HRM / Organizational behaviour Case Study

Labour Unrest at Toyota: The Decision Dilemma

OR

Abstract:
Toyota Motor Corporation (TMC), the world’s 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.

Pedagogical Objectives:

• To discuss about the issues of labour unrest at Toyota’s Bidadi plant
• To discuss about the government’s intervention to resolve the dispute
• To discuss on the initiatives taken by Toyota Motor
• To debate on Toyota’s decision dilemma.

Keywords : Toyota Motor Corporation, Kirloskar Group, Toyota Kirloskar Motor, Strike, Lockout, Conciliation process, Misconduct, Disciplinary action, Suspension, HRM Case Study, Dismissal of labour, Labour court, Trade Union, Industrial dispute, Industrial peace and harmony

Contents:

• Toyota India
• The conflict
• The new turn
• Government intervention
• The decision dilemma
• Strike & lockout under the industrial dispute act, 1947