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UNFAIR LABOUR PRACTICES & INDUSTRIAL DISPUTES

IN TOYOTA
INTRODUCTION: TKM, a joint venture between Toyota and the Kirloskar Group,
established its plant at Bidadi on October 06, 1997, with an initial investment of Rs. 7 billion.
Toyota held a 74 percent stake in the joint venture while the remaining 26 percent stake was
held by the Kirloskar Group. In 1999, Toyota increased its stake to 89 percent. The case
discusses the various reasons, which led to the dispute between the management and the
employees of TKM. It elaborates the incidents, which led to the strike and lockout at the
company. The case highlights the growing number of instances of clashes between the
employees and the management of companies in India, which is often guided by external
parties such as trade unions and political parties.
PROBLEM STATEMENT: Industrial relation problems between the management of
Japan based Toyota Motor Corporation and Kirloskar Motors and the employee union of the
company..
MAJOR FACTS: Some of the major facts in the case are:
It was followed by a lockout citing safety concerns by the management
1. External party (CITU) interference
2. Dismissal of the workers on the ground of misbehavior
3. No hike in wages were announced accordingly
4. Increase of work shift to 12 hours from 8 hours
5. Worker’s indiscipline at workplace and consistent poor performance
6. Senior Official’s strict behavior
MINOR FACTS: Some of the major facts in the case are:
1. Worker’s unruly and rude behavior
2. About unrest at the workplace
3. No prior notice of going for a strike
4. No bathroom breaks were given during the shift
SUGGESTIONS/RECOMMENDATIONS: Some of the suggestions for this case
study are
1. If a lockout is prevailing for longer time, the company can outsource some of its
activities, if possible.
2. Proper break time, lunch time should be maintained
3. Overtime should be compensated optimally
4. Overtime should not be made mandatory, it should be made volunteer.
5. Employees could be called in different shifts, in order to avoid overtime of the
employees.
6. There should be a regular meeting happening between the Worker Union members
and management discussing various issues and grievances of the workers
7. A declaration stating the disciplinary rules and work ethics at workplace should be
taken from the workers before joining
8. As both strike and lockouts are illegal, it should be banned
QUESTIONS:
1. Who are the different stakeholders in IR and Write out in detail about their
duties they should have obliged to solve the issue?
A: The different stake holders in the case are
1. Workers
2. Employees
3. Management
4. Government
5. External Trade Unions
The duties that they should oblige to solve the issue are:
1. Unfair labour practices should not be done
2. Halting of the production and productivity in the company
3. Proper intimation and communication about their distrusts towards the policies
laid by the company.
4. Protocol must be maintained in appealing to the problems that are faced.
5. Proper protocol and channel of solving the problems must be followed by the
trade unions and workers.
6. Proper framework of dispute settlement mechanism should be laid down by the
management.
7. External Trade unions unnecessarily should not influence or provoke the internal
employees for greedy practices.
8. Employees should always keep in mind that they must feel responsible and should
try to mould such workers to not to cause disturbance to the organization and its
working environment.
9. Proper participation of the persons who are critical.
10. Code of Conduct and discipline also should be intimated and it must be clearly
communicated to all the level of employees and works.
2. If you were the IR head of TMK, how you would have solved the case?

A: If I would be the IR head of TMK, I would have solved the case by applying two
procedures:
1. Method of Dispute Settlement: The method which I would employ is
CONCILIATION, by employing a person who is outside the organization and
accordingly the opinions of both the parties would be heard. Rather than making the
external trade union parties to be involved,
2. Type of Collective Bargaining Strategy: The bargaining strategy I would be using
would be “INTEGRATIVE BARGAINING STRATEGY” which means both the
parties should come to a common point of understanding which benefits both the
employers and trade unions. After that, a written agreement should be created
between both parties so that it will not create any disturbance the firms working
atmosphere and code of conduct.
CONCLUSION: The development of the countries production and automation depends
on the labour welfare and employability skills of the organizations. The health of the
country’s economic and financial status is directly linked to the proper handling of issues of
industrial relations prevailing out from different industrial sectors .Last but not least, Failure
leads to problems, effective way of handling situations leads to the progress of development.