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Strike Action

Strike action, often simply called a strike, is a work stoppage caused by the mass refusal
of employees to work. A strike usually takes place in response to employee grievances. Strikes
became important during the industrial revolution, when mass labour became important
in factories and mines. In most countries, they were quickly made illegal, as factory owners had
far more political power than workers. Most western countries partially legalized striking in the
late 19th or early 20th centuries.

Strikes are sometimes used to put pressure on governments to change policies. Occasionally,
strikes destabilise the rule of a particular political party. A notable example is the Gdańsk
Shipyard strike led by Lech Wałęsa. This strike was significant in the struggle for political
change in Poland, and was an important mobilised effort that contributed to the fall of the Iron
Curtain.

A rally of the trade union UNISON in Oxford during a strike on 28-03-2006.


Indian Employees Striking: Almost an everyday sight in India

Most strikes are undertaken by labor unions during collective bargaining. The object of


collective bargaining is to obtain a contract (an agreement between the union and the company)
which may include a no-strike clause which prevents strikes, or penalizes the union and/or the
workers if they walk out while the contract is in force. The strike is typically reserved as a threat
of last resort during negotiations between the company and the union, which may occur just
before, or immediately after, the contract expires.

Sometimes a union will strike rather than sign an agreement with a no-strike clause. Such an
action was documented in Harlan County,USA, a video about a United Mine Workers strike.

In some industrial unions, the no-strike clause is considered controversial.

Generally, strikes are rare: according to the News Media Guild, 98% of union contracts in the
United States are settled each year without a strike.

Categories of Strikes

When workers decide to strike without the sanction of a labor union, either because the union
refuses to endorse such a tactic, or because the workers concerned are not unionized. Such
strikes are often described as unofficial. Strikes without formal union authorization are also
known as wildcat strikes.

In many countries, wildcat strikes do not enjoy the same legal protections as recognized union
strikes, and may result in penalties for the union members who participate or their union. The
same often applies in the case of strikes conducted without an official ballot of the union
membership, as is required in some countries such as the United Kingdom.

A strike may consist of workers refusing to attend work or picketing outside the workplace to
prevent or dissuade people from working in their place or conducting business with their
employer. Less frequently workers may occupy the workplace, but refuse either to do their jobs
or to leave. This is known as a sit-down strike.

Another unconventional tactic is work-to-rule (also known as an Italian strike,


in Italian Sciopero bianco), in which workers perform their tasks exactly as they are required to
but no better. For example, workers might follow all safety regulations in such a way that it
impedes their productivity or they might refuse to work overtime. Such strikes may in some
cases be a form of "partial strike" or "slowdown".

During the development boom of the 1970s in Australia, the Green ban was developed by certain
more socially conscious unions. This is a form of strike action taken by a trade union or other
organised labour group for environmentalist or conservationist purposes. This developed from
the black ban, strike action taken against a particular job or employer in order to protect the
economic interests of the strikers.

Strikes may be specific to a particular workplace, employer, or unit within a workplace, or they
may encompass an entire industry, or every worker within a city or country. Strikes that involve
all workers, or a number of large and important groups of workers, in a particular community or
region are known as general strikes. Under some circumstances, strikes may take place in order
to put pressure on the State or other authorities or may be a response to unsafe conditions in the
workplace.

A sympathy strike is, in a way, a small scale version of a general strike in which one group of
workers refuses to cross a picket line established by another as a means of supporting the striking
workers. Sympathy strikes, once the norm in the construction industry in the United States, have
been made much more difficult to conduct due to decisions of the National Labor Relations
Board permitting employers to establish separate or "reserved" gates for particular trades,
making it an unlawful secondary boycott for a union to establish a picket line at any gate other
than the one reserved for the employer it is picketing. Sympathy strikes may be undertaken by a
union as an organization or by individual union members choosing not to cross a picket line.
A student strike has the students (sometimes supported by faculty) not attending schools. In
some cases, the strike is intended to draw media attention to the institution so that the grievances
that are causing the students to "strike" can be aired before the public; this usually damages the
institution's (or government's) public image. In other cases, especially in government-supported
institutions, the student strike can cause a budgetary imbalance and have actual economic
repercussions for the institution.

A hunger strike is a deliberate refusal to eat. Hunger strikes are often used in prisons as a form
of political protest. Like student strikes, a hunger strike aims to worsen the public image of the
target.

A "sickout", or (especially by uniformed police officers) "blue flu", is a type of strike action in
which the strikers call in sick. This is used in cases where laws prohibit certain employees from
declaring a strike. Police, firefighters, and air traffic controllers are among the groups commonly
barred from striking: usually by state and federal laws meant to ensure the safety and/or security
of the general public. Workers have sometimes circumvented these restrictions by falsely
claiming inability to work due to illness.
Industrial Disputes In India During The Year 2004

Details of major Industrial Disputes (i.e. Strikes and Lockouts involving a Time-loss of
50,000 or more mandays) during the year 2004

Name of
State/ Union
Territory/
No. of No. of
Sphere/ Strike / Wages Lost Production
Cause Workers Mandays
Sector/ Lockout (in Rs.) Loss (in Rs.)
involved Lost
Number of
Establishment
s Affected
1 2 3 4 5 6 7
CENTRAL
SPHERE
Andhra
Pradesh
One Unit Strike Wages & Allowances 64,573 64,573 2,32,46,280 3,33,90,000
(Public
Sector)

Bihar
Sta.Orders/Rules/Servic
One Unit Strike 71,477 71,477 2,50,16,950 3,75,25,425
e conditions / Safety
(Public
Sector)

Karnatka
Sta.Orders/Rules/Servic
One Unit Strike 62,810 62,810 1,47,93,000 ..
e conditions / Safety
(Public
Sector)

Maharashtra
51,21,64,80
One Unit Strike Wages & Allowances 8,19,130 8,19,130 ..
0
(Public
Sector)
West Bengal
Sta.Orders/Rules/Servic
One Unit Strike 1,06,151 1,06,151 5,95,47,694 4,49,98,450
e conditions / Safety
(Public
Sector)

STATE
SPHERE
Andhra
Pradesh
One Unit Lockout Bonus 2,553 68,931 1,10,37,951 4,21,20,000
(Private
Sector)
Strike
followe
One Unit Wages & Allowances 5,500 7,15,000 3,37,50,000 18,00,00,000
d by
Lockout
(Private
Sector)

Bihar
One Unit Lockout Wages & Allowances 750 75,000 .. ..
(Private
Sector)

Gujarat
One Unit Lockout Personnel 540 57,240 2,12,00,000 24,91,00,000
(Private
Sector)

Haryana
One Unit Strike Personnel 775 68,200 .. ..
(Private
Sector)

Kerala
One Unit Lockout Indiscipline 720 2,21,040 .. ..
(Private
Sector)

Maharashtra
One Unit Lockout Indiscipline 1,555 4,57,430 .. ..
(Private
Sector)

Manipur
One Unit Strike Personnel 1,077 51,696 31,01,760 ..
(Public
Sector)
Punjab
One Unit Strike Personnel 1,625 1,18,625 28,72,309 5,50,00,023
(Private
Sector)
One Unit Strike Indiscipline 2,116 1,35,424 2,03,54,000 84,32,66,000
(Private
Sector)

Rajasthan
One Unit Lockout Wages & Allowances 2,049 6,39,288 .. ..
(Private
Sector)
One Unit Lockout Wages & Allowances 400 1,24,800 .. ..
(Private
Sector)
One Unit Lockout Violence 1,200 3,74,400 .. ..
(Private
Sector)
Non-implementation or
in connection with
One Unit Lockout 250 78,000 .. ..
Labour Enactments,
awards / agreements
(Private
Sector)

Tamil Nadu
One Unit Strike Wages & Allowances 2,355 1,29,525 .. ..
(Private
Sector)
One Unit Strike Bonus 4,200 50,400 .. 79,38,500
(Private
Sector)

Uttar
Pradesh
One Unit Strike Indiscipline 430 53,750 .. 1,02,54,000
(Public
Sector)

West Bengal
One Unit Strike Not Known 490 1,11,720 .. ..
(Private
Sector)
One Unit Strike Not Known 2,02,801 14,19,607 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 192 58,752 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 1,250 3,82,500 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 203 62,118 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 1,180 1,65,200 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 600 61,200 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 640 1,95,840 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 600 1,83,600 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 1,000 3,06,000 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 1,450 4,43,700 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 6,000 18,36,000 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 428 1,30,968 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 1,250 3,82,500 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 900 2,75,400 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 550 1,68,300 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 1,100 3,36,600 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 3,000 4,08,000 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 2,000 1,22,000 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 3,500 10,71,000 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 3,600 2,48,400 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 4,000 60,000 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 4,000 4,72,000 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 4,200 3,48,600 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 3,500 6,02,000 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 2,600 1,01,400 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 3,500 6,65,000 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 179 54,774 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 1,300 3,04,200 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 3,700 8,58,400 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 8,500 6,03,500 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 210 64,260 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 350 1,07,100 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 400 1,22,400 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 300 91,800 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 400 1,22,400 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 250 76,500 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 500 1,53,000 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 600 1,39,200 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 180 55,080 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 250 76,500 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 303 92,718 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 1,000 3,06,000 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 475 1,45,350 .. ..
(Private
Sector)
One Unit Lockout Indiscipline 200 61,200 .. ..
(Private
Sector)
One Unit Lockout Bonus 220 67,320 .. ..
(Private
Sector)
One Unit Lockout Charter of Demands 4,000 68,000 .. ..
(Private
Sector)
One Unit Lockout Other Reasons 5,000 10,71,000 .. ..
(Private
Sector)
One Unit Lockout Other Reasons 4,500 1,80,000 .. ..
(Private
Sector)
One Unit Lockout Not Known 3,300 1,15,500 .. ..
(Private
Sector)
14,42,88 2,00,97,49 72,70,84,74 1,50,35,92,39
Total
7 7 4 8
Units 72 (11) (10)
Concluded
.. = Not
available
Note : Figures in brackets indicate the number of cases to which the relevant information relates

Data presented above indicates that strikes were rampant in the state of West Bengal, though
Kerala too has a reputation for the same situation nowadays is much more conducive for
businesses operating from the state.

Flash strike at Hyundai India plant

Infrastructure or the lack of it, has often been cited as the primary reason for India remaining a
developing country even with all the talent available in the world. There is no denying that fact,
but there are numerous other reasons which will hinder India’s growth even if the infrastructure
improves. One of the them being the mismanagement of Industrial Relations.

Hyundai after facing numerous strikes by its employees in the recent past has decided to stop its
production facilities in India and move it to Turkey. Including the recent one in Mumbai which
resulted in this decision, there have been as many as 4 strikes since 2008 at various Hyundai
facilities. Below is a study on the latest strike at Hyundai India.

On 7th June 2010, some of Hyundai's workers at Seriperumbudur plant went on a flash strike
demanding full reinstatement of 67 dismissed employees for gross misconduct leading to damage
of company property and violence against fellow workers, despite continuing conciliatory efforts
being made.

Reports say talks with striking workers continued on 9th June and that they are in a “minority”.

Around 170 striking employees were arrested on Tuesday after the Hyundai Motor India unit
called the strike "illegal".
Hyundai Motor, which is second largest maker of cars in India employing around 10,000
workers, reported a loss of about 2,200 cars and 650 million rupees a day during the strike.

The strike call was given by Hyundai Motor India Employees Union (HMIEU) over an
agreement last July on the issue of reinstatement of all sacked employees for misconduct. The
same union had called two strikes last year.

Hyundai’s factory at Chennai makes different variants of its popular Santro small cars, and i10
and i20 hatchback models as well as the Verna and Accent sedans.

The strike was called off on 9th June following an agreement between the company management
and the striking employees union.
The two parties signed a memorandum of understanding (MOU) in the presence of Tamil Nadu’s
Labour Minister T.M. Anbarasan and officials from Commissionerate of Labour.

The MOU contained the following:

 Provision for creating a six-member review committee with two representatives from the
union, company management and labour commissioner office will be constituted to
consider the reinstatement of 35 dismissed employees on a case by case basis. The
remaining 32 dismissed workers have to seek legal recourse

 In addition, the company decided not to proceed against the 280 workers who had been
remanded in custody 8th June at Vellore jail.

 Also agreed to confirm the 20 workers who were reinstated on nine month probation and
revoke the suspension of four workers
Hyundai then chose Turkey for its further expansions and export productions given the cost
advantages and lower taxes but employee unrest at its Indian facilities has been the triggering
factor.

The repercussions of this move by Hyundai are plenty

 Loss of Jobs: 
With the production moving away from India locations, thousands of jobs are going to be
lost.

 Revenue Loss: 
The government stands to lose revenues which it makes from levying taxes, export duty etc.

 Bad precedent for other foreign car manufacturers

Car makers around the world have noticed Hyundai’s success story from its Indian facilities and
how it has pioneered the small car production. With a bad example like this, newly arrived car
makers like Nissan and GM would think twice before rolling out their production facilities.

The union battles in India are not new and are in most cases backed by political muscle; hence
need to be tackled with deftness and finesse. Stated below are some key aspects to be focused on
to prevent disputes.

 Keep communications open. Always be willing to sit down with union representatives.

 Stay on as friendly terms as possible with shop stewards and union representatives. Invite
them out socially and pay attention to what they say. The stronger a relationship you
cultivate with them, the more likely it is that they won't fight you on smaller issues.

 Understand and clearly state management's position. Remember that bargaining in good
faith means keeping the lines of communication open - it does not, however, mean that
you have to give in to all of the union's demands.

 Point out the downside of striking to employees. Note that in most states they cannot
collect unemployment, nor will they have health coverage. In addition, striking workers
can be permanently replaced. Be careful, however, not to say anything that could be
perceived as a threat.

 The best way to prevent a strike is to make sure the work situation never becomes that
antagonistic in the first place. Cultivate shop stewards and front-line supervisors and get
wind of any brewing problems or growing dissatisfactions.
By adopting the above methods strikes can be handled well to avoid unfortunate and big bolts to
India’s attractiveness as a manufacturing hub or for that matter as industrial hub for foreign
investors.

References:

 http://africa.ibtimes.com/articles/27596/20100610/hyundai-strike-india.htm
 http://www.telegraphindia.com/1100610/jsp/business/story_12548634.jsp

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