representatives of
– TKM, were asked to present
– TKMEU, before DLC ( Deputy
– CITU Labour Commissioner ) -
Order given by State Govt
• Parties involved in Resolving :
TKM , TKMEU , CITU , State Govt , Additional
Labour Court

8. RESULT
• Jan 20TH , 2006 - TKM's management lifted the
lockout .
• Agreement :
– Workers had to sign Good Conduct Declaration
– Ensure full production
• Also trained 700 people to work in shop floor
to work during emergency

9. • Karnataka Govt : Called off strike ( Essential
Service Act )
• TKMEU : Employees signed the good conduct
declaration.

10. RESOURCES
• http://www.moneycontrol.com/news/busines
s/toyota-workers-call-off-strike_199264.html
• www.financialexpress.com/news/toyota...for-
strike...bidadi.../138752
• www.icmrindia.org/.../
• news.techwhack.com/2880-toyota-facing-
strikes-at-their-bidadi-plant/
• www.thehindubusinessline.com/2006/01/.../2
006010903090500.htm