A Labor Unrest Case

Topics: Laborer, Investment, Machine Pages: 2 (864 words) Published: December 3, 2012
Labor unrest

X automobiles limited have one of its car making plant in yyyyy location. It is the oldest and strategically one of the most important unit. A stop in its functioning can lead to low supply in the markets against the demand for it. Recently the plant is facing problem because of some labour issues. The biggest problem is that the Management is not ready to recognize the union and as a result the union cannot get itself affiliated to any political party at the national level. The labourers were not happy and they have put their demands before as well and there have been talks between the labours and management two times in the previous 5 months but nothing concrete came out and as a result there is lot of resentment amongst the workers. The second problem is that the plant is very old and the layout is not changed since its inception and as a result still old technology is used for automobile manufacturing which is leading to slow production rate but the management is pressurizing the labour to increase the production efficiency and the output without having any change in plant layout and machinery. The workers are not happy as slow production was result of obsolete machinery and not their way of working. The company really needs to redesign its production facility to meet the production targets. This problem is also leading to high cost of production as the maintenance cost is really high. One more problem which the company was facing was the wage difference between the contract workers and the permanent workers. Both of them were made to do same work but the contract worker was given almost half of what a permanent worker was given. Contract workers are usually hired in order to fulfill the seasonal demand but this company had them for a long time and the company was saving money by keeping them rather than going for permanent workers. Due to this problem the contract workers along with some union activists got into some violent mood and they...
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