IR Problems at Toyota Kirloskar Motor Private Limited
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : HROB088
Case Length : 16 Pages
Period : 2000-05
Pub Date : 2006
Teaching Note :Not Available
Organization : Toyota Motor Corporation, Toyota Kirloskar Motor Private
Industry : Auto and Ancillaries
Countries : India
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"We have requested the government to intervene in the
matter immediately and prohibit the lockout declared by the management which is
illegal. The government should prosecute the management for violating labour
laws and issue immediate relief to the dismissed employees such as reinstatement
and payment of wages during the dismissed period."1
- Meenakshi Sundaram, General Secretary, Centre of Indian
Trade Union, Bangalore, in 2006.
"How long can we put up with unruly behaviour? We would
like to restore normalcy as soon as possible, but at the same time, we would not
like to compromise on discipline."2
- A R Shankar, General Manager, Corporate Planning Division,
Toyota Kirloskar Motor Private Limited, in 2006.
"There are another 11 people suspended by the management
and we fear they may also be dismissed. We are officially supposed to work for
eight hours but we are overworked sometimes. And we are treated in such a way,
that we can't even take a bathroom break when we want."3
- R. Ravi, Union Joint Secretary, Toyota Kirloskar Motor
Employees Unions, in 2006.
Introduction
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On January 08, 2006, Toyota Motor Corporation's (Toyota)4
Indian joint venture company, Toyota Kirloskar Motor Private Limited (TKM)
declared a lockout5 at its plant in Bidadi,
Karnataka. The lockout came after two days of agitation by the plant's employees
against the dismissal of three workers by the management. The strike was the
outcome of an incident that occurred in February 2004 when the management
suspended 15 employees on the grounds of disrupting work and for unruly
behavior. In 2006, TKM dismissed three of these fifteen employees after a
year-long investigation and appraisal of their performance. The management
stated that the three employees had been dismissed due to their indiscipline and
poor performance.
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In response to the company's decision, the employees belonging to the TKM
Employees' Union (TKMEU) decided to go on strike.
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They alleged that the three employees had been dismissed because
they had been actively participating in the functioning of the TKMEU
and demanded that they be reinstated. As of January 2006, TKM had
2,358 employees on its rolls at Bidadi. Of these, 1,550 workers were
members of the TKMEU.
Rejecting their demands, TKM's management stated that workers once
dismissed would not be taken back. The workers immediately went on
strike. The management then declared a lockout stating concern for
the safety of the plant and the workers as the reason. It also added
that the lockout would continue for an indefinite period until the
work atmosphere became peaceful. |
IR Problems at Toyota Kirloskar Motor Private Limited
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