INDUSTRIAL DISPUTE

(TOYOTA)

SUBMITTED BY : ISHU SINGLA

MBA-II (SEC-C)
16421056
INDUSTRIAL DISPUTE ACT, 1947

 INDUSTRIAL DISPUTES ACT, 1947 As per

section 2 (k) of Industrial Disputes Act1947,
Industrial Dispute is defined as 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
employment or with the condition of labor of any
person.
WHAT IS INDUSTRIAL DISPUTE EXACTLY ?

 Any Dispute or disagreement between employer and workers,

employer and employers ,worker and workers which is relating
to employment in the industry such as wages, Dearness
allowances, promotion , discipline, bonus and other social
securities benefits . Industrial disputes in industries should be
reduced to minimum So that there is no work stoppage.
 Settlement of disputes between
 1- Employer – Workman
 2- Employer - Employer
 3- Workman - Workman
 Causes of Industrial disputes

 (A) Industrial Factors: -An industrial matter

relating to employment, work, wages, hours of
work, privileges, the rights and obligations of
employees and employers.
 (B) Managements Attitude towards workers
 (C) Other Causes
 SETTLEMENT OF DISPUTE

 Arbitration
 Conciliation
 Adjudication :- when the parties are not Resolving
disputes so both the party Approaches to govt.
appoint the judge for the settlement of industrial
disputes so govt. Has
 Three sectors
1.labour court
2.National Tribunal
3.Industrial tribunal
 CASE STUDY TOYOTA

 Toyota Kirloskar Motor Pvt. Ltd is a subsidiary of

Toyota Motor Corporation of Japan(with Kirloskar
Group as a minority owner), for the manufacture
and sales of Toyota cars in India.
 Type - Joint venture
 Founded - 6 October 1997
 Chairman - Mr. Naomi Ishii
 Headquarters- Bangalore, Karnataka
INDUSTRIAL RELATION PROBLEMS AT
TKM

 TKM had around 2358 employees as on Jan

2006, out of which around 1500 were members of
TKM Employees Union (TKMEU). TKM had a
history of unhealthy labor relation between the
management and labor right after few years of
inception of its Bidai plant.

 There were two strikes happened in 2001 and

one in 2002, which was followed by a lockout,
due to increased shift upto 12 hours.
 STRIKE DURING MAY 2005

 Employees demanded a hike in wages as there

was extension of working shifts.
 During the strike fifteen employees were
suspended and three were sacked from the job.
 The management showed the reason for
suspension as misconduct at the workplace and
attacking the supervisor.
 After rigorous clash between management and
the Employees the wages were raised by 15%
 STRIKE DURING JAN 2006

 As the case of three sacked employees remained unresolved the

other employees again revolted.
 It appeared as a flash strike.
 This made the strike illegal and the following events happened
during the strike.
 400 employees blocked the road
 They threatened to blow LPG cylinders inside the premises
 They obstructed the outward movement of manufactured vehicle.
 They stopped the production, which was again illegal
 They mishandled the other workers who were a not the part of
the strike
 FACTORS LED TO STRIKE

 Factors that led to strike

 Labour unrest at the workplace
 Worker’s unruly and rude behavior
 Senior Official’s strict behavior
 Worker’s indiscipline at workplace and consistent poor performance
 Increase of work shift to 12 hours from 8 hours
 No hike in wages were announced accordingly
 No bathroom breaks were given during the shift
 Dismissal of the workers on the ground of misbehavior
 External party (CITU) interference
 These issues evoked a strike.It was followed by a lockout citing safety concerns by
the management
 ROLE OF TRADE UNION

 Interference of CITU:- (CITU) was involved with the TKMEU for all the
activities, after TKMEU was affiliated to the CITU in 2005. This actually
aggravated the rift between the TKEMU and the management’s internal
decision. The management also challenged some of the employees for
taking part in unproductive and wrong works with CITU.
 Negotiation Process:- CITU state committee constantly supported the
TKMEU representatives. With this support, members of TKMEU put forward
some demands which were later modified a little and then fulfilled.
 End of CLASH:-After the clash between the management and TKMEU finally
came to an end, during January 2006, CITU stated that it would continue to
support TKMEU in the future and also fight with the management regarding
the order suspending the workers during the strike. On February 05, 2006
Union members started hunger strike and CITU also supported this. The
trade union has fulfilled its duty in the TKM case. It always stayed as a
support during various strikes to make the labor union’s voice reach the
management during the strike
NEGOTIATION & COLLECTIVE BARGAINING

 On Jan. 09, 2006 the representative of TKM,

TKMEU and CITU were asked to present before
DLC(Deputy Labor Commission), orderd by STATE
GOVERNMENT
 Result- . On 20th Jan. 2006, TKM’s management
lifted the locket
 SUGGESTIONS

Company should take the following actions to prevent such incidents in the future. They
may be listed as follows:
 As both strike and lockouts are illegal, it should be banned.
 A declaration stating the disciplinary rules and work ethics at workplace should be
taken from the workers before joining
 There should be a regular meeting happening between the Worker Union members
and management discussing various issues and grievances of the workers
 Employees could be called in different shifts, in order to avoid overtime of the
employees
 Overtime should not be made mandatory, it should be made volunteer.
 Overtime should be compensated optimally
 Proper break time, lunch time should be maintained
 If a lockout is prevailing for longer time, the company can outsource some of its
activities, if possible.