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PRESENTED BY :-

SHIRSHO DEY

HARSH YADAV

SHRAVAN PUROHIT

SUNIEL SRI

RAHUL AGARWAL

NAVEEN SHARMA

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Contents

Case overview

Theories applicable to the case

Case studyQ&A

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CASE OVERVIEW

On July 25, 2005, the management of the HondaMotorcycle & Scooter India (Private) Limited, (HMSI), a

wholly-owned subsidiary of Honda Motor Company

Limited (HMCL), encountered violent protests from

workers that disrupted production at their plant in

Gurgaon.

HMSI workers were severely beaten up by the police, and

newspapers and TV channels gave wide coverage to the

violence of the action. The protest followed six months ofsimmering labor unrest at the HMSI factory in which the

workers also resorted to job slowdown(since December

2004 when the workers' demand for an increase in wages

was rejected by the HMSI management).

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THEORIES CONNECTED TO THE ISSUES

AREAS SPECIFIC TOPICS

Labour Laws Industrial Disputes Act (Strikes, Lock-

outs, conciliation etc.)

Trade Union Act

Factories Act (Working Conditions)

Managing Employee Relations Principles of natural justice

Globalisation and Industrial Relations

Human Resource Management Collective Bargaining and Grievance

management.

Human Resource Planning Employment Decisions like Hiring etc.

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Grievance handling

Collective bargaining

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QUESTION : 1

In light of this case, discuss the issues

and challenges faced by organizations

witnessing labor unrest. How can labordisputes be resolved ?

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ISSUES INVOLVEDManagement approach of non consideration to

demand of workers .

Management considered workmens activity as

indiscipline and violent protests.

Allegations of workmen on management like

- Unhealthy working conditions

- Low wages.

- - Arbitrary management decisions

In total the company lost about 1.2 Billion Rupees due tothe strike.

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ALTERNATIVES OR APPROACHES TO ADDRESS THE

ISSUES

1. Set up of strong machinery for resolving disputes

through collective bargaining and grievance redressal

forum.

Address to working conditions issues.

Wage hike

To ensure employee participation

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ALTERNATIVES OR APPROACHES TO ADDRESS THE

ISSUES

2. Implementation of certain important and path-breakingrecommendations made by the National Commission on

Labor in the context of review of Labor law

It explains the bonus systems for the employees

I t recommends a three-tier system of Lok-Adalats, Labor

court and the Labor Relation Commission.

It will evolve policies and instruments to regulate employer -

employee relationships .

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ALTERNATIVES OR APPROACHES TO ADDRESS THE

ISSUES

3. A strong Indian management at the top to reduce thecultural differences between the Japanese and the Indians.

This will ensure healthy work environment.

Mission and Values of the organization can be effectively

communicated and easily understood.

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ALTERNATIVES OR APPROACHES TO ADDRESS THE

ISSUES

4. Board of enquiry should be set up.

This would check the validity of allegations of both the

workmen and the management.

This would also check under what conditions the terms of

agreement was signed and to what extent it was implemented

.

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QUESTION 2 :-

Critically analyze HMSIs decision to set up aplant outside of Haryana. Do you think the

company could benefit from such a move

considering that labor unrest is widespread

INDIA ?

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