"We have requested the government to intervene in the matter immediately and prohibit the lockout

declared by the management which is illegal. The government should prosecute the management for
violating labour laws and issue immediate relief to the dismissed employees such as reinstatement
and payment of wages during the dismissed period."1

- Meenakshi Sundaram, General Secretary, Centre of Indian Trade Union, Bangalore, in

2006.

"How long can we put up with unruly behaviour? We would like to restore normalcy as soon as
possible, but at the same time, we would not like to compromise on discipline."2

- A R Shankar, General Manager, Corporate Planning Division, Toyota Kirloskar Motor

Private Limited, in 2006.

"There are another 11 people suspended by the management and we fear they may also be
dismissed. We are officially supposed to work for eight hours but we are overworked sometimes. And
we are treated in such a way, that we can't even take a bathroom break when we want."3

- R. Ravi, Union Joint Secretary, Toyota Kirloskar Motor Employees Unions, in 2006.

Industry analysts opined that the strike at TKM raised doubts about the success of the Japanese style
of management in the Indian context. They also recalled the July 25, 2005 incident at the
Gurgaon6 plant of Honda Motorcycle & Scooter India Private Limited (HMSI), a wholly-owned subsidiary
of Honda Motor Company Limited (HMCL)7, when there were violent protests from workers, disrupting
production at the plant (Refer to Exhibit I for the labor unrest at HMSI). These incidents served to
underline the fact that it was essential to ensure sound industrial relations for the smooth continuation
of operations and the safety of management, workers, and the plant of companies (Refer to Exhibit IIA
and IIB on statistics regarding the number of strikes during 2002-2006and lockouts and a list of
industrial disputes in 2005 in India).

Commenting on the growing incidents of discord between management and workers, Surinder
Kapur, Chairman of the Sona Group, an automotive component manufacturer, said, "This
incident has brought to light the need to look at labor laws afresh. We cannot have archaic labor
laws in a liberalized economy. Compare China and India not just on infrastructure but also on
labor laws. It is much more liberal there (despite the Communist regime).8 Liberal labor laws are
not about hire-and-fire at will but about more room for contract labor with a tenure of, say, three
years or so, and more temporary workers. If there is a feeling that minimum wages are low, the
government must work toward increasing them."9

TKM, a joint venture between Toyota and the Kirloskar Group , established its plant at Bidadi on
October 06, 1997, with an initial investment of Rs. 7 billion. Toyota held a 74 percent stake in the joint
venture while the remaining 26 percent stake was held by the Kirloskar Group. In 1999, Toyota
increased its stake to 89 percent...

Labor Relations at TKM

From the time it started production operations in

2000, TKM had had a history of disturbed
relations between the management and the
workers. Prior to the strike and lockout in January
2006, the plant had experienced three other
strikes: two in 2001, and a strike and a lockout in
2002 that lasted for almost two months. The first
strike at TKM began in April 2001, and it went on
for about two days. The second one was in June
the same year. In 2002, the company decided to
call the workers in two shifts to meet the
increased demand for the company's cars. The
first shift at TKM started at 8 AM and ended at 4
PM. The workers in this shift were asked to work
overtime for four hours between 4 PM and 8 PM...

The Dispute

On January 05, 2006, TKM's management dismissed three workers out of the fifteen that had been
suspended in February 2004. According to the management, the three workers, Prasanna, Sridhar
Dhote, and Satish, had been dismissed as the year-long investigations carried out by TKM had proved
that they were guilty of misconduct which included violent behavior, disruption of work, and assault on
a supervisor...

The Negotiations

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...

The Dispute Continues

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. However, the workers
reporting for duty were asked to sign an undertaking to maintain good conduct. Commenting on
the decision, Shankar said, "The management has decided to lift the lockout in response to the
request of several employees who have expressed willingness to resume work...

The Result

TKM did not face any major problems due to the strike of the workers and the lockout at its plant,
having ensured that the market supply was not affected by either. TKM had made appropriate
arrangements to meet the market demand for its cars in the event of the talks failing between the
management and the union...

Exhibits

Exhibit I: Labor Unrest at HMSI

Exhibit IIA: Number of Strikes and Lockouts in India (2002-06)
Exhibit IIB: Industrial Disputes in India (2005)
Exhibit III: Trade Unions in India
Exhibit IV: Employment Laws in India

Examples

Rates of wages
Ahmedabad textile mill wage dispute led the workers to go on strike in 1918.The aim was to
put economic pressure on employers and workers pledged not to return on work until their
demands were fulfilled.Mahatma Gandhi leaded this strike

On 30th of September Ford workers in Russia threatened to strike if management refuses to

increase wages by 30 percent and offer other concessions. The workers demands come as
the firm is planning to almost double production at its St. Petersburg plant, putting
additional pressure on its work force, the union official said. While Ford plans to add to its
workforce of 1,700, the production boost will nevertheless add pressure to workers who
already do overtime in the hope of a bigger paycheck. Most of the plant’s workers earn
between 10,000 rubles (350 US-Dollars) and 17,000 rubles (600 US-Dollars) per month. In
comparison, Ford workers in Brazil earn between 560 and 910 US-Dollars per month as well
as receiving 1 percent of the profit a plant makes. Recent discontent over terms and
conditions has led to a dramatic increase in union members, with membership rocketing to
more than 1,100 from just 112 in August.

On 30th of September Ford workers in Russia threatened to strike if management refuses to

increase wages by 30 percent and offer other concessions. The workers demands come as
the firm is planning to almost double production at its St. Petersburg plant, putting
additional pressure on its work force, the union official said. While Ford plans to add to its
workforce of 1,700, the production boost will nevertheless add pressure to workers who
already do overtime in the hope of a bigger paycheck. Most of the plant’s workers earn
between 10,000 rubles (350 US-Dollars) and 17,000 rubles (600 US-Dollars) per month. In
comparison, Ford workers in Brazil earn between 560 and 910 US-Dollars per month as well
as receiving 1 percent of the profit a plant makes. Recent discontent over terms and
conditions has led to a dramatic increase in union members, with membership rocketing to
more than 1,100 from just 112 in August.

Hours of labour
Buckingham and carnatic mills :-there was a solar eclipse lasting until noon on
November 1’1948.The madras labour union requested the mgt to suspend working
of morning shift and declare it a holiday.The mgt ultimately agreed to grant half-
day paid holiday to morning shift workers only,it being understood that afternoon
and night shift workers would work as usual.The noon shift workers who came to
work at 3.00pm however,demamded that they shuld also be paid holiday and on
mgt’s refusal to grant the demand,a large number of workers applied for leave.The
mgt rejected all of these leave application and exhorted workers to work.The
workmen,however, resume work until about 9 pm.

Trade unionism
Strike at Honda in gurgaon :-The month-long strike/lock-out at HMSI and the
police attack on the workers caused a big stir in India. This is mainly due to the
location of the strike: a modern factory of a multinational company in a developing
region which up to that point was not seen as prone to industrial disputes. The
conflict began in December 2004 after a manager allegedly hit a worker, who was
said to be engaged in organising a union within the plant. Another four workers
were sacked after they expressed their solidarity with their workmate. The official
justification for the dismissals was ”undisciplined behaviour in the factory”. The
whole situation came to boiling point when the management sacked another 57
workers and nearly all the workers in the factory reacted by going on strike in
June 2005. At the end of June 2005 the management replied by officially sacking
1,000 workers and locking out the strikers.

more at http://www.citehr.com/41134-strikes-lockouts.html#ixzz16NbNweDQ

About the Results of the Strike

In total the company lost about 1.2 Billion Rupees due to the strike. The media presented
the result of the strike as following: All dismissed workers are re-hired, under the condition
that they sign a so-called ‘good-conduct’ declaration promising to abstain from further
demands and strikes. The workers are granted a wage increase for the year, although we
couldn’t find any info on the exact amount. There is contradictory information on the
question of whether the days of the strike will be paid or not. Some sources say that all
strike days in May and June will be paid, others say that they won’t. The AITUC demands
the release of all workers still in custody and union recognition in the company.
The strike and the police attacks got huge public attention and caused diplomatic tension
between India and Japan. The Japanese ambassador told the media that the strike would
endanger future investment by Japanese companies.

Leave and absence

In Punjab national bank,one sabbarwal,a typist and secretary of Punjab national bank
employees union of delhi applied for 7 days leave.The mgt declined to grant him leave.Even
so sabbarwal absented him from duty.On resumption of duties,he was charge sheeted for
absence without leave.However,sabbarwal refused to accept the notice.The mgt therefore
sent it to him by registered post and,pending further enquiry,suspended him.The employee
union instructed employees to stick to their seats and to refuse to work until police
intervened and threatened arrest or until orders of discharge or suspension were served on
them.This was done by coemployees of sabbarwal.Meanwhile a crowd gathered outside
bank and some started shouting slogans in support of action of employees.The mgt
suspended 60 of aforesaid participating employees.This led to a near industry-wide strike in
delhi and state of UP.

more at http://www.citehr.com/41134-strikes-lockouts.html#ixzz16NbXFHib
Hi Aarti..
An Industrial Disputes means any dispute or difference between employers and and
employees... and it leads to strikes or lock-outs..

Strike means suspension or cessation of work by a group of employees employees in any

industry, Even partial stoppage of work also comes under strike..

there may be a lot of reasons for strikes or Lock-outs..

Some of these are-

Dissatisfaction with Company Policy

Salary Problems
Incentive Problems
Increment not up to the mark
Discharge or dismissal of workmen wrongfully
Withdrawal of any concession or privilege
Mode of payments
Hours of work and rest intervals
Leaves with wages and Holidays
Bonus, profit sharing, Provident fund and gratuity
Retrenchment of workmen and closure of establishment
Dispute connected with minimum wages

Workmen shall be entitled to wages for the period of strike, if it is found that the strike is
neither illegal nor unjustified. A strike is valid if it doesn't violate any provision of the law..

Hope these informations may help you to prepare the same at your end..

more at http://www.citehr.com/39954-information-causes-strikes.html#ixzz16NbmVVnV

Strike legal:

Jiten my opinion on this regard when your management is ready for a settlement why the
employees are not accepting ,Is that your factory is going to be closed permanently are
your shifting your factory from the present site to some where else.

First try to understand wat the employee need's & then only you can go for seetlement
process ,uintill & unless it wud be difficult to operate in day to day basis.

If the employee union approach the Labour office of your jurdiction then that might also
create a prbl'm.

Kindly have a dialogue with ur union leader's & try to resolve at ur best.
more at http://www.citehr.com/267131-when-strike-called-legal.html#ixzz16NcZf7G6

I am HR professional but labour law is my subject.

The phrase 'refusal by an employer to continue to employer any number of persons' in the
definition of lock out corresponds to the phrase 'cessation of work' or 'refusal to continue to
work or accept employment' occuring in the definition of this 'strike.' The phrase on which
you have tried to put emphasis to draw the conclusion that you can refuse to employ 'any'
number of person while continuing your rest of the business activity is infounded and is
wrong interpretation. This phrase in the definition of lock out has to be red with rest of
definition and also the word 'lock out' in totality these words. In Ferozdeen vs. State of
Bengal 1960 I LLJ 244 (249) SC and in Mohammad Samsudin vs. Sasamusa Sugar works
1956 I LLJ, SC has emphasized that these words have to given restricted meaning. The
word 'any' connotes unlimited but with the condition that it has to be inrespect of temporary
to other of business place or suspension of work on his premises.
Remember that lock out exists only when it is interms of complete suspension of business
activity in a particular business premises.
Illustrations :
1. The closure of palce the business for duration of three days which was in italiation to
certain acts of workman was held to be lock out (express news paper case) 1962 II LLJ 227
(SC)
2. Temporary suspension of work necessitated by lack of stock was held not to constitute
lock out. Anamallais Timber Trust Case 1952 II LLJ 604
3. Temporary stopage of work for lack of raw material was held not to be lock out. Praboo
Pandey vs. J.K. Jute mills. 1956 I LLJ 588
4. Closure of a section of an industry carried on by employer on account of trade reasons
was held not to be lock out and the closure of another section also as a result of the refusal
of the workman to work in sympathy for the workman of the former section was held not to
be a lock out. Industrial and General Engineering Co. vs. Their workman 1964 II LLJ 438
(Mys.)
Difference between lock out and lay off :
The concept of 'lock-out' is essentially differnt from the concept of 'lay-off' and so where
closure of business amounts to a 'lock-out under S. 2(l), it would be impossible to bring it
within the scope of 'lay-off' under S.2(kkk). The points of distinction between 'lay-off' and
'lock-out' may be broadly stated as follows:
1. 'Lay-off' generally occurs in continuous business, whereas 'lock-out' is closure of business
for the time-being.
2. In the case of 'lay-off' owning to the reasons specified in S. 2(kk), the employer is unable
to give employment to one or more workmen, whereas in the case of 'lock-out' the
employer deliberately closes the business and locks out the whole body of workmen for
reasons which have no relevance to the causes specified in S. 2 (kkk).
3. In the case of 'lay-off', the employer may be liable to pay compensation as provided by
Ss. 25C, 25D and 25E of the Act, but liability for compensation cannot be invoked in case of
'lock-out', as the liability of the employer in cases of 'lock-out would depend upon whether
the 'lock-out' was justified and legal or not.
4. The provisions applicable to the payment of 'lay-off' compensation cannot be applied to
cases of 'lock-out.'
5. 'Lock-out' is resorted to by the employer as a weapon of collective bargaining and also
ordinarily involves an element of malice or ill-will while 'lay-off' is actuated by the exigencies
of the business.
There are some resemblance also :
1. Both 'lay-off' and 'lock-out' are temporary nature and both arise out of and exist during
an emergency though the nature of emergencies in each case is different.
2. Both in 'lay-off' and 'lock-out', the relationship of employment is only suspended and is
not servered.
3. 'Lay-off' resorted to in contravention of the provisions of S.25-M is illegal and punishable
under S. 25Q, while 'lock-out' declared in contravention of the provisions of Ss. 10(3), 10A
(4A), 22 or 23 is illegal and punishable under S. 26 of I.D. Act.
Hope the issue is clear.

more at http://www.citehr.com/39279-lockout-under-industrial-disputes-act-1947-
a.html#ixzz16NdYdL4D

A dawn-to-dusk strike call to protest against a tribunal order on sharing of river waters brought work
at Bangalore’s IT companies, including outsourcing companies, to a halt Monday.

Last week the Cauvery Water Disputes Tribunal in Delhi ordered a resolution to a water-sharing
dispute between the states of Karnataka and Tamil Nadu. The order has angered the people of
Karnataka, who want a larger share of the water of the Cauvery River. Bangalore is the capital city of
Karnataka.

Most major IT companies in the city, including Indian subsidiaries of multinational IT companies,
have asked their staff to stay at home, expecting trouble and even violence from the protesters. Staff
at these companies will instead work on a Saturday to make up for the lost time.

The risk of trouble is highest when transporting staff to and from work. IT companies in Bangalore
transport a large number of staff each day to and from their offices.

Shutting down operations for a day does not impact software development work, said a spokesman
for outsourcing company iGATE Global Solutions. For customer-facing functions like remote
infrastructure management and business process outsourcing (BPO), the company has moved work
to other locations for the duration of the strike, or asked staff to arrive at the office early, he added.

Faced with frequent disruptions in Indian cities caused by unrest and natural factors like rains and
flooding, Indian outsourcing companies have spread across multiple locations, to enable work to be
moved quickly to another location if there is disruption at any location.
“We have business continuity processes in place to ensure that client work is not affected,” said a
spokeswoman for Infosys Technologies, India’s second-largest outsourcer.

BPO companies and call centers also moved work to other locations in the country, while some
others asked their staff to stay overnight in the office so that they could be there for shifts Monday.