IR Problems at Toyota-Analysis

7/28/2019 IR Problems at Toyota-Analysis

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IR Problems at TKM Pvt. Ltd.

Submitted by Group 8


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Company Background

Joint venture: Toyota and Kirloskar

Group, Karnataka, Oct 6th 1997

No. of employees: 2358 as on Jan 2006

at Bidadi

Trade Union: TKMEU

Members of TKMEU: 1550 workers


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Labor relations at TKM

Prior to the strike and lockout in Jan06, the

plant experienced three other strikes:

First strike: April 2001, went on for two days

Second strike: June 2001

Third strike: Jan 2002, followed by a lockout

(both went on for 53 days)


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In 2002, the company decided to call the

workers in two shifts to meet the increased

demand

Shifts: 8am-4pm, 8pm-4am, overtimebetween shifts

TKM wanted its workers to conform to Toyota

Production System

Followed JIT

Supposed to produce one vehicle every 4.5

minutes


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TKM sends its employees to Toyota plants

located in Japan, Indonesia and Thailand

Despite mandatory overtime , workers refused

to work(75% aged between 20 to 25 years)Strike by the employees against the shift

system and dismissal of workers( January

2002)

Company changed the shift system and hiked

the salaries


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People management policies which

lead to deterioration of IR

Forcing the workers to conform to Toyota Production

System

Dismissal of two office bearers of TKMEU on the

grounds of bad performance

Declaring a lockout against the employees strike

(against the shift system and dismissal of workers)

Suspension of 15 workers in Feb04

Dismissal of 3 out of 15 workers after their misconductwas proved.

Heavy workload and unfavourable working conditions

as per TKMEU


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Ways the problems could have been avoided

The company shouldnt have declared a

lockout without prior notice as it was illegal.

They should have ensured that workers are

paid well for the overtime work. The management shouldnt have terminated

the services of the three employees without

prior notice.

Should have come out with practical solutions

during the initial stages of trouble


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Communication gap between the management

and the workers should have been bridged

Employees grievances should have beenaddressed at the initial stages

Negotiations should have been carried out atan early stage (rather than when the things got

out of hand)


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Role of employees in avoiding conflicts

Conflicts started with

3 members being dismissed because ofmisconduct and unruly behavior

Union doesnt accept these measures andgoes on strike immediately


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Employees should have had more talks and

negotiations in the beginning

Adamant demands by the Union(setting up ofthe union office near the plant)

Prior notice should have been given before the

strike.

Should have resorted to peaceful measures

rather than taking a violent steps

Integration of political forces from outside like

CITU should have been avoided


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Macro-impact of IR problems on economy

According to J Henry-

Industrial Relation is an art, the art of living

together for the purpose of production

Central task of IR system is to put appropriate and

efficiency enhancing constraints on market

Constructs co-operation through appropriately

designed and operated institutions (labor

protection and employee voice)


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Leads to Decreased Productivity

Status difference in the workers of public

and private sector

No Maintenance of Industry peace

Loss in development of industrial

democracy

Unemployment and loss of job security


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THANK YOUSUBMITTED BY:

Arun Joseph(2012199)

Devika S(2012208)

George Oommen (2012209)

Maithili Wagle(2012215)

Padmini (2012222)

Tina John(2012248)

Documents

IR Problems at Toyota-Analysis