Labour Disputes Case
Labour Disputes: A look at the TKM unrest
Introduction:
Toyota Kirloskar Motor Private Limited (TKM) was a joint venture, established in 1997, between Toyota Motor Corporation (Toyota), Japan’s largest car company and the second-largest car manufacturer in the world, and the Kirloskar Group of India. Toyota holds an 89% equity stake and while the Kirloskar Group holds the remaining 11%. Toyota has over 400 acres of land in its Bidadi plant and less than half of the land has been utilised so far even though its plant 's capacity is about 60,000 units per annum. Toyota has invested nearly 15 billion INR in the plant. Some of its most famous brands such as Camry, Innova and Corolla are the end products of this plant. The plant had a total workforce of 2,378 out of which around 1,550 employees belonged to the Employee Union. Toyota 's plant has witnessed labour unrest in 2001 and again in 2002 hitting the production of their vehicles leading to a ban of the strike by the Government.
Below, we discuss the various reasons, which led to the clashes between the management and the employees of TKM. This 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.
Aim:
To understand
• The importance of HR policies adopted by the organization to prevent labor unrest at the workplace.
• The role of trade unions, political parties etc in upsetting the work culture in a company.
The Issue:
On January 08, 2006, Toyota Kirloskar Motor Private Limited (TKM) announced an indefinite lockout of its vehicle manufacturing plant at Bidadi located near Bangalore, Karnataka. The company claimed to have forced to resort to such a decision following a continuous strike by their employee union for third day in a row. The Toyota-Kirloskar union affiliated to the Center of Trade Union (CITU) Jan 9, 2006 demanded
Introduction:
Toyota Kirloskar Motor Private Limited (TKM) was a joint venture, established in 1997, between Toyota Motor Corporation (Toyota), Japan’s largest car company and the second-largest car manufacturer in the world, and the Kirloskar Group of India. Toyota holds an 89% equity stake and while the Kirloskar Group holds the remaining 11%. Toyota has over 400 acres of land in its Bidadi plant and less than half of the land has been utilised so far even though its plant 's capacity is about 60,000 units per annum. Toyota has invested nearly 15 billion INR in the plant. Some of its most famous brands such as Camry, Innova and Corolla are the end products of this plant. The plant had a total workforce of 2,378 out of which around 1,550 employees belonged to the Employee Union. Toyota 's plant has witnessed labour unrest in 2001 and again in 2002 hitting the production of their vehicles leading to a ban of the strike by the Government.
Below, we discuss the various reasons, which led to the clashes between the management and the employees of TKM. This 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.
Aim:
To understand
• The importance of HR policies adopted by the organization to prevent labor unrest at the workplace.
• The role of trade unions, political parties etc in upsetting the work culture in a company.
The Issue:
On January 08, 2006, Toyota Kirloskar Motor Private Limited (TKM) announced an indefinite lockout of its vehicle manufacturing plant at Bidadi located near Bangalore, Karnataka. The company claimed to have forced to resort to such a decision following a continuous strike by their employee union for third day in a row. The Toyota-Kirloskar union affiliated to the Center of Trade Union (CITU) Jan 9, 2006 demanded
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