CASE STUDY: HERO HONDA

MADE BY:-
SIMRAN GARG-0181MBA117
KASHISH MADAAN- 0181MBA086
 What is Industrial Disputes
Any Dispute or disagreementExactly ? and workers, employer
between employer
and employers ,worker and workers which is relating to employment in
the industry such as wages, Dearness allowances, promotion , discipline,
bonus and other social securities benefits .

Industrial disputes in industries should be reduced to minimum So that

there is no work stoppage.
 Settlement of disputes
between 1- Employer –
Workman
2- Employer - Employer
3- Workman - Workman
 Causes of Industrial
disputes
(A) Industrial Factors
(B) Managements Attitude towards workers
(C) Other Causes
Contd…
. Industrial Factors :-An industrial matter relating to employment,
work, wages, hours of work, privileges, the rights and obligations of
employees and employers.
An industrial matter in which both the parties are directly
and substantially interested.
Disputes arising out of unemployment, inflation.
Contd…..
Management Attitude Towards Labour :
(i)Management ‘s unwillingness to talk over any dispute with their employees.
(ii)Managements unwillingness to recognize a particular trade union ,
delegating enough authority to the representatives etc.
(iii) unwillingness to negotiation and settlement of disputes.
(iv) Managements unwillingness to provide services and benefits to its
employee's

Other Causes
(v)Affiliation of the trade unions with a political party, where the latter may
instigate
the trade unions to conduct strikes, lockouts etc.
 STRIKES
“A cessation of work by a body of persons employed in an industry acting in
combination; or a concerted refusal of any number of persons who are or have
been so employed to continue to work or to accept employment; or a refusal
under a common understanding of any number of such persons to continue to
work or to accept employement”

In simple words
Strike is a very powerful weapon to get its demands accepted by a trade union.
According to industrial dispute act, 1947, Strike means, “cessation of work by a
group of workers for the purpose of bringing pressures on their employers to
accept their demands”.
 In any industrial Endeavour co-operation of labour and capital is
quite essential for its success.

 A strike is a very powerful weapon used by trade unions and other

labour associations to get their demands accepted.

 It generally involves quitting of work by a group of workers for

the purpose of bringing n their employer so that their demands get
accepted.

 Right to strike is recognized as integral to collective bargaining

and is supported by social justice.
 REASONS FOR STRIKE

 Dissatisfaction with company policy

 Salary and Incentive problems
 Increment not upto the mark
 Hours of work and rest intervals
 Leaves with wages and holidays
 Bonus, profit sharing, provident fund and gratuity
 Dispute connected with minimum wages
 WHEN ARE STRIKES JUSTIFIED
 All strikes are not justified, and nor all strikes are unjustified. If the
strike was held by the workers in support of their reasonable, fair &
bonafide demands in peaceful manner, then the strike will be
justified.
 If it was held by using of violence or acts of sabotage or for any
ulterior purpose, then the strike will be unjustified.
JUSTIFIED STRIKES UNJUSTIFIED STRIKES
• When existing facilities • Strikes launched for political
withdrawn or benefits are answers
withdrawn
• Unfair Labour practice by
management • Demands are excessive and
• No response from management unreasonable.
in spite of referring a demand
ans issuing a reminder
Settlement of industrial
disputes
Arbitration
Arbitration

 Conciliation
Dispute
Settlement
Adjudication :- when the parties are not Conciliation
Resolving disputes so both the party Approaches
to govt. appoint the judge for the settlement of
industrial disputes so govt. Has Three sector:
1.Labour court 2.National Tribunal
Adjudication
3.Industrial tribunal
HERO HONDA CASUAL WORKERS
STRIKE
 Case study : HERO HONDA

 Hero Honda Motors Limited .

 Joint Venture 1983 :- The Hero Group of India and Honda of Japan
 It is world's biggest manufacturer of 2 wheeler vehicles.
 Dharuhera , Gurgaon and at Haridwar these plant are capable
of manufacturing 3.9 million bikes per year.
 capacity of these plant 6,000 units per day.
 There are about 1,200 permanent workers, while 4,000 are on
contract .
 CASE FACTS

 Place : Hero Honda Gurgaon Plant

 Strike Duration : 10 April 2006 - 14th April 2006
 No. of workers involved: 4000
 Casual workers Demands: Wage hike, extra casual leave and medical
benefits at par with the permanent workers.
 Financial Loss: Loss of ₹ 100 crore .
 BACKGROUND:
 Around 4000 contract workers of Hero Honda's Gurgaon Plant
(owned by Pawan Munjal ) were refuse regularization for the last 7 to 8
years.

 A Contractual Worker Average paid is ₹ 5000 P/M and ₹ 40,000 P/M ,

salary of a Permanent Worker performing the same job.

 Rs. 10 is deducted daily for food and tea only from the casual worker’s
salary.

 Contractual workers recruited not only get low wages but also do not
receive any pay slip or cards.
 The casual helper at the plant gets a meager ₹ 2000-
2500 at the end of the month.

 The management and the contractors are equally

involved in the exploitation of the contract worker
 ACTION TAKEN &SOLUTION:
 14th April 2006,A Tripartite meeting was held between
Haryana's Additional Labor Commissioner, Management and
Worker Representatives and they agreed for a settlement, under
which some demands were met.

 It was an important victory for the contract workers, who are

otherwise forced to live in miserable conditions.
 SOLUTION

The agreement included :

 30% hike in salary

 Two days of casual leave every month and
 Medical benefits in accordance with the company
rules,
 Issuing identity cards
 ATM cards
 Opening bank accounts for the casual workers
 EFFECT OF THE
Production at the plant,STRIKE
which makes about 6,000 bikes a
day at Gurgaon was paralyzed.

It lead to the loss of ₹ 100 crore to the company.

It severely impacted the industrial environment in the

state and hence it was a concern for all industry.
 SUGGESTIONS

 Issues between the management and workers should be resolved

beforehand.

 There should be a good communication link between the worker and

the management.

 Management should not suppress the rights of the worker.

 Y OU
A N K
T H