Industrial Disputes

CASE STUDY
CONTENT :
Introduction
Causes of Industrial Disputes
Settlement of Industrial Disputes
Case Study : HERO HONDA
The Blame Game
Conclusion
 What is Industrial Disputes ?
 Any dispute or disagreement between employer and
workers, employer and employers or between worker
and workers which is related to the employment in the
industry such as wages, dearness allowances,
promotion, discipline & other social security benefits.
 Industrial disputes in industries should be reduced to
minimum, so that there is no work stoppage.
 Causes of Industrial Disputes
Industrial Factors : Matter related to employment,
work ,wages, hrs of work, privileges & obligations of
employees and employers.
Management Attitude towards Labour : Management’s
unwillingness to talk over any dispute or to recognize a
particular trade union etc.
Other causes such as affiliation of the trade unions
with a political party, where latter may instigate the
trade union to conduct strikes , lockouts etc.
Settlement of Industrial Disputes
 Case Study : HERO HONDA (Intro)
 Hero Honda Motors Limited.
 Joint Venture 1983 :- The Hero Group of India & The
Honda of Japan.
 It’s the world biggest manufacturer of 2 wheeler
vehicles.
 The plants at Dharuhera, Gurugram & Haridwar are
capable of manufacturing 3.9 mn bikes per year.
 There are about 1200 permanent workers, while 4000
are on contract.
Case Facts :
 Place : Hero Honda Gurgaon Plant
 Strike Duration : 10th April 2006 – 14th April 2006
 No. of workers involved : 4000
 Casual workers demands : Wage hikes , extra casual
leave and medical benefits at par with the permanent
workers.
 Financial Loss : Loss of ₹100 Cr. Approx.
Background :
Around 4000 contract workers of Hero Honda’s
Gurgaon plant were refused to regularisation for past
7-8 years.
An contractual worker average paid was Rs.5000/pm
whereas it was Rs.40000/pm for the permanent
workers to perform the same job.
Recruited contractual workers were also not provided
with any pay slips or cards.
The management and the contractors are equally
involved in exploitation of contract workers.
Effect of the Strike :
Production at the plant, which makes about 6,000
bikes a day at Gurgaon was paralyzed.
It lead to the loss of Rs.100 Crores to the company. It
severely impacted the industrial environment in the
state and hence it was a concern for all industry.
 The Blame Game
The management and the workers traded allegations
and counter allegations on what the root cause of the
dispute was. They blamed each other for the situation
that ultimately took an ugly turn. The management
held the workers responsible for indiscipline and for
slowing down production, 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.
 Action Taken & Solutions :
14th April 2006, A tripartite meeting was held between
Haryana’s Labour Commissioner, Management and
Worker’s Representatives and they agreed for a
settlement, under which some demands were met.
The agreement included : 30% hike in salary, two days
of casual leave every month and medical benefits in
accordance with company rules, issuing identity cards,
ATM cards, opening bank accounts for the casual
workers.
Thank You!

Submitted By : Harsh Kr. Jain

Roll No. : ECE/17/308