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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    Labor relations at TKM

    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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    Labor relations at TKM

    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)