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INTRODUCTION

• THE RIOT IN LABOUR MANAGEMENT DISPUTE IN


GURGOAN.
• THE LEFT PARTIES IN POWER ARE THE FORCE BEHIND
THIS RESURGENCE.
• THE UPA GOVERNMENT IN CENTER AS A MAJOR
CONDUSIVE ENVIRONMENT.
• WHAT HAPPENED ON BLACK MONDAY DOES NOT
HAPPEN AGAIN.
• THE LABOUR STRIKES GLOBALLY HIT ONCE IN 8 TO 10
YEARS.
• THE HONDA INCIDENT SHOULD BE TAKEN AS EARLY
WARNING OF A BIG WAVE OF LABOUR MILITANCY.
WHAT IS AN INDUSTRIAL
DISPUTE?
“According to Sec. 2 of the Industrial Disputes
Act, 1947, “Industrial dispute means any dispute
or difference between employers and employers or
between employers and workmen or between
workmen and workmen, which is connected with
the employment or non-employment or the terms
of employment or with the conditions of labour of
any person”.
CAUSES OF INDUSTRIAL
DISPUTES
CONCLUSION OF
EMPLOYMENT COLLECTIVE
SECURITY AGREEMENTS

WAGES
Procedures for Settling Industrial
Disputes

Conciliation
Collective
Negotiation & Arbitration
Bargaining Mediation

Grievance Adjudication
Procedure
History of Honda motors
company
• It is perhaps best known as an automaker.
• Third largest automaker in Japan and is the world's
top motorcycle manufacturer.
• Its best market is in the United States, where the
majority of its sales are generated.
• In 1949 Fujisawa provided the capital, as well as
financial and marketing strategies, to start the new
company.
• In 1950, Honda stunned the engineering world by
doubling the horsepower of the conventional four-
stroke engine.
• By 1951 demand was brisk, yet production was
slow.
• By 1954 Honda had achieved a 15 percent share of
the motorcycle market.
• In 1967 Honda diversified and also began to
produce cars and trucks.
Reasons For Unrest In Honda
Although 50 percent of these workers have worked in the plant for more
than six to seven years, they are not offered permanent contracts.

There is a huge wage difference: after six to seven years a permanent


worker will receive up to 30,000 Rupees per month while a worker hired
through a contractor gets between 2,200 and 6,200 Rupees.

Most workers have all kinds of trouble because they do not receive a
company card, which is necessary for dealing with authorities (e.g., when
applying for medical care or other benefits). They are not enrolled in the
register, which means that they will not receive PF or ESI.

Casual/workers (see glossary) hired through contractors are not given work
periodically as production targets change. When that happens, Rs 500 is
cut from their monthly wage.

There have been cases of physical harassment of the workers hired through
contractors by supervisors and managers of Hero Honda.
Workers’ Demand
• A 30 percent hike in wages of casual workers. Workers hired through
contractors used to get Rs 4,000-4,500 a month for an 8 hour shift. That
will now be Rs 5,500. In comparison, ITI graduates (skilled workers hired
through contractors) get Rs 6,500.

• Besides this 30 percent hike, there will be no difference in dress colour


between helpers and ITI graduates. The initial demand to abolish the
different uniforms for permanents and temps has not been met.

• The wage of the contract workers will go into a bank and they will have
ATM accounts.

• They too will get a gift annually.


Root Cause Analysis

Monetary Political

Others

Legal
Job Specific
Suggestions for Settling the
Disputes
• One way to maintain the balance of control would be to
develop well specified procedures to retrench employees.
Such procedures do not provide flexibility to the employers
to retrench arbitrarily. Hence, it could protect the balance
significantly.

• Some mechanism could be developed whereby, the


company retrenching the employees should take an
undertaking that whenever it needs to diversify or need
more manpower, it shall give preference to the workers it
is retrenching at present.
Continued…
• Companies could also opt for unconventional problem
solution:-

– Cutting working hours of workers to avoid possible


retrenchments, transfer or redeployment of labour from
excessive labour to labour deficient units.
– Labour can be given three to six weeks break and
encouraged to go in for skill enhancement. It will lead to a
two way gain: personal growth for the employee and
employer can put to use worker's enhanced skills.
– Amendments under Industrial Relations Bill of 1982
should be implemented as it contains many provisions that
would attend to the current concerns like setting up of a
time-bound grievance redressal, fixing a time limit for the
adjudication of individual and collective disputes.
CONCLUSION
• LABOUR MARKET ARE NOT EASY IN SHRINKING
EMPLOYMENT OPPERTUNITIES.
• LARGER QUSTION OF SOCIAL SECURITY PROVIDED TO
WORKERS.
• GOVERNMENT SHOULD DISPEL THE FEAR OF TRADE UNION.
• NO SOLUTIONS IF STAKEHOLDERS TAKE EXTREAM POSITIONS.
• EMPLOYER AND EMPLOYEE ARE TWO FACES OF SAME COIN.
• EMPLOYER SHOULD PAY MORE ATTENTION TO HUMAN
DEVLOPMENT AND CAPACITY BULIDING.
• WORKERS MUST REALIZE THE IMPORTANCE OF
“NO WORK NO WAGES”