Labor Unrest at Honda Motorcycle & Scooter India (Private) Limited

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : HROB104 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Human Resources & Industrial Relations/ Labor Unrest/ Collective Bargaining
Case Length : 15 Pages
Period : 2004-2005
Pub Date : 2008
Teaching Note : Available
Organization : Honda Motorcycle & Scooter India (Private) Ltd.
Industry : Automobile
Countries : India


The case study focuses on the HR problems faced by Honda Motor Cycle & Scooters India (HMSI). The case discusses the various reasons which led to the dispute between the management and employees of HMSI. It elaborates the incidents, which led to the strike at the company that resulted in HMSI workers being severely beaten up by the police. Labor strife and the management's inability to deal with it effectively had resulted in huge losses for the company due to the fall in the production level at the plant. In addition to this, the company also received a lot of negative publicity as newspapers and TV channels gave wide coverage to the violence of the action.

The case highlights the growing number of instances of clashes between the employees and the management of companies in India, which is often guided by external parties such as trade unions and political parties.


Understand the factors that lead to labor unrest at a factory and the impact of such incidents on the employees and the company.

Study HR policies adopted by organizations to prevent labor unrest at the workplace.

Examine top management's role in maintaining a peaceful working environment.

Analyze the role of external parties such as trade unions; political parties etc., in disturbing the working environment in a company


  Page No.
Introduction 1
Background Note 2
Labor Unrest at HMSI 5
The Blame Game 6
Violation of Laws? 6
The Aftermath 8
Could this Ugly Situation have been Averted? 10
Exhibits 13

Key Words:

Labor unrest, Strike, Collective bargaining, Industrial relations, Industrial dispute, labor laws, Japanese management, Go-slow, Lock-out, Labor relations, Trade union, Root cause analysis, Fair wages, Workers' compensation, Honda

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