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ABSTRACT OF HERO HONDA IR ISSUES (2005-2009)

Issues started taking shape way back in 2003- Due to globalization there was a need to change IR framework. Hence HMSI came up with hard and soft model of HRM to which unions opposed. There was strategic shift in management approaches to manage IR thus problems began. 2005- This problem become more crucial when workers were mercilessly beaten by police when they were on strike in GURGAON.

2006- Higher compensation demand became the issue, which was supported by AITUC on 12TH April 2006. With their support that problem was resolved and contract was signed by both management and workers for three years. 2007- In this year, though the problem with wages resolved but other issues prevailed.

2008- Issue emerged in DHARUHERA plant when company went through the production loss after they decided to launch new variants in festive season. Three main reasons behind this were: - Wage increment, Recognition of separate union and Absorbing additional casual labors. 2009- Problem from suppliers affected their production as a result Honda threatened them that they will leave the country. The demand among workers were renewal of the long term wage contract which was signed by them in 2006 and reinstatement of suspended workers.

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