INDUSTRIAL RELATION LAW

 Labor Unrest – HMSI

Presented to: Dr. Neera Singh

Presented by: Vaishnavi & Sakshi
Presentation Flow
 Company Overview
 Case Introduction
 Cause of Conflict
 Issues Involved
 Blame Game
 Consequences of Strike
 Action Took by HMSI
 IR Climate
 HR & IR Issues
 Approaches
HMSI-Honda Motor & Scooter
India
Company Overview
 Honda Motorcycle And Scooter India Pvt Ltd is an unlisted
private company. Honda Motorcycle And Scooter India Pvt.
Ltd manufactures two wheelers
 Honda Motorcycle And Scooter India was incorporated on 22
March, 2001. The company has 10 directors and 1 reported
key management personnel.
 Products & Services: Motorcycle, Scooter, Super Bikes,
NAVI, Honda Shield, Honda Genuine Engine Oil, Honda
Genuine Parts
Category: Manufacture
Case Introduction
 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).
 The Cause of the Conflict

 The conflict began in December 2004 after a manager allegedly hit a worker, who was said to be
engaged in organizing a union within the plant

 The main demands placed were wage hike, job regularization, extra casual leave and medical
benefits at par with the permanent workers.

 Another four workers were sacked after they expressed their solidarity with their workmate. The
official justification for the dismissals was "undisciplined behavior 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.
ISSUES INVOLVED

 Management approach of non consideration to demand of

workers .
 Management considered workmen’s activity as indiscipline
and violent protests.
 Allegations of workmen on management like
- Unhealthy working conditions
- Low wages.
- Arbitrary management decisions
 The Blame Game

Management held the No indiscipline

workers responsible conducted said
for indiscipline and labourers infact mngt.
for slowing down Bring up these issues
production to prevent formation
of union.
Consequences of strike

Slowdown
in
production

Unofficial Loss of
lockout 1.2 billion
rupees
Consequences

Employee
s Creation
gheraoed of union
mgmt.
Images
 Action took by HMSI


1.HMSI agreed to take in

4 dismissed and 50 1. HMSI agreed to allow
1. Dismissed employees
suspended workers workers to retain the
will also be giving a
Labor Union, formation
2.workers agreed to ‘separate assurance letter’
of which was the bone of
resume duty from to the management, apart
contention and a major
Monday from the undertaking that
issue which led to the
3.and promised not to all the agitators would
confrontation with the
make any fresh demand sign before joining duty
management.
for a one-year period
IR Climate

Fairness
Union-
Management
Mutual regard

Supports for unions

Union Legitimacy
HR & IR Issues
 HR Issues  IR Issues
• Compensation • Employee relation
planning and issues
management • Unionisation
• Leave policy • Lockout
• Benefits and
allowances
• Working condition and
facilities
 APPROACHES TO
ADDRESS THE ISSUES