Hero Honda Strike Case Final Ppt

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Hero Honda Strike Case (Strike):

Hero Honda Strike Case (Strike) Group No:9 Group Members: Yuvarani DM-060-45 Nikitha DM-060-46 NischalaDM-060-48 Shruti DM-06049

Industrial Disputes Act 1947:

Industrial Disputes Act 1947 “A cessation of work by a body of persons employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to continue to work or to accept employment” In simple words Strike is a very powerful weapon to get its demands accepted by a trade union. According to industrial disputes act, 1947, Strike means , “cessation of work by a group of workers for the purpose of bringing pressures on their employers to accept their demands”.


Introduction In any Industrial Endeavour co-operation of labour and capital is quite essential for its success A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted. Right to strike recognized as integral to collective bargaining and is supported by social justice.

Types of Strikes:

Types of Strikes

Types :

Types Economic Strike: Under this type of strike, labors stop their work to enforce their economic demands such as wages and bonus. In these kinds of strikes, workers ask for increase in wages, allowances like traveling allowance, house rent allowance, dearness allowance, bonus and other facilities such as increase in privilege leave and casual leave. Sympathetic Strike: When workers of one unit or industry go on strike in sympathy with workers of another unit or industry who are already on strike, it is called a sympathetic strike. The members of other unions involve themselves in a strike to support or express their sympathy with the members of unions who are on strike in other undertakings. The workers of sugar industry may go on strike in sympathy with their fellow workers of the textile industry who may already be on strike. Case: Kambalingan Vs Indian Metal Corporation


Contd … General Strike: It is a strike by members of all or most of the unions in a region or an industry. It may be a strike by all the workers in a particular region of industry to force demands common to all the workers. These strikes are usually intended to create political pressure on the ruling government, rather than on any one employer. It may also be an extension of the sympathetic strike to express generalized protest by the workers. Sit down Strike: workers do not absent themselves from their place of work when they are on strike. They keep control over production facilities. But do not work. Such a strike is also known as 'pen down' or 'tool down' strike. Workers show up to their place of employment, but they refuse to work. They also refuse to leave, which makes it very difficult for employer to defy the union and take the workers' places

Go slow strike :

Go slow strike Go slow is yet another form of Industrial protest in which workmen do not stop the work but deliberately slow down the process of production in order to cause loss of production of the employer .There is no cessation of work at all and in fact workmen pretend themselves as engaged in doing their work. Case: Sasa Musa sagar Works Vs Shobrati Khan


Cont… Wild cat strike: These strikes are conducted by workers or employees without the authority and consent of unions. Eg : In 2004, a significant number of advocated went on wildcat strike at the City Civil Court premises in Bangalore. They were protesting against some remarks allegedly made against them by an Assistant Commissioner Hunger Strike: In this form of Industrial protest, workmen resort to fasting near the places of work to coerce the employer to redress their grievances. Case: Shree Commercial Colliery Vs Suraj Narain Singh

Reasons for Strike????:

Reasons for Strike???? Strikes can occur because of the following reasons: Dissatisfaction with company policy Salary and incentive problems Increment not up to the mark Hours of work and rest intervals Leaves with wages and holidays Bonus, profit sharing, Provident fund and gratuity Dispute connected with minimum wages

When are strikes justified:

When are strikes justified All strikes are not justified, and nor all strikers are unjustified. If the strike was held by the workers in support of their reasonable, fair & bonafide demands in peaceful manner, then the strike will be justified. If it was held by using of violence or acts of sabotage or for any ulterior purpose, then the strike will be unjustified.


Examples Justified Strikes When existing facilities withdrawn or benefits are withdrawn Unfair Labour practice by management No response from management in spite of referring a demand & issuing a reminder Unjustified Strikes Strikes launched for political reasons Demands are excessive and unreasonable.


HERO HONDA Hero Honda Motors Limited, based in Delhi, India is a joint venture between the Hero Group of India and Honda of Japan. It has been referred to as the world's biggest manufacturer of 2 wheeler vehicles. It has three manufacturing units based at Dharuhera , Gurgaon and at Haridwar . These plants together are capable of manufacturing 3.9 million bikes per year. Production of the plant, which has a capacity of about 6,000 units per day. There are about 1,200 permanent workers, while 4,000 are on contract .


CASE FACTS Place : Hero Honda Gurgaon Plant Strike Duration : 10 April 2006 - 14th April 2006 No. of workers involved: 4000 casual workers Demands: Wage hike, extra casual leave and medical benefits at par with the permanent workers. Financial Loss: Loss of Rs.100 crore .


BACKGROUND Around 4000 contract workers of Hero Honda's Gurgaon Plant (owned by Pawan Munjal ) were denied regularization for the last 7 to 8 years. A contractual Hero Honda worker is paid between Rs. 4000-6700 per month as against Rs. 40,000, the salary of a permanent worker performing the same job. Rs 10 is deducted daily for food and tea only from the casual workers' salary.


Contd…. Contractual workers recruited not only get low wages but also do not receive any pay slip or cards. The casual helper at the plant gets a meager Rs. 2000-2500 at the end of the month. The management and the contractors are equally involved in the exploitation of the contract worker.


ACTION TAKEN On 14th April, a tripartite meeting was held between Haryana's additional labor commissioner, management and worker representatives and they agreed for a settlement, under which some demands were met. It was an important victory for the contract workers, who are otherwise forced to live in miserable conditions.


SOLUTION The agreement included : 30% hike in salary Two days of casual leave every month and Medical benefits in accordance with the company rules, Issuing identity cards ATM cards Opening bank accounts for the casual workers.

Slide 18:

EFFECT OF THE STRIKE Production at the plant, which makes about 6,000 bikes a day at Gurgaon was paralyzed. It lead to the loss of Rs. 100 crore to the company. It severely impacted the industrial environment in the state and hence it was a concern for all industry.

Slide 19:

SUGGESTIONS Issues between the management and workers should be resolved beforehand. There should be a good communication link between the worker and the management. Management should not suppress or violate the rights of the worker.

Slide 20:

Thank you…

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