Industrial Relations At

Toyota Kirloskar Motor Private Limited.

Presented By:
Miss. Suvidha Suresh Pawar

Submitted To:
Prof. Advocate Vijay Trivedi.

Toyota Kirloskar Auto Parts Pvt. Ltd., (TKAP) is an auto parts manufacturing company in India. Joint venture among Toyota Motor Corporation, Japan, Toyota Industries Corporation, Japan and Kirloskar

Systems Limited, Bangalore.

Established its plant at Bidadi on October 06, 1997, initial investment of Rs. 7 billion. Toyota: 74 % and Kirloskar Group: 26 % stake in the joint venture.

Contd..
TKAP is having two plants, viz., 100% EOU, transmission plant and a domestic axles plant. EOU Plant: manufactures transmissions and is a key

supplier for the Toyota both globally and locally.

Axles plant: manufactures Front Axle, Rear Axle and

Propeller Shaft for INNOVA to Toyota Kirloskar Motor Private Limited . plant to manufacture engines and expand its EOU to supply transmisions for ETIOS.

As a part of localization project, TKAP is setting up new

Company Description
Toyota Kirloskar Motor Private Limited (TKM) aims to play a

major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries.
yet important aspect of its business philosophy - "Putting Customer First". While managing growth, TKM has maintained its commitment to provide quality products at a reasonable price. Karnataka state, India.

TKM's growth since inception can be attributed to one simple,

TKAP is located at Bidadi, 32 KM from Bangalore in TKAP has about 200,000 Sq mt of land area and a human

capital of 1000+ members.

IR Problems at Toyota Kirloskar Motor Private Limited

Case Details: Case Code:HROB088 Period: 2000-06 Organization: Toyota Motor Corporation, Toyota Kirloskar Motor Private. Industry: Automobile Countries: India

Abstract
The case examines the industrial relations problems at

Toyota Kirloskar Motor Private Limited (TKM), an Indian joint venture between Japan based Toyota Motor Corporation and Kirloskar Motors. 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.

Issues
Understand the factors that lead to strikes and lockouts

at a factory and the impact of such happenings on the employees and the company. labor unrest at the workplace.

Study HR policies adopted by organizations to prevent Examine the role played by the top management in

ensuring peaceful working environment.

Analyze the role of external parties such as trade

unions; political parties etc in disturbing the working environment in a company.

Statements By Experts

"We have requested the government to intervene in the matter immediately and prohibit the lockout declared by the management which is illegal. The government should prosecute the management for violating labour laws and issue immediate relief to the dismissed employees such as reinstatement and payment of wages during the dismissed period." - Meenakshi Sundaram, General Secretary, Centre of Indian Trade Union, Bangalore, in 2006. "How long can we put up with unruly behaviour? We would like to restore normalcy as soon as possible, but at the same time, we would not like to compromise on discipline." - A R Shankar, General Manager, Corporate Planning Division, Toyota Kirloskar Motor Private Limited, in 2006. "There are another 11 people suspended by the management and we fear they may also be dismissed. We are officially supposed to work for eight hours but we are overworked sometimes. And we are treated in such a way, that we can't even take a bathroom break when we want." - R. Ravi, Union Joint Secretary, Toyota Kirloskar Motor Employees Unions, in 2006

Introduction Of Case
On January 08, 2006, Toyota Kirloskar Motor

Private Limited (TKM) declared a lockout at its plant in Bidadi, Karnataka. Agitation. February 2004: 15 employees suspended. 2006: 3 out of those 15 employees dismissed; Management: Core reason-indiscipline and poor performance.

Introduction Contd..
Strike by TKM Employees' Union (TKMEU).

Reinstation.

January 2006, TKM had 2,358 employees on its

rolls at Bidadi. Of these, 1,550 workers were members of the TKMEU. Workers once dismissed would not be taken back. The workers immediately went on strike. Lockout by company- indefinite period

Labor Relations at TKM

TKM had had a history of disturbed relations between the

management and the workers, from 2000. Three other strikes: Two in 2001 One in 2002 The first strike at TKM began in April 2001, and it went on for about two days. The second one was in June, the same year. In 2002, the company decided to call the workers in two shifts. The first shift at TKM started at 8 AM and ended at 4 PM. The workers in this shift were asked to work overtime for four hours between 4 PM and 8 PM.

The Dispute
January 05, 2006, three workers dismissed out of

the fifteen that had been suspended in February 2004. According to the management, the three workers, Prasanna, Sridhar Dhote, and Satish, had been dismissed as the year-long investigations carried out by TKM had proved that they were guilty of misconduct which included violent behavior, disruption of work, and assault on a supervisor.

Negotiation
TKM's management presented the labor issue

before V N Hittanagi, the Deputy Labor Commissioner (DLC) of Karnataka (Region II). The management, however, maintained that it would not go back on its decision on not reinstating the dismissed workers. On January 09, 2006, the representatives of TKM, TKMEU, and the CITU were asked to present their case before the office of the DLC at a conciliatory meeting.

Role Of Management
On January 20, 2006, in a sudden turnaround, TKM's

management announced in the local newspapers that it would lift the lockout. lockout would be lifted from January 21, 2006 onward. However, the workers reporting for duty were asked to sign an undertaking to maintain good conduct. Commenting on the decision, Shankar said, "The management has decided to lift the lockout in response to the request of several employees who have expressed willingness to resume work...

The Result
TKM did not face any major problems due to the

strike of the workers and the lockout at its plant, having ensured that the market supply was not affected by either. TKM had made appropriate arrangements to meet the market demand for its cars in the event of the talks failing between the management and the union...