You are on page 1of 9

LABOUR UNREST AT TOYOTA:

THE DECISION DILEMMA

Presented By:
G.Namratha
PGDM-HRM
1408005

COMPANY BACKGROUND
Japanese automobile manufacturer
Joint

Venture:TKM(Toyota Kirloskar Motor


Private Limited), 1997
TKM established its manufacturing plant at
Bidadi, near Bangalore
Started commercial production of cars in 2000

ABOUT THE CASE


Place:

Manufacturing plant at Bidadi near


Bangalore
Manufactured: Corolla, Camry, and Innova
Work force: 2378 out of which around 1550
employees belonged to TKMEU, the only
company recognized trade union
Union was affiliated to the Centre for Indian Trade
Unions(CITU)

CONFLICT
Conflict: Between management and union began

in 2004
Suspension of 15 workers
Reason for suspension: For misconduct,
including and assault on a supervisor and
disruption of work
An independent inquiry committee was formed to
inquiry into the misconduct by the suspended
workers

STRIKE
Strike: On January 6th , 2006
Union did not give the mandatory 14 days notice

period before going on strike


During strike:
Union blocked the road to the plant
Stopped production
Obstructed the movement of cars from the plant
Man handled and forcibly prevented nonunionized workers
Threatened to blow up LPG gas storage tanks
inside the plant

LOCKOUT
Lockout: January 8th, 2006
Decision was taken on the third day of the strike
The Karnataka government took steps to reach

amicable solution between management and


workers union
Dispute regarding the dismissal of 3 employees
are referred to DLC
On January 9th,2006, DLC convened a tripartite
meeting to resolve the dispute

On January 12th ,2006 DLC failed to resolve the

dispute
DLC suggested immediate withdrawal of strike by
the union and lifting up of the lockout by the
company

GOVERNMENT INTERVENTION
Karnataka government was eager to settle the dispute

at the TKM plant to project the state as investor


friendly
Government was pressurized by the trade unions to
intervene into the matter and resolve the dispute in
unions favor
January 20th, 2006- TKMs management lifted the
lockout
Agreement: Workers has to sign good conduct
declaration which is stated that
- Maintain discipline in the plant
- Ensure full production

THANK YOU