2. Hero Honda Motors Limited .
Joint Venture 1983 :- The Hero Group of India and Honda of
Japan
It is world's biggest manufacturer of 2 wheeler vehicles.
Plants at Dharuhera , Gurgaon and Haridwar are capable of
manufacturing 3.9 million bikes per year.
Gurgaon plant capacity - 6,000 units per day.
There are about 1,200 permanent workers, while 4,000 are on
contract .
Casestudy : HERO HONDA
3. 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 ₹100 crore .
CASE FACTS
4. Around 4000 contract workers of Hero Honda's Gurgaon Plant
were refuse regularization for the last 7 to 8 years.
A Contractual Worker Average paid is ₹5000 P/M and ₹40,000
P/M salary of a Permanent Worker performing the same job.
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 ₹2000-2500 at the end of the month. The
management and the contractors are equally involved in the
exploitation of the contract worker
CASE BACKGROUND:
5. Production at the plant, which makes about 6,000 bikes a
day at Gurgaon was paralyzed.
It lead to the loss of ₹100 crore to the company.
It severely impacted the industrial environment in the
state and hence it was a concern for all industry.
EFFECTOF THE STRIKE
6. 14th April 2006, 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.
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.
ACTION TAKEN &SOLUTION:
7. 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 the rights of the
worker.
Learning
