aman bansal hrm project ty-a

8/7/2019 aman bansal hrm project ty-a

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Aman BansalTY-A 3004

HUMAN RESOURCE PROJECTON HERO HONDA STRIKE


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Founded

HONDA January 19, 1984 in

Gurgaon, Haryana, India

HeadquarterNew Delhi, India

Key people

BrijmohanLalMunjal (chairmain and founder),Toshiaki Nakagawa (joint managing director),

PawanMunjal(CEO)

Industry

AutomotiveMotorcycles, Scooters U$ 2.8 billion

Hero Honda Motors Limited, based in Delhi, India, isthe world's third largest manufacturer of motorcycles afterHonda and Yamaha. Hero Honda is a joint venture that beganin 1984 between the Hero Group of India and Honda of Japan.It has been the world's biggest manufacturer of 2-wheeledmotorized vehicles since 2001, when it produced 1.3 millionmotorbikes in a single year. During the fiscal year 2008-09,the company has sold 3.28 million bikes and the net profit ofthe company stood at Rs.1281.7 crore, up 32% from theprevious fiscal year.


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Hero Honda's Splendor is t e world's largest sellingmotorcycle. Its 2 plants are in Dharuhera and Gurgaon, both

in India. Third plant at Haridwar, Uttaranchal has also started

production by April, 2008. It will have production facilitiessuch as Lean Manufacturing concept, more flexible lines &stream line material flow, within & proximity (planning to set

vendors in nearby locations constituting HHML Park) toachievejust in- time manufacturing. It speciali es in dual usemotorcycles that are low powered but very fuel efficient.


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Company profil

Hero is the brand name used by the Munjal brothers in the

year 1956 with the flagship company Hero Cycles. Itis ajointventure between India's Hero Group and Honda MotorCompany; they are related to JagdishLalMunjal.During the 1980s, Hero Honda became the first company in

India to prove that it was possible to drive a vehicle withoutpolluting the roads.

The company introduced new generationmotorcycles that setindustry benchmarks for fuel thrift and low emission. Alegendary 'Fill it - Shut it - Forget it' campaign captured theimagination of commuters across India, and Hero Honda soldmillions of bikes purely on the commitment of increased

mileage.

Hero Honda has consistently grown at double digits since

inception; and today, every second motorcycle sold in thecountry is a Hero Honda. Every 30 seconds, someone in Indiabuys Hero Honda's top-selling motorcycle: Splendor.

Hero Honda bikes currently roll out from two globallybenchmarked manufacturing facilities based at Dharuhera andGurgaon in Haryana. These plants together are capable ofchurning out 3.9 million bikes per year. A third state-of-the-

art manufacturing facility at Haridwarin Uttranchal will soonbe commissioned to cope with sustained customer demand.

Hero Honda's extensive sales and service network now spans

over 3,000 customer touch points. These comprise a mix of


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dealerships, service and spare points, spare parts stockists andauthori ed representatives of dealers across different areas.

Hero Honda values its relationship with customers. Its uniqueCRM initiative, Hero Honda Passport Program, one of thelargest programs of this kind in the world, has over 3 millionmembers on its roster. The program has not only helped HeroHonda understand its customers and deliver value at differentprice points, but has also created a loyal community of brandambassadors.

In Hero Group there is no organi ed labor union and family

members of employees find ready employment within Hero.The philosophy with regard to labor management is "Hero isgrowing, grow with Hero." Hero workers receive a uniform

allowance, as well as House Rent Allowance (HRA) andLeave Travel Allowance (LTA). Extra benefits includemedical check- ups notjust for workers, but also for theimmediate family members. For the majority of the

production workers, who are hired through contractors, thesebenefits are out of reach. There are about 1,200 permanentworkers, while 4,000 worker are on contractual basis workingin hero Honda.


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THE 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.

Around 4,000 casual workers of Hero Honda were on strikefrom 10 April 2006 against the anti-worker stance of the

managementthat had ignored the demands ofthe workers fora long time. The main demands placed were wage hike, jobregulari ation, extra casual leave and medical benefits at parwith the permanent workers.

In fact, around 4000 contract workers of Hero Honda'sGurgaon Plant (owned by PawanMunjal) were deniedregulari ation for the last 7 to 8 years. A contractual Hero

Honda worker is paid between Rs. 4000-6700 per month asagainst Rs. 40,000, the salary of a permanent workerperforming the samejob. Rs 10 is deducted daily for food andtea only from the casual workers' salary. The three majorcontractors who operate in the Hero Honda Gurgaon plantinclude the Sehgal brothers and workers recruited by them notonly get low wages but also do not receive any pay sli p orcards. The casual hel per at the plant gets a meagreRs. 2000-

2500 at the end of the month. The management and thecontractors are equally involved in the exploitation of thecontract worker.


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ACTION TAKEN

On 14th April, a tripartite meeting was held between

Haryana's additional labour commissioner, management andworker representatives and they agreed for a settlement, under

which some demands were met with and on the rest, talks willcontinue.

It was an important victory forthe contract workers, who areotherwise forced to live in miserable conditions. Theagreementincluded

a.30% hike in salary,b.two days of casualleave every month andc.medical benefits in accordance with the company rules,d.issuing identity cards and ATM cards ande.opening bank accounts forthe casual workers.The management also agreed to pressuri e contractors toaddress some of the genuine grievances of the contract

workers. The management agreed to review the situation atthe earliest and look specifically into the demand forabolition of contractlabour and their regulari ation.

Documents

aman bansal hrm project ty-a