Industrial Relation & Labour Law
Case-Study
IR Problems at Toyota Kirloskar Motor Private Limited
On January 08, 2006, Toyota Motor Corporation's (Toyota) Indian joint venture company, Toyota Kirloskar
Motor Private Limited (TKM) declared a lockout at its plant in Bidadi, Karnataka. The lockout came after two days of agitation by the plant's employees against the dismissal of three workers by the management. The strike was the outcome of an incident that occurred in February 2004 when the management suspended 15 employees on the grounds of disrupting work and for unruly behavior. In 2006, TKM dismissed three of these fifteen employees after a year-long investigation and appraisal of their performance. The management stated that the three employees had been dismissed due to their indiscipline and poor performance.
In response to the company's decision, the employees belonging to the TKM Employees' Union (TKMEU) decided to go on strike.
They alleged that the three employees had been dismissed because they had been actively participating in the functioning of the TKMEU and demanded that they be reinstated. As of January 2006, TKM had 2,358 employees on its rolls at Bidadi. Of these, 1,550 workers were members of the TKMEU.
Rejecting their demands, TKM's management stated that workers once dismissed would not be taken back. The workers immediately went on strike. The management then declared a lockout stating concern for the safety of the plant and the workers as the reason. It also added that the lockout would continue for an indefinite period until the work atmosphere became peaceful.
You are required to make a report of 2500 words covering the following.
Q1. What are the factors that lead to strikes and lockouts at a factory and the impact of such happenings on the employees and the company?
Q2. What are the HR policies adopted by organizations to prevent labor unrest at the workplace?
Q3. Examine the role played by the top management in ensuring peaceful working environment.
IR Problems at Toyota Kirloskar Motor Private Limited
On January 08, 2006, Toyota Motor Corporation's (Toyota) Indian joint venture company, Toyota Kirloskar
Motor Private Limited (TKM) declared a lockout at its plant in Bidadi, Karnataka. The lockout came after two days of agitation by the plant's employees against the dismissal of three workers by the management. The strike was the outcome of an incident that occurred in February 2004 when the management suspended 15 employees on the grounds of disrupting work and for unruly behavior. In 2006, TKM dismissed three of these fifteen employees after a year-long investigation and appraisal of their performance. The management stated that the three employees had been dismissed due to their indiscipline and poor performance.
In response to the company's decision, the employees belonging to the TKM Employees' Union (TKMEU) decided to go on strike.
They alleged that the three employees had been dismissed because they had been actively participating in the functioning of the TKMEU and demanded that they be reinstated. As of January 2006, TKM had 2,358 employees on its rolls at Bidadi. Of these, 1,550 workers were members of the TKMEU.
Rejecting their demands, TKM's management stated that workers once dismissed would not be taken back. The workers immediately went on strike. The management then declared a lockout stating concern for the safety of the plant and the workers as the reason. It also added that the lockout would continue for an indefinite period until the work atmosphere became peaceful.
You are required to make a report of 2500 words covering the following.
Q1. What are the factors that lead to strikes and lockouts at a factory and the impact of such happenings on the employees and the company?
Q2. What are the HR policies adopted by organizations to prevent labor unrest at the workplace?
Q3. Examine the role played by the top management in ensuring peaceful working environment.