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Published by: Sunitha Konda on Mar 13, 2011
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"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."1 - 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."2 - 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."3 - R. Ravi, Union Joint Secretary, Toyota Kirloskar Motor Employees Unions, in 2006. Industry analysts opined that the strike at TKM raised doubts about the success of the Japanese style of management in the Indian context. They also recalled the July 25, 2005 incident at the Gurgaon6 plant of Honda Motorcycle & Scooter India Private Limited (HMSI), a wholly-owned subsidiary of Honda Motor Company Limited (HMCL)7, when there were violent protests from workers, disrupting production at the plant (Refer to Exhibit I for the labor unrest at HMSI). These incidents served to underline the fact that it was essential to ensure sound industrial relations for the smooth continuation of operations and the safety of management, workers, and the plant of companies (Refer to Exhibit IIA and IIB on statistics regarding the number of strikes during 2002-2006and lockouts and a list of industrial disputes in 2005 in India).

Commenting on the growing incidents of discord between management and workers, Surinder Kapur, Chairman of the Sona Group, an automotive component manufacturer, said, "This incident has brought to light the need to look at labor laws afresh. We cannot have archaic labor laws in a liberalized economy. Compare China and India not just on infrastructure but also on labor laws. It is much more liberal there (despite the Communist regime).8 Liberal labor laws are not about hire-and-fire at will but about more room for contract labor with a tenure of, say, three years or so, and more temporary workers. If there is a feeling that minimum wages are low, the government must work toward increasing them."9
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...

Labor Relations at TKM

From the time it started production operations in 2000, TKM had had a history of disturbed relations between the management and the workers. Prior to the strike and lockout in January 2006, the plant had experienced three other

. The first shift at TKM started at 8 AM and ended at 4 PM. On January 09. had been dismissed as the year-long investigations carried out by TKM had proved that they were guilty of misconduct which included violent behavior. in a sudden turnaround. The Negotiations TKM's management presented the labor issue before V N Hittanagi (Hittanagi). The Result TKM did not face any major problems due to the strike of the workers and the lockout at its plant. Commenting on the decision. In an advertisement. the workers reporting for duty were asked to sign an undertaking to maintain good conduct. the representatives of TKM. Shankar said.. having ensured that the market supply was not affected by either. the three workers. The workers in this shift were asked to work overtime for four hours between 4 PM and 8 PM. and Satish.. "The management has decided to lift the lockout in response to the request of several employees who have expressed willingness to resume work. 2006. According to the management. The second one was in June the same year. In 2002. and assault on a supervisor. and a strike and a lockout in 2002 that lasted for almost two months. However. 2006.. disruption of work. maintained that it would not go back on its decision on not reinstating the dismissed workers. Prasanna. Exhibits Exhibit I: Labor Unrest at HMSI Exhibit IIA: Number of Strikes and Lockouts in India (2002-06) Exhibit IIB: Industrial Disputes in India (2005) . and the CITU were asked to present their case before the office of the DLC at a conciliatory meeting. TKM's management dismissed three workers out of the fifteen that had been suspended in February 2004.. 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.. TKMEU. The first strike at TKM began in April 2001.. the Deputy Labor Commissioner (DLC) of Karnataka (Region II). The management. and it went on for about two days. however.. 2006 onward. The Dispute Continues On January 20. it said that it was happy to announce that the lockout would be lifted from January 21. Sridhar Dhote..strikes: two in 2001. TKM's management announced in the local newspapers that it would lift the lockout. 2006. the company decided to call the workers in two shifts to meet the increased demand for the company's cars. The Dispute On January 05..

Most of the plant’s workers earn between 10. Petersburg plant. Hours of labour Buckingham and carnatic mills :-there was a solar eclipse lasting until noon on November 1’1948.The noon shift workers who came to work at 3.The madras labour union requested the mgt to suspend working of morning shift and declare it a holiday. with membership rocketing to more than 1. the production boost will nevertheless add pressure to workers who already do overtime in the hope of a bigger paycheck.700. the union official said. While Ford plans to add to its workforce of 1.000 rubles (600 US-Dollars) per month.The workmen.700.a large number of workers applied for leave.000 rubles (350 US-Dollars) and 17. While Ford plans to add to its workforce of 1.Exhibit III: Trade Unions in India Exhibit IV: Employment Laws in India Examples Rates of wages Ahmedabad textile mill wage dispute led the workers to go on strike in 1918. In comparison.100 from just 112 in August.demamded that they shuld also be paid holiday and on mgt’s refusal to grant the demand.00pm however. the union official said. putting additional pressure on its work force.The mgt ultimately agreed to grant halfday paid holiday to morning shift workers only.however. Recent discontent over terms and conditions has led to a dramatic increase in union members.The aim was to put economic pressure on employers and workers pledged not to return on work until their demands were fulfilled. In comparison. resume work until about 9 pm. The workers demands come as the firm is planning to almost double production at its St.000 rubles (600 US-Dollars) per month. Trade unionism . Petersburg plant. putting additional pressure on its work force.000 rubles (350 US-Dollars) and 17. Ford workers in Brazil earn between 560 and 910 US-Dollars per month as well as receiving 1 percent of the profit a plant makes. Recent discontent over terms and conditions has led to a dramatic increase in union members.Mahatma Gandhi leaded this strike On 30th of September Ford workers in Russia threatened to strike if management refuses to increase wages by 30 percent and offer other concessions.The mgt rejected all of these leave application and exhorted workers to work. with membership rocketing to more than 1. Ford workers in Brazil earn between 560 and 910 US-Dollars per month as well as receiving 1 percent of the profit a plant makes.100 from just 112 in August.it being understood that afternoon and night shift workers would work as usual. The workers demands come as the firm is planning to almost double production at its St. On 30th of September Ford workers in Russia threatened to strike if management refuses to increase wages by 30 percent and offer other concessions. Most of the plant’s workers earn between 10. the production boost will nevertheless add pressure to workers who already do overtime in the hope of a bigger paycheck.

The workers are granted a wage increase for the year. This is mainly due to the location of the strike: a modern factory of a multinational company in a developing region which up to that point was not seen as prone to industrial disputes.However.pending further enquiry.he was charge sheeted for absence without leave.suspended him.Strike at Honda in gurgaon :-The month-long strike/lock-out at HMSI and the police attack on the workers caused a big stir in India. The official justification for the dismissals was ”undisciplined behaviour in the factory”. more at http://www. Another four workers were sacked after they expressed their solidarity with their workmate.This led to a near industry-wide strike in delhi and state of UP. who was said to be engaged in organising a union within the plant.On resumption of duties.a typist and secretary of Punjab national bank employees union of delhi applied for 7 days leave.The mgt suspended 60 of aforesaid participating employees.sabbarwal refused to accept the notice.Even so sabbarwal absented him from duty.The mgt declined to grant him leave. more at http://www. Leave and absence In Punjab national bank. There is contradictory information on the question of whether the days of the strike will be paid or not. although we couldn’t find any info on the exact amount.html#ixzz16NbXFHib .html#ixzz16NbNweDQ About the Results of the Strike In total the company lost about 1. The Japanese ambassador told the media that the strike would endanger future investment by Japanese companies. others say that they won’t.000 workers and locking out the strikers.The employee union instructed employees to stick to their seats and to refuse to work until police intervened and threatened arrest or until orders of discharge or suspension were served on them.citehr. Some sources say that all strike days in May and June will be paid. The media presented the result of the strike as following: All dismissed workers are re-hired.2 Billion Rupees due to the strike.com/41134-strikes-lockouts. The conflict began in December 2004 after a manager allegedly hit a worker.com/41134-strikes-lockouts.The mgt therefore sent it to him by registered post and. under the condition that they sign a so-called ‘good-conduct’ declaration promising to abstain from further demands and strikes.Meanwhile a crowd gathered outside bank and some started shouting slogans in support of action of employees. The strike and the police attacks got huge public attention and caused diplomatic tension between India and Japan. The AITUC demands the release of all workers still in custody and union recognition in the company.one sabbarwal.This was done by coemployees of sabbarwal. At the end of June 2005 the management replied by officially sacking 1.citehr. The whole situation came to boiling point when the management sacked another 57 workers and nearly all the workers in the factory reacted by going on strike in June 2005.

if it is found that the strike is neither illegal nor unjustified. profit sharing. Provident fund and gratuity Retrenchment of workmen and closure of establishment Dispute connected with minimum wages Workmen shall be entitled to wages for the period of strike.Is that your factory is going to be closed permanently are your shifting your factory from the present site to some where else. If the employee union approach the Labour office of your jurdiction then that might also create a prbl'm. Hope these informations may help you to prepare the same at your end. First try to understand wat the employee need's & then only you can go for seetlement process . more at http://www.com/39954-information-causes-strikes. Some of these areDissatisfaction with Company Policy Salary Problems Incentive Problems Increment not up to the mark Discharge or dismissal of workmen wrongfully Withdrawal of any concession or privilege Mode of payments Hours of work and rest intervals Leaves with wages and Holidays Bonus.. and it leads to strikes or lock-outs. Kindly have a dialogue with ur union leader's & try to resolve at ur best. . Even partial stoppage of work also comes under strike.. there may be a lot of reasons for strikes or Lock-outs...Hi Aarti... Strike means suspension or cessation of work by a group of employees employees in any industry. An Industrial Disputes means any dispute or difference between employers and and employees. A strike is valid if it doesn't violate any provision of the law.citehr.html#ixzz16NbmVVnV Strike legal: Jiten my opinion on this regard when your management is ready for a settlement why the employees are not accepting .uintill & unless it wud be difficult to operate in day to day basis...

1956 I LLJ 588 4. Jute mills. Praboo Pandey vs. In the case of 'lay-off' owning to the reasons specified in S. whereas 'lock-out' is closure of business for the time-being. Illustrations : 1.html#ixzz16NcZf7G6 I am HR professional but labour law is my subject. Sasamusa Sugar works 1956 I LLJ. Industrial and General Engineering Co. State of Bengal 1960 I LLJ 244 (249) SC and in Mohammad Samsudin vs. The closure of palce the business for duration of three days which was in italiation to certain acts of workman was held to be lock out (express news paper case) 1962 II LLJ 227 (SC) 2. The phrase 'refusal by an employer to continue to employer any number of persons' in the definition of lock out corresponds to the phrase 'cessation of work' or 'refusal to continue to work or accept employment' occuring in the definition of this 'strike.com/267131-when-strike-called-legal. vs.more at http://www.citehr. The points of distinction between 'lay-off' and 'lock-out' may be broadly stated as follows: 1. 2(l). Remember that lock out exists only when it is interms of complete suspension of business activity in a particular business premises. In the case of 'lay-off'. whereas in the case of 'lock-out' the employer deliberately closes the business and locks out the whole body of workmen for reasons which have no relevance to the causes specified in S. Closure of a section of an industry carried on by employer on account of trade reasons was held not to be lock out and the closure of another section also as a result of the refusal of the workman to work in sympathy for the workman of the former section was held not to be a lock out. but liability for compensation cannot be invoked in case of . This phrase in the definition of lock out has to be red with rest of definition and also the word 'lock out' in totality these words. the employer is unable to give employment to one or more workmen. J. 3. 2 (kkk). Their workman 1964 II LLJ 438 (Mys.K.) Difference between lock out and lay off : The concept of 'lock-out' is essentially differnt from the concept of 'lay-off' and so where closure of business amounts to a 'lock-out under S. Temporary suspension of work necessitated by lack of stock was held not to constitute lock out. 2. SC has emphasized that these words have to given restricted meaning. Temporary stopage of work for lack of raw material was held not to be lock out. the employer may be liable to pay compensation as provided by Ss.' The phrase on which you have tried to put emphasis to draw the conclusion that you can refuse to employ 'any' number of person while continuing your rest of the business activity is infounded and is wrong interpretation. In Ferozdeen vs. 25D and 25E of the Act. The word 'any' connotes unlimited but with the condition that it has to be inrespect of temporary to other of business place or suspension of work on his premises.2(kkk). it would be impossible to bring it within the scope of 'lay-off' under S. 2(kk). 25C. 'Lay-off' generally occurs in continuous business. Anamallais Timber Trust Case 1952 II LLJ 604 3.

Most major IT companies in the city. 4.com/39279-lockout-under-industrial-disputes-act-1947a. have asked their staff to stay at home. Hope the issue is clear.D. There are some resemblance also : 1. Faced with frequent disruptions in Indian cities caused by unrest and natural factors like rains and flooding. Both 'lay-off' and 'lock-out' are temporary nature and both arise out of and exist during an emergency though the nature of emergencies in each case is different. The risk of trouble is highest when transporting staff to and from work. who want a larger share of the water of the Cauvery River. Both in 'lay-off' and 'lock-out'. said a spokesman for outsourcing company iGATE Global Solutions.citehr. 10A (4A). Staff at these companies will instead work on a Saturday to make up for the lost time. Last week the Cauvery Water Disputes Tribunal in Delhi ordered a resolution to a water-sharing dispute between the states of Karnataka and Tamil Nadu. to enable work to be moved quickly to another location if there is disruption at any location. to a halt Monday. 25Q.' 5. as the liability of the employer in cases of 'lock-out would depend upon whether the 'lock-out' was justified and legal or not.25-M is illegal and punishable under S. . more at http://www.'lock-out'. 3. IT companies in Bangalore transport a large number of staff each day to and from their offices. or asked staff to arrive at the office early. Act. 22 or 23 is illegal and punishable under S. 'Lay-off' resorted to in contravention of the provisions of S.html#ixzz16NdYdL4D A dawn-to-dusk strike call to protest against a tribunal order on sharing of river waters brought work at Bangalore’s IT companies. expecting trouble and even violence from the protesters. 'Lock-out' is resorted to by the employer as a weapon of collective bargaining and also ordinarily involves an element of malice or ill-will while 'lay-off' is actuated by the exigencies of the business. The provisions applicable to the payment of 'lay-off' compensation cannot be applied to cases of 'lock-out. 26 of I. Indian outsourcing companies have spread across multiple locations. the company has moved work to other locations for the duration of the strike. including outsourcing companies. including Indian subsidiaries of multinational IT companies. Shutting down operations for a day does not impact software development work. Bangalore is the capital city of Karnataka. the relationship of employment is only suspended and is not servered. while 'lock-out' declared in contravention of the provisions of Ss. 2. The order has angered the people of Karnataka. he added. For customer-facing functions like remote infrastructure management and business process outsourcing (BPO). 10(3).

BPO companies and call centers also moved work to other locations in the country.” said a spokeswoman for Infosys Technologies.“We have business continuity processes in place to ensure that client work is not affected. India’s second-largest outsourcer. . while some others asked their staff to stay overnight in the office so that they could be there for shifts Monday.

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