INDUSTRIAL RELATION

GROUP
ASSIGNMENT
AUTOMOBILE INDUSTRY IN INDIA:
Today, vehicles are in great demand between all segments of society.
With to huge demand of vehicles, automobile industry is the fastest
growing industry all over the world. Automobile industries play a vital
role in economic development of any country.

Every week a new model of car or bike has been launching to

accomplish the requirement of buyers. Various automobile
manufacturing companies are in the market, which provide a lot of
vehicle according to the requirements of different segment of peoples.
Automobile companies are offering various products according to users
budget. Gone are the days, when one had to wait for their dream
vehicles. Today, it is not difficult to buy a dream vehicle because of
various financial institutions. Many banks are providing loan and
converting your dream into reality. Buyer needs to pay some extra
money as interest rate for that finance amount. This amount depends
on various factors such as buyer’s credit past, finance amount, loan
period and the term and conditions of financial institution.

If we consider the Indian automobile industry, there are various

companies, which are offering all type of vehicles in the market.
Automobile manufacturing companies are offering different cars, two
wheelers, three wheelers, commercial vehicles, sport vehicles and
other utility vehicles according to the user’s requirement. As we all
know, cars have become a need for today’s world. Automobile
companies are offering various premium cars to entry-level cars for
the customers. Tata Motors has been working hardly for producing low
budget car for Indian market. The Boom of Indian Automobile Industry
can be tracked by the stat, which proves the increment in car
production from 7,23,330 cars to 13,08,913 in last three years.

This huge development and consumption of vehicles encourage the

various companies to produce automotive parts and accessories for
these vehicles. There is a potential growth in Indian auto part market.

There are various car-manufacturing companies in Indian market.

Some giants in manufacturing of cars are Audi, Ford, Fiat, Honda,
Hyundai, Skoda, Maruti, BMW, Mercedes, Mahindra & Mahindra,
Hindustan Motors and General Motors. Some awaited car models,
which are about to launch in the year 2008 are Fiesta 1.4 SXi
Duratorq, Opel GT, Aveo U-VA, Getz Next Generation, Logan, Rhino
Rover, Audi Q7, Montero, Outlander, Grandis, Santa Fe and Roomster.
All the companies are offering various attractive models in different
color and designs. In two wheeler industries, Hero Honda, Bajaj Auto,
TVS Motors, Yamaha, Honda, Suzuki and kinetic motors are offering
various motorcycles, scooters and scooterettes to the market. One can
choose among the various models according to his need and budget.

Before buying any vehicle, one needs to ensure about the maintenance
of the vehicle. All the companies are providing servicing facility by
their own service centers. The user can visit the service center and
consult about the problem of vehicle with the experts. Remember that
proper maintenance can enhance the performance and life of your
vehicle.

The automotive sector is one of the core industries of the Indian

economy, whose prospect is reflective of the economic resilience of the
country. With 4% contribution to the GDP and nearly 5% of the total
industrial output, the automotive sector has become a significant
contributor to the exchequer.

One of the largest industries in India, automotive industry has been

witnessing impressive growth during the last two decades. Abolition of
licensing in 1991, permitting automatic approval and successive
liberalization of the sector over the years have led to overall
development of the automobile industry. The freeing of the industry
from restrictive environment, on the one hand, helped it to
restructure, absorb new technologies, align itself to global
developments and realize its potential and on the other hand, this has
significantly increased industry's contribution to overall industrial
growth in the country. The automobile industry witnessed a growth of
19.35 percent in April- July 2006 when compared to April- July 2005

Orissa holds huge potential in the automobile sector including the

automobile component sector owing to its raw material, cost and
manpower advantage. Orissa has following resources / infrastructures
to support Automobile manufacturing Units:

Material resource:

• Good quality pig iron / steel ingot

• Good quality pure aluminum ingot
• Steel flat products (plates, sheets HR / CR)
• Steel rounds.
• 1.5 million state-of-the-art automobile tyre manufacturing unit
Infrastructure resource:

• Central Tool Room Training Center (development of press tools,

forging tools, dies & moulds, precision in nature). In addition
training of highly skilled tool room personnel / technicians
• Central Institute for Plastic Engineering & Technology
(development of moulds for engineering plastics). In addition,
training of highly skilled personnel / technicians for industries
manufacturing engineering plastic goods
• Indian Institute for Foreman Training (training facility for
Foremen to manage engineering industries (for mass
production / unit production / assembly line)
• Adequate power availability in the State, to take care of power
intensive industrial activities like melting, pre-heating, heat
treatment etc
• The state produces more that 10,000 engg graduates, 5,000
diploma engineers every year, covering more than 25 branches
of engineering discipline

Investment Opportunities:

• Passenger Car Segment

• Two Wheeler Segment
• Heavy truck Segment

STRIKES AND LOCKOUTS IN

AUTOMOBILE INDUSTRY IN INDIA:

Mahindra & Mahindra: Strike at Nasik

plant
Date of commencement: 05 May 2009
Of strike

Date of end of the strike: 19 May 2009

Trade Union: Mahindra & Mahindra Workers’ Union.

 Mr. Chandrakant Achrekar, President

Mr. Sachinbhau Ahir, General Secretary

Nasik Plant’s Trade Union: Bhartiya Kamgar Sena Union that

represents Mahindra’s workers at its Igatpuri plant near Nashik.

Reason: Workers at the Nasik plant of Mahindra & Mahindra Ltd

have resorted to an ''illegal'' tools-down strike from 5 May in response
to a disciplinary action initiated against an office bearer of the
employee's union for alleged acts of indiscipline and the company’s
alleged delay in signing the salary agreement for the past 22 months.
Around 4,400 workers at the Nashik plant went on a tool down strike
following the suspension of their Union President Madhav Dhatrak.
M&M had said Dhatrak was suspended for threatening the Chief
Security Officer for discharging his duties. Xylo production was hit due
to Nashik labour strike. The workers on the other hand cited that the
management has delayed signing salary agreements for 22 months.
Mahindra & Mahindra (M&M) on May 13th 2009 appeared to Nashik
Industrial Court order who declared that the M&M workers working in
the complainant-company have resorted,commenced illegal and
unjustified strike.

The respondent-union workers were hereby directed to withdraw said

strike within 48 hours from said declaration. They are advised to
report for their work in their respective shifts at the earliest. The 15-
day-long-tool-down strike at Mahindra and Mahindra (M&M) Nashik
plant came to an end on May 19th 2009 and the production resumed
after the management and internal union came to terms with each
other amicably. Mahindra and Mahindra on May 15th 2009 signed a
Wage settlement agreement linked between Automotive Sector,
Mahindra & Mahindra Ltd. and Bhartiya Kamgar Sena Union, Igatpuri
plant, near Nashik, Maharashtra and reinstatement of a sacked labour
leader Madhav Dhatrak.

Ashok Leyland Ltd’s (ALL)- Hosur I

factory strike:
Date of commencement: Aug 23, 2005
Of strike
Date of end of the strike: Oct 24, 2005

Trade Union: Ashok Leyland Employees Union

Parent body: CITU (Centre of Indian Trade Unions)

Reason: ASHOK Leyland Ltd employees at Hosur plant-I went on

strike on Aug 23rd 2005 demanding an early settlement over wage
negotiations, productivity issues and over the triennial wage
settlement. The wage increase itself is negotiable, the discussions
have hit a road block on productivity issues and employee deployment.
Over 2,355 permanent workers are employed at this unit. At present,
workers at the Hosur unit earned between Rs 11,675 and Rs 13,263 a
month, depending on the seniority.

The plant produces over 175 Hino engines a day and 36 vehicles
including multi-axle vehicles and heavy goods vehicles. This was
higher than that agreed upon in the previous agreement in December
2003 , which provided for production of 90 engines and 36 vehicles a
day.

According to union sources, the management wanted to nearly double

engine production to about 300 without increasing the total number of
employees. It’s plan to redeploy some of the workers in various
service areas to the production jobs and increase contract jobs. Since
there had been no progress in discussions the workers struck work on
the morning of Aug 23rd 2005.

The two-month long strike at Ashok Leyland’s Hosur I factory came to

an end on Oct 25th 2005, with both sides union and the management
making compromises.
The deal made between the management and the union was that the
management agreed to raise the salary of the workmen at the Hosur I
facility by Rs 3,740 per month.

In return, the union has agreed to the management’s demands to

manufacture 300 engines per day. Before the strike the production
was around 180 engines per day.

Also the management had earlier sought redeployment of 300

employees from certain non-core sections like inlet manifold, exhaust
manifold etc to work in the production line, as the company wanted to
outsource those activities. After initial refusal, the union has agreed to
the redeployment of 225 employees.

Toyota Kirloskar Motors-Bidadi plant

strike and lockout

Date of commencement: January 06, 2006

Date of end: January 21,2006

Trade Union: Toyota Kirloskar Motors Employees' Union (TKMEU)

Parent body: CITU (Centre of Indian Trade Unions)

Union Leaders: S.R. Deepak, General Secretary

R. Ravi, Joint Secretary of the employees' union

Membership: 1,550

Reason : Employees of Toyota Kirloskar Motor Ltd (TKML) went on a

lightning strike on Friday afternoon Jan 06,2006,around 1,500
employees went on stike affecting production in the Bidadi plant near
Bangalore. The workers continued their stoppage of work till late
Saturday evening to protest the management's decision to dismiss
three of their colleagues found "guilty of gross misconduct following
independent inquiries." 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. Unruly incidents were
witnessed during the strike by employees of Toyota Kirloskar Motor
(TKM) at Bidadi plant on Jan 06 and Jan 07. The police stated that the
protesting employees allegedly smashed the close-circuit television
cameras at the factory and also hurled stones at passing vehicles. The
agitation continued till saturday. Presspersons who went to cover the
agitation on Saturday were also assaulted. S.R. Deepak, General
Secretary, TKM Employees' Union stated that the management had
violated the Section 33 of the Industrial Disputes Act. Meanwhile, TKM
had reinstated one employee and dismissed three who had been found
guilty of certain acts of serious misconduct, including assault on
supervisors, after holding an enquiry by "competent and independent
authority in accordance with the principles of natural justice” but some
employees had opposed the findings of the independent enquiries and
resorted to stoppage of work without prior notice of 14 days as per the
Industrial Disputes Act 1947 and struck work illegally. They also
prevented other employees forcibly from attending work. Meanwhile,
the Labour Department had initiated conciliation proceedings. TKM‘s
management presented the labor issue before V.N. Hittanagi
(Hittanagi), the Deputy Labor Commissioner (DLC) of Karnataka
(Region II). The management, however, maintained that it would not
go back on its decision on not reinstating the dismissed workers. On
January 09, 2006, the representatives of TKM, TKMEU, and the CITU
were asked to present their case before the office of the DLC at a
conciliatory meeting. On January 16,2006 management-trade union
reconciliation meeting facilitated by the Karnataka Labour
Commissioner to end the lockout at the Toyota Kirloskar plant at
Bidadi, near Bangalore, ended in a stalemate, forcing the labour
department to refer the issue to the state government.
The meeting of the management of Toyota Kirloskar Motors Ltd (TKM)
and the trade union, Toyota Kirloskar Motors Employees Union
(TKMEU) failed after the management refused to accept suggestions of
the labour department — based on demands of the union.
The labour department had suggested that the dismissal order of three
employees be kept in abeyance. The union’s parent body CITU’s state
secretary V. G. K. Nair assured the labour department that it would
not resort to unlawful activities in the company. On January 20, 2006,
in a sudden turnaround, TKM‘s management announced in the
local newspapers that it would lift the lockout. In an advertisement, it
said that it was happy to announce that the lockout would be lifted
from January 21, 2006 onward. Production at the Bidadi plant of
Toyota Kirloskar Motor (TKM) Private Limited resumed on Jan 21,2006
after the management lifted the 14-day lockout that was declared on
January 8 following workers' strike protesting the management's
decision to dismiss three employees on disciplinary grounds.
MRF Limited- Arakkonam factory
strike and Lockout
Date of commencement: May 02, 2009
Of strike

Date of end of the strike: September 14, 2009

No. of days on strike: 125 days

Trade Union: MRF United Workers’ Union

Reason: Workers at MRF Arakkonam factory went on sit-in strike on

May 02, 2009. Later the workers at Puducherry factory also went on
sit-in strike.
Production at tyre giant MRF's factories at Arakkonam and at
Puducherry, was hit following the sit-in strike by around 3,000
workers. Workers at the 13-year-old plant continued to be on
probation or training and are paid daily wages. The pay average was
Rs 4,000-5,000 a month and the workers were demanding wage scales
on a par with those at the Chennai plant, where the salary is around
Rs 19,000. Workers in both plants have decided to boycott the coming
Lok Sabha elections in the state, which was on polls on May 13. Union
representatives said they have over 70,000 votes at Arakkonam and
Pondicherry. They said they would not support any political party since
none of them came forward to help them.
The union demanded reinstatement of workers who were dismissed
following unionisation, recognising the union and that the company
should come forward to discuss about the wage revision with MUWU
instead of the other union – MRF Arakkonam Worker Welfare Union
(MAWWU), which is claimed to be a pro-management union. The
management declared a lockout on May 18th at the Arakkonam plant
with effect on account of labour unrest in the factory. Later on May
27, 2009 MRF Ltd lifted the lockout at its Arakkonam manufacturing
unit.

The MRF United Workers Union, which is the sole representative of the
majority of the workers, said that the primary issue that sparked the
labour unrest was to get the management recognition for the union .
The union’s Honorary President and advocate, Mr V. Prakash, said that
the union would soon formally announce a strike. Of the total
unionised cadre of nearly 1,500 workers at the factory, over 1,150
were with the MRF United Workers Union and committed to the fight
for recognition and the right to discuss wage negotiations.

Hyundai India – strike at

Sriperumbudur plant

Date of commencement : Apr 20, 2009

Of strike

Date of end: May 07, 2009

Of strike

Trade Union: Hyundai Motor India Employee’s Union(HMIEU)

Parent body: CITU (Centre of Indian Trade Unions)
Union Leaders: CITU SENIOR LEADER, A. SOUNDARARAJAN
headed the strike.

Reason: Workers at Hyundai Motor India Limited (HMIL) have taken

strike action in protest of gross trade union rights violations and the
company's refusal to enter collective bargaining with the union. More
than 1300 workers went on indefinite strike in Hyundai Motor India
Limited (HMIL), located in Chennai, India, refused to negotiate
contract demands with the Hyundai Motor India Employees' Union
(HMIEU).

The company has taken a firm position that it will not negotiate with
HMIEU, the sole registered union at the plant, and instead is pressing
to enter into agreement with a company-appointed Works Committee.
Workers downed tools after three rounds of mediation by the Deputy
Labour Commissioner (DLC), during which HMIL expressed its refusal
to negotiate with the union, failed to bring results.
Hyundai Motor India, which employs some 3000 precarious workers,
has a history of rights abuses in the plant. The company recently
terminated the contracts of some 600 workers, some who had worked
at the plant for almost 4 years, just prior to them receiving permanent
status.

Currently 65 workers have been fired for their union activities and 34
more are in the process of being dismissed.

Approximately 1200 permanent workers, out of a total of 1500

permanent employees, and a large number of precarious workers are
supporting the strike.

Among the contract demands, workers are calling for:

* Union recognition and a collective bargaining agreement;

* Equal treatment of all workers;
* Reinstatement of all precarious workers fired as a result of the
company's response to the economic crisis or those fired in an effort to
deny them permanent status;
* Reinstatement of union members and officers unfairly fired,
transferred or suspended and the withdrawal of all charges pending
against them.

Strike ends on: 7th May 2009

The ongoing strike by a section of permanent workers at Hyundai

Motor India (HIML) called off on may 7th 2009. The union was also
prevailed upon to buy peace with the management by the ruling DMK’s
union, Labour Progressive Federation ( LPF) led by party’s North
Chennai MP, C Kuppusamy. He took the initiative for continuing the
conciliatory talks between the parties before the Labour Commissioner.
Labour commissioner gave the workers and management some advice
to resolve the labour unrest. LPF General Secretary, M Shanmugam
appealed to the workers and CITU leadership to call off the strike. He
explained to them that the Government is not in a position to
intervene on the issue in view of the Lok Sabha elections and the
operation of code of conduct. Mr Soundararajan added that the
management will not sign any wage settlement agreement with the
Worker’s Committee, a body which is currently representing the
workers till the 20th of May. The Worker’s committee demanded that
section 10B of Industrial Disputes (TN Amendment) Act but the
government said it is not applicable when the code of conduct is on.
However this act would be invoked if the management does not accept
the demands of the unions. Mr Soundararajan had assured the
workers that in the event of management not accepting the demands
of the unions, LPF will take up with the Government for invoking
section 10B (Section 10B provides for referring a dispute for
adjudication by a tribunal. In the meantime, it provides for giving an
interim relief to the workmen)

Union Gains as Hyundai India Strike Ends

Among the gains the strike achieved, Hyundai Motor India agreed
to:

* allow workers arrested during participation in the strike to return

to work,
* not enter a settlement with the Works Committee before May 20,

* reply to each point of the Charter of Demands put forward by the

HMIEU, and
* not victimize workers who participated in the strike, including
withdrawing disciplinary suspension of 20 workers who had been
involved in organizing the strike.

HMIEU and the company will enter into bargaining under the
auspices of the District Commissioner of Labor as soon as the May
13 elections are over.

Hyundai Motor raises wages of factory workers:

On July 23 in Chennai Hyundai Motor India announced 21-24 percent

wage hike for workers at its plant near here. The three-year wage
agreement is effective from April 1. It will benefit all permanent
workers at the factory, numbering over 1,600.The company claims
Hyundai Motors workers are the highest paid in the Indian
automobile sector.
STRIKE 2:
Date of commencement : July 23, 2009

Of strike

Date of end: July 28, 2009

Of strike

Reason: The management violated the direction given by the labour

commissioner that no wage agreement should be entered with the
Worker’s Committee. The workers went on a sit-in strike against a
wage agreement signed between the management and the Workers’
Committee. Production was hit at Hyundai plant as workers strike, the
plants were still working, but nearly 20 percent of the output had was
affected. Though the new plant continued to roll out around 900 cars
per day.

They are also striking for the question of the rights and culture as they
didn’t celebrate ayudha pooja. The management tried to defeat the
strike using different methods like the management closed the canteen
and cut the water supplies, Family members of the workers being
threatened by rowdy elements.

Collective bargaining process: from july 25, 2009

On July 25, 2009

Talks between the striking workers and management of Hyundai Motor

India At the conciliation meeting the company officials maintained a
standard line - that they have to consult the top management.

On July 26, 2009

Six workers at Hyundai Motor India fainted and had to be hospitalised

when they were on a sit-in strike for the fourth day.

On July 27th, 2009

Discussions between the management and the union and officials of
labour department, like the state labour minister and the department
officials the management and union came to a solution to end the
strike.

Strike 2 ends on July 28, 2009

The six-day workers’ strike at the Hyundai Motor plant came to an end
following an agreement between employees and the company
management. The agreement was signed in the presence of Labour
Minister T.M. Anbarasan at the state secretariat. The agreement
between the union representatives and the management signed
agreed to bring back the nine transferred workers. The management
agreed to pay all workers wages as per its agreement with the
Workers’ Committee.

Hero Honda Motors Ltd- Strike at Gurgaon plant

Date of commencement: April 10,2006

Of strike

Date of end: April 15, 2006

Of strike

Parent Body: All india trade union congress(AITUC)

Union Leaders: Devender Pradhan , union leader

Gurudas Gupta, union leader

D.L.Sachdev,national secretary,AITUC

Membership: 2000
Reason: The workers at Hero Honda Motors Ltd's Gurgaon plant
entered a flash strike on April 12th, 2006. The workers went on strike
because, though there was negotiations over salaries and other
benefits, there were no assurances on the issue of contract workers
being made permanent employees. Some 2,000 contract workers went
on strike at the plant as a result of which there was no production. The
left parties took note of the issue with senior members of the All-India
Trade Union Congress (AITUC). Mr D.L. Sachdev, National Secretary,
AITUC was supporting the workers, who are being exploited. They
were considering absorbing some of the employees on payroll based
on qualification, skill level, stability and requirement. The flash strike
was called off peacefully and unilaterally by the striking contract
workers. The contractors have agreed to address some of the genuine
grievances of the contract workers. Thus the 5 day strike came to an
end peacefully on 15th April 2006.

Hero Honda Motors Ltd- Lockout at Gurgaon

plant
Date of Lockout: September 25, 2009

Reason: On 25 July 2005, the Honda Motorcycle & Scooter India

Private Limited (HMSI) workers, the Haryana government, its police
force and auto industrialists in Gurgaon were all back in action to the
regular harassments like lockouts, suspension, termination and lathi
charge, they detained Gurudas Dasgupta, the general secretary of All
India Trade Union Congress (AITUC). Workers’ attempts to form
unions have become the main reason for the management’s acrimony.
The major demand of the workers has always been for their right to
organize inspite of poor pay package and the management cannot take
refuge in arguing that workers are raising unreasonable demands. The
workers felt the need for unionization when the company, threw out
large numbers of workers without prior information or economic
benefits, On August 4, 2009, the union submitted their application to
the labour department, Chandigarh, for its formal recognition. On 21
September 2009, those who came to work the management forced
them to sit outside the gate of the factory. Since the company said it
was on lockout from 21st Sep 2009. According to the workers, the
retaliation of lockout was chosen by the management only because the
workers had formed a union and applied for registration. Gurudas
Dasgupta and D.L .Sachdeva, were arrested and workers submitted
memorandum and the leaders were released.