LABOUR UNREST AT TOYOTA: THE DECISION DILEMMA

Toyota Motor Corporation (TMC), the worlds second largest automobile manufacturer, had entered into the Indian market in 1997 through a joint venture with Kirloskar Group. The new entity was called Kirloskar Motor Private Limited (TKM). TKM established its manufacturing facility at Bidadi near Bangalore in the Indian state of Karnataka. The case deals with the labour unrest in the Bidadi plant. The workers of the plant went on strike, which was followed by a lockout by the company. The conciliation process failed to resolve the dispute. Hence, the government, in order to maintain its investor-friendly image, prohibited the strike. On receiving the news, the company lifted the lockout, but placed the condition that workers resuming duty will have to sign a good conduct declaration. The declaration stated that the workers would, henceforth, maintain discipline in the plant and ensure full production. The union agreed to call off the strike, but declined to sign the declaration. The company, however, strictly mentioned that if the workers did not sign the declaration, they would not be allowed to enter the plant. According to the union representatives, if both the parties remained rigid on their stands, it would again lead to lockout. TKM management was in a dilemma over handling the situation. The case discusses in detail, the dispute between the TKM management and the workers union and the developments with respect to it. It will help the students to discuss on the possible ways of resolving the dispute by the management.

Honda shuts down Chinese plants due to workers strike

Honda has shut down production in all its four plants in China due to workers from a parts manufacturing unit going on strike. 1,850 workers making transmissions and engine parts at Honda Auto Parts Manufacturing Co in Foshan, Guangdong walked out, demanding for higher pay thats on par with staff from the main car plants. They want salary to be increased to between 2,000 Yuan ($293) and 2,500 Yuan, from the current 1,500 Yuan. As a result of this strike, Honda, Japans second-biggest carmaker, was forced to close two plants in Guangzhou, Guangdong province and factories in Guangzhou and Wuhan, Hubei

province. Honda, representatives from the disgruntled employees and government officials in Foshan are having talks to end the strike, and settle the issue, Honda has said. The parts factory started operating in 2007 and makes transmissions for the Accord, City, Odyssey and Fit models, according to the company. Honda plans to raise production capacity in China by 28% to 830,000 vehicles a year by the second half of 2012 from 650,000 and introduce two new models as car demand grows in the country. Honda sales in China accounted for 17% of its global sales last year. Its not known how many vehicles have been affected by this problem. China is experiencing a labour shortage thats shifting the natural bargaining power to workers, said Chang-Hee Lee, a Beijing-based industrial relations specialist at the International Labour Organization.