Industrial Dispute

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We would like to acknowledge the advice and guidance Ms. Preeti Bajaj, our lecturer of “Human Resource Management”, for her encouragement and patience throughout the duration of this project.

Table of contents

Topics page no.

Introduction 1 An industrial dispute 2 Causes of industrial dispute 2-3 Procedures for settling industrial disputes 4-6 History of Honda Company 7-8 Products & technology of Honda 9-10 Case study of Honda 11-13 Suggestions for improvement in legislation 13-14

Conclusion 15

Bibliography 16


Are the labour unions back? The riot that followed the labour management dispute in Gurgaon over the Honda Motorcycle and Scooter India spat could be the first major sign of things to come. After a decade-and-a-half of market friendly policy changes, the union seems to be sticking their neck out again to ensure they are being heard. Some says the left parties in power are the force behind this resurgence, the central unions disagree. They see the UPA government in the Center as a major conducive environment for their woes to be heard. For now, the battleground has been cleared and the soldiers are back home. A peace pipe is being passed around and the warring factions appear momentarily happy to take a drag as they put behind them the images of mayhem that hit the industrially flourishing Gurgaon-Manesar region in Haryana. But behind the wall of silence, tremors can still be felt. The question on everyone's mind is how to ensure that what happened on Black Monday in Gurgaon does not happen again. Research has revealed that labour strikes globally hit once in eight to 10 years. That period is now nearing. "The Honda incident should be taken as early warnings of a big wave of labour militancy in the future." The All India Trade Union Congress (AITUC), which has just claimed a conquest by bringing Honda Motorcycle & Scooter India's workers' union into its fold, has now trained its guns on Maruti Udyog Ltd.


Industrial peace in a country is an important pre-condition for its industrial development. The relations between the employers and the employees are frequently clouded by a sense of exploitation, distrust and discontent. They give rise to industrial conflicts or disputes. Perhaps industrial dispute is the most acute problem in industrial organizations because it endangers peace in the industry. 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”.


Since the 1987 democratic declaration, industrial disputes had continued to decrease until the nation’s economy was hit by the financial crisis in 1998, when the number of industrial disputes started to increase.

Main reasons for industrial disputes are industrial conflicts over wages, employment security, and conclusion of collective agreements. On the other hand, industrial conflicts over the system of industry level bargaining have increased as industry-level unions have increased since 2001, which has raised the proportion of strikes by industry-level unions in the total industrial disputes.

As in the end of September 2003,...
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