SHRAVAN PUROHIT
SUNIEL SRI RAHUL AGARWAL NAVEEN SHARMA
Contents
Case overview Theories applicable to the case Case study Q&A
CASE OVERVIEW
On July 25, 2005, the management of the Honda Motorcycle & Scooter India (Private) Limited, (HMSI), a wholly-owned subsidiary of Honda Motor Company Limited (HMCL), encountered violent protests from workers that disrupted production at their plant in Gurgaon. HMSI workers were severely beaten up by the police, and newspapers and TV channels gave wide coverage to the violence of the action. The protest followed six months of simmering labor unrest at the HMSI factory in which the workers also resorted to job slowdown (since December 2004 when the workers' demand for an increase in wages was rejected by the HMSI management).
Grievance handling
Collective bargaining
QUESTION : 1
In light of this case, discuss the issues and challenges faced by organizations witnessing labor unrest. How can labor disputes be resolved ?
ISSUES INVOLVED
Management approach of non consideration to demand of workers .
Wage hike
To ensure employee participation
Mission and Values of the organization can be effectively communicated and easily understood.
This would check the validity of allegations of both the workmen and the management.
This would also check under what conditions the terms of agreement was signed and to what extent it was implemented .
ALTERNATIVES OR APPROACHES TO ADDRESS THE ISSUES 5. Proper channels of communication to be set up by the management .
Improve the trust factor and transparency between the management and the workmen.
It shall reduce the levels of hierarchy between the workmen and the management.
QUESTION 2 :Critically analyze HMSIs decision to set up a plant outside of Haryana. Do you think the company could benefit from such a move considering that labor unrest is widespread INDIA ?