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Hence the government in order to maintain its investor-friendly image.the workers of the plant went on strike. the world’s 2nd.The conciliation process failed to resolve the dispute. The case deals with the labour unrest in Bidadi plant . On January 8. TKM established its manufacturing facility at Bidadi near Bangalore in the Indian state of Karnataka.INTRODUCTION Toyota Motor Corporation. prohibited the strike .largest automobile manufacturer.which was followed by a lock-out of the company. had entered into the Indian Market in 1997 through a joint venture with Kirloskar Group.2006 . The new entity was called Kirloskar Motor Private Limited (TKM).
• The union agreed to call off the strike . According to the union representatives.but declined to sign the declaration. if both the parties remained rigid on their stands it would again lead to lock-out.• On receiving the news.the company lifted the lock-out. • The declaration stated that the workers would henceforth maintain discipline in the plant and ensure full production. they would not be allowed to enter the plant.TKM management was in a dilemma over handling the situation.but placed a condition that workers resuming duty will have to sign a good conduct declaration. • The company however strictly mentioned that if the workers did not sign the declaration. . the dispute between TKM management and the workers union and the development with respect to it. • The case discusses in detail.
• 1st Strike-April 2001.went on for 2 days • 2nd Strike-June 2001 • 3rd Strike-January 2002. • 1st shift:8 a.m-4 p.m-8 a.m-4 a.followed by a lock-out(both went for 53 days) • In 2002 the company decided to call the workers in 2 shifts to meet the increased workers demand for the company.shift:8 p.5 minutes. . TKM’S plant was supposed to one vehicle in every 4.m TKM wanted its workers to conform to Toyota Production System(TPS) In TPS the JIT is followed to respond to the changing demand.LABOUR RELATIONS AT TKM • Prior to strike and lockout in January 2006.m and 4 a.m -8 p.m • • • • Workers were asked for overtime between 4 p.m • 2nd. the plant has experienced 3 other strikes. Based on Toyota’s standard.
the employees went on strike and TKM had to declare alock-out(went for 53 days) . • Management of TKM dismissed 2 office bearers of TKMEU on the ground of bad performance as per Toyota’s global human resource policy. • Toyota also assigned master trainers from these plants to the Indian plant to ensure 100% implementation of TPS. • Workers of TKM demanded them to allow them form a trade union.• TKM send its employees to Toyota plants located in Japan . • 75% of TKM workers aged between 20-25 years refused to work overtime despite it being mandatory by the management. but opposed by the TKM management. • Workers however decided to go ahead and TKMEU was born.Indonesia and Thailand to attend training. • January 2002:Protesting against the shift system and dismissal of the workers.
to avoid another row with workers. • 2005-TKMEU was affiliated to CITU . • TKM finally recognized only TKMEU but not its affiliation to CITU. • The matter of dismissal of workers was still pending before the industrial tribunal of 2006.The rift between TKM’S management and workers intensified.• Company changed the shift system and hike salaries. • The management agreed to hike salaries by 15%. . • February 2004:The TKM management suspended 15 workers.
• TKMEU’S STATEMENT: • • • • • The workers began their strike on January 6. 3 workers were forced to work. • No proper and fair investigation conducted by management to before dismissal of 3 workers. Management failed to provide safety equipment to protect workers against pain and dust. Workers suffered from spinal cord problems and respiratory problems. • Reasons-They had been guilty of misconduct which include violent behaviour.THE DISPUTE • On 5th Jan 2006-3 workers dismissed out of 15 that had been suspended in February. disruption of work and assault on a supervisor. Heavy workload and unfavourable working conditions.2006. .
• • • • 15 workers who had been suspended includes: 2 office bearers. • Reasons for suspension • Not participating in 5 mins. 4 executive committee members. . Remaining 9 were active members of union. • Wages were cut if they talk to their co-workers.warm up exercises before work.
Well established safety and health guidelines. Complete job security. Safety committee once a month to review and take corrective measures in case there were any accidents and injuries. Jobs at plant had been well analyzed.TKMEU’S MANAGEMENT STATEMENT • • • • • Described TKMEU’S allegations as baseless. .
THE NEGOTIATIONS • On Jan.2006. .representatives of TKM and TKMEU were asked to present their case before the office of the Deputy Labor Commissioner at the conciliatory.2006. • TKM representatives were not present. • DLC decided to call for a meeting on January 12.9. • Reason-Workers were protesting and raising slogans against the management in front of the DLC office.
• The workers should withdraw the strike in order to maintain a peaceful work atmosphere. .• The dismissal order for 3 employees should be kept in abeyance until the industrial tribunal gave its judgement. • The lock-out should be lifted. • No disciplinary action should be taken against the protesting workers.
• TKM also pointed out that the advertisement did not contain any statement about whether the management had accepted their demand for keeping the dismissal of 3 employees in abeyance.TKM’S management announced the local newspaper that it would lift the lock-out.2006. .THE DISPUTE CONTINUES • On January 20. • The management announced that the lockout would be lifted from January 21.2006 onwards.
• On January 22.2006 local newspaper reported that about 60 workers resumed work on the first of the lockout being lifted.• On January 21. .the government of Karnataka banned the strike by TKM workers and referred the matter to the third adittional labour court. • On January 23.2006 after a union meeting.2006 . the TKMEU announced that it was withdrawing its strike which declared that they will not tender any good conduct under taking as insisted by the management.
The union sought removal of the lockout clause from the undertaking. • On January 24. which stated that the strike is illegal and that the management would take disciplinary action in case of the occurrence of such incident in future. TKM’S workers and management entered into talks. • The management accepted the proposal made by the union and decided to remove the clause.2006.• The management said that it wanted the workers that they did not indulge in destructive activities. .
• The production was carried by those employees who are not part of trade union. • Analyst opined that the world would lead to a loss. .THE RESULT • TKM did not face any major problem due to the strike of the workers and lockout at its plant. • Analyst felt that the growing political disturbances in the state were affecting industry and society.