PRESENTED BY : SHIRSHO DEY HARSH YADAV

SHRAVAN PUROHIT
SUNIEL SRI RAHUL AGARWAL NAVEEN SHARMA

Contents
Case overview Theories applicable to the case Case study Q&A

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).

THEORIES CONNECTED TO THE ISSUES

AREAS Labour Laws SPECIFIC TOPICS Industrial Disputes Act (Strikes, Lockouts, conciliation etc.) Trade Union Act Factories Act (Working Conditions) Principles of natural justice Globalisation and Industrial Relations Collective Bargaining and Grievance management. Employment Decisions like Hiring etc.

Managing Employee Relations

Human Resource Management

Human Resource Planning

Grievance handling

Collective bargaining

QUESTION : 1
In light of this case, discuss the issues and challenges faced by organizations witnessing labor unrest. How can labor disputes be resolved ?

ISSUES INVOLVED
Management approach of non consideration to demand of workers .

Management considered workmens 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.

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

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 .

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.

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 .

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.

QUESTION 2 :Critically analyze HMSIs 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 ?