WRITTEN MATERIAL OF “CASE BASED PRESENTATION” ON “HONDA UNREST” OF THE SUBJECT
MANAGEMENT PRACTICES AND ORGASTIONAL BEHAVIOR
Submitted to Miss. ALKA SHARMA sahil kashyap
submitted by : Roll no: B-25 Regd no : 11002637
the workers tried to form a trade union and this resulted in a confrontation with the management. 2005. (HMSI).LABOUR UNREST
Labor unrest is a social phenomenon of enormous complexity and it is very difficult to give any complete explanation of this phenomenon. Apparently there was a show of strength between the management and the workers. wage would continue to be major consideration in labor unrest. Fifty workers of the production team were suspended and four others dismissed in May 2005. HMSI workers were severely beaten up by the police. and newspapers and TV channels gave wide coverage to the violence of the action. the workers of the plant were demanding reinstatement of the suspended employees when some workers allegedly attacked policemen on the
. With their demands being rejected by the management. Considering the nearing period of labor unrest with the recent cases of Honda and Maruti. It is a matter of controversy whether the predominant factors underlying labor unrest are economic or non-economic. the management of the Honda Motorcycle & Scooter India (Private) Limited. The protest followed six months of simmering labor unrest at the HMSI factory in which the workers also resorted to job slowdown8 (since December 2004 when the workers' demand for an increase in wages was rejected by the HMSI management). encountered violent protests from workers that disrupted production at their plant in Gurgaon7. the workers alleged that the management was using pressure tactics such as victimization of active union members and a 'lock-out'10 to break the back of the union. it is the time to do root cause analysis and find out what are the possible reasons which lead to labor unrest so as to address these issues and untide the tide of labor unrest. While the management alleged that the workers were resorting to 'go-slow'9 tactics and were threatening not to return to work until their colleagues had been reinstated. It has been concluded that so long as income remained the all important means for satisfying human wants and needs. a wholly-owned subsidiary of Honda Motor Company Limited6 (HMCL). On July 25. 2005.
On July 25.
the company also received a lot of negative publicity as newspapers and TV channels gave wide coverage to the violence of the action. 2005
. 2005 A Honda official kicks a worker.
Time line of events January 17.
May 30. even without any direct request from the company's management (Refer to Exhibit I for some images of violence during the HMSI protest). Labor strife and the management's inability to deal with it effectively had resulted in huge losses for the company due to the fall in the production level at the plant.This led to police intervention and a violent tussle ensued between the police and the workers in which workers protesting peacefully were also beaten up. same day all workers stopped from entering company premises. The case discusses the various reasons which led to the dispute between the management and employees of HMSI. which led to the strike at the company that resulted in HMSI workers being severely beaten up by the police. company willing to allow workers in if they
July. the incident brought to the fore the need to maintain sound industrial relations to ensure productive and profitable operations.For companies.
The case study focuses on the HR problems faced by Honda Motor Cycle & Scooters India HMSI. The police were reported to have overreacted and it was alleged that they had been overzealous in protecting the interests of the HMSI management. In addition to this. 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. 2005
. AITUC leader gurdas dasgupta complains to harayana chief Minister. 6. workers get unions registered.Dass gupta meets the prime minister of India after writing to him.plant premises. 2005 May 26. company dismisses four unions Office bearers and suspends over two dozens workers. 27. It elaborates the incidents. 2005 June. .unofficial lockout.
July 21. » Examine top management's role in maintaining a peaceful working environment.30 P.
1. over 500 policemen surround them and Beaten up them. Deputy superintend of police were beaten-up. workers told by police to go to mini.unions asked why workers not allowed in despite giving Undertaking. workers assemble there.Sign undertaking.secretariat at gurgaon to Submit memorandum.00 AM. 2005 July 25.30 P.11. 2005 .
. » Study HR policies adopted by organizations to prevent labor unrest at the workplace.M
» Understand the factors that lead to labor unrest at a factory and the impact of such incidents on the employees and the company.about 3000 marching workers clash with people. .M 2.
The company as per the agreement reached b/w them promised the injured workers paid leave.. under which all employees.. It is clear that management took the easy way out instead of addressing a legitimate worker demand for better pay. discipline. devotion to duty. they resorted to a “go slow” technique. All the settlement was brokered by the HARAYANA GOVT. including the four dismissed and 50 suspended. would be taken back. meet company targets. 2005 morning at 6:00 AM. (2) HR policies adopted by organization to prevent labor unrest at the work place and top management's role in maintaining a peaceful working environment.
. a development that provoked the violence. HONDA would also increase the wage of employees and would not take ant desplinery action against workers who agitated against the company. In the beginning of July. the second shift at the Honda factory started at 2:00 PM. while the third started at 11:00 PM. after signing an undertaking in which said they “shall abide by good conduct. Trouble has been simmering in factory. Security arrangements in place to prevent any untoward incident and around 30-40 policemen were posted outside the factory. the first batch of workers resumed work on AUGUST 1. Management responded by hiring temporary workers to boost output. Bringing to an end a month-long labor problem. 29. Some injured workers also reached the factory to carry out certain formalities for payment for their treatment. replacing them with contract laborers and raising the daily output to 1000 motorbikes. Honda management suspended some (50) workers and dismissed 4 others. 2005 night. and finally things came to head when workers demonstrated and were brutally beaten by police. They signed undertaking and went to hospital after taking a half day leave. completely observe the certified standing orders applicable to the establishment and refrain from sabotage activities” etc.ANALYSIS
When the Honda facility’s workers wanted a raise and found the management unwilling to make concessions. . The workers would not get salary during the period they were on strike. the stalemate ended with the management and agitating workers reaching an agreement on late July.
2005. They blamed each other for the situation that ultimately took an ugly turn on July 25.. The potential problems can then be researched to find the root cause and correct it.
.. The five heads are as follows: Monetary Political Legal Job Specific Others The Blame Game The management and the workers traded allegations and counter allegations on what the root cause of the dispute was.. They alleged that HMSI's management had violated certain laws relating to the welfare of workers It was reported that a worker had allegedly been kicked by a Japanese manager on the shop floor in December 2004.. The services of four other workers who had come to his rescue were allegedly terminated. while the workers insisted that there had been no indiscipline on their part and that the management was bringing up this issue only to prevent the formation of a trade union at HMSI. Violation of Laws Some analysts charged that the incident was fallout of the long-term oppression and malpractices at the Gurgaon factory by the HMSI management. The management held the workers responsible for indiscipline and for slowing down production. it is concluded that all the possible reasons can be classified into five major heads.ROOT CAUSE ANALYSIS
From the study of some of the strikes and lockouts over last 10 years.
to the extent possible. Also there is a larger question of providing social security to the workers employed in the organized sector. especially the trade unions and the employers are addressed. They equally need each other and the relationship between the two can only be harmonious if they work towards defending each other's interest rather than contesting the same. There should be a general consensus on the labor reform ideology among the major political parties. is denied fair wages and even modest levels of social security. it may be coupled with good and clean corporate governance. This may further be strengthened through a wider debate involving academicians. Industrial bodies have to take up workers education. Political leaders should look beyond their narrow interests and develop consensus for the larger benefits of the Indian economy. The vast unorganized labor force. The high job insecurity and unemployment in the country virtually forces the contract workers to insure compliance to employers. and labor prejudices. Government should make all possible efforts to dispel the fears of trade unions by enlarging the scope and coverage of the social security net. All the stakeholders should arrive at some consensus so that there is something for everyone. Hence no solution can be reached if the stakeholders continue to take extreme positions. Hence. Workers on the other hand realize the importance of 'no work no wages come'. Once such consensus is developed. Hence employers should pay more attention to human resource development and capacity building of their employees. labor market flexibility must be accompanied by some kind of insurance and social security to the vast unorganized labor force in the country. There has to me a meeting ground to address everyone's interests. legal experts. which constitutes over 90 per cent of the total.
POSSIBLE ALTERNATIVE SUGGESTIONS
Though there are significant conflicts in the interests of the trade unions and employers. It demands to bring in a balanced view whereby concerns of all the stakeholders. It enhances the control of the employers at the workplace.CONCLUSION
It must be recognized that labor market reforms are not going to be easy in a situation where employment opportunities have been shrinking. policy makers and public at large. They have to realize that employer and employee are not separate entities but two faces of the same coin. The immediate challenge in bringing about the desired labor reforms is to resolve the anti-labor stand in the employer's mindset. the contact workers are quite freely changed by employers owing to high vulnerability of those workers. Hence. the trade unions are keen to develop strict norms of employing least number of
http://www.org/strategy/Balanced_Scorecard.gov. it is a challenge to both the employers and trade unions to reach to a common ground to get solution to the present situation.asp http://www.icmrindia.com/Occasional_Papers/OP77/op77.htm
.themanager.in/honda.contract labor and higher number of regular employees.com/1750-hero-honda-expels-3500-workers http://www.indianmba.com/Occasional_Papers/OP77/op77.htm http://news.org/casestudies/catalogue/Human%20Resource%20and %20Organization%20Behavior/HROB104. In such scenario.techwhack.html http://www.