LABOUR UNREST AT TOYOTA: THE DECISION DILEMMA

Presented By: Pallav TyagiPavinder yadavAnkur chaudharyPrakhar tiwariLABOUR UNREST AT TOYOTA: THE DECISION DILEMMA

COMPANY BACKGROUNDJapanese automobile manufacturerJoint Venture : TKM(Toyota Kirloskar Motor Private Limited), 1997TKM established its manufacturing plant at Bidadi, near BangaloreStarted commercial production of cars in 2000

ABOUT THE CASE Place: Manufacturing plant at Bidadi near BangaloreManufactured: Corolla, Camry, and InnovaWork force: 2378 out of which around 1550 employees belonged to TKMEU, the only company recognized trade unionUnion was affiliated to the Centre for Indian Trade Unions(CITU)

CONFLICTConflict: Between management and union began in 2004Suspension of 15 workersReason for suspension: For misconduct, including and assault on a supervisor and disruption of workAn independent inquiry committee was formed to inquiry into the misconduct by the suspended workers

STRIKEStrike: On January 6th , 2006Union did not give the mandatory 14 days notice period before going on strikeDuring strike: Union blocked the road to the plantStopped productionObstructed the movement of cars from the plantMan handled and forcibly prevented non- unionized workersThreatened to blow up LPG gas storage tanks inside the plant

LOCKOUTLockout: January 8th, 2006Decision was taken on the third day of the strikeThe Karnataka government took steps to reach amicable solution between management and workers unionDispute regarding the dismissal of 3 employees are referred to DLCOn January 9th,2006, DLC convened a tripartite meeting to resolve the dispute

On January 12th ,2006 DLC failed to resolve the disputeDLC suggested immediate withdrawal of strike by the union and lifting up of the lockout by the company

GOVERNMENT INTERVENTIONKarnataka government was eager to settle the dispute at the TKM plant to project the state as investor friendly Government was pressurized by the trade unions to intervene into the matter and resolve the dispute in unions favorJanuary 20th, 2006- TKMs management lifted the lockoutAgreement: Workers has to sign good conduct declaration which is stated that - Maintain discipline in the plant - Ensure full productionAlso trained 700 people to work in shop floor to work during emergency.

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