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Labour unrest-at-toyota
- Toyota had a joint venture manufacturing plant (TKM) in Bidadi, India that employed over 2,000 workers, many of whom belonged to the union TKMEU. - In 2004, a conflict began between management and the union over the suspension of 15 workers for misconduct. This led to a strike by the union in January 2006 without proper notice and a lockout by management a few days later. - The state government intervened to resolve the dispute, and in January 2006 the lockout was lifted with an agreement that workers would maintain discipline and ensure full production.
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Labour unrest-at-toyota
- 1. Presented By: Pallav Tyagi Pavinderyadav Ankur chaudhary Prakhar tiwari LABOUR UNREST AT TOYOTA: THE DECISION DILEMMA
- 2. COMPANY BACKGROUND Japaneseautomobile manufacturer Joint Venture : TKM(Toyota Kirloskar Motor Private Limited), 1997 TKM established its manufacturing plant at Bidadi, near Bangalore Started commercial production of cars in 2000
- 3. ABOUT THE CASE Place: Manufacturing plant at Bidadi near Bangalore Manufactured: Corolla, Camry, and Innova Work force: 2378 out of which around 1550 employees belonged to TKMEU, the only company recognized trade union Union was affiliated to the Centre for Indian Trade Unions(CITU)
- 4. CONFLICT Conflict: Betweenmanagement and union began in 2004 Suspension of 15 workers Reason for suspension: For misconduct, including and assault on a supervisor and disruption of work An independent inquiry committee was formed to inquiry into the misconduct by the suspended workers
- 5. STRIKE Strike: On January6th , 2006 Union did not give the mandatory 14 days notice period before going on strike During strike: Union blocked the road to the plant Stopped production Obstructed the movement of cars from the plant Man handled and forcibly prevented non- unionized workers Threatened to blow up LPG gas storage tanks inside the plant
- 9. LOCKOUT Lockout: January 8th,2006 Decision was taken on the third day of the strike The Karnataka government took steps to reach amicable solution between management and workers union Dispute regarding the dismissal of 3 employees are referred to DLC On January 9th,2006, DLC convened a tripartite meeting to resolve the dispute
- 10. On January12th ,2006 DLC failed to resolve the dispute DLC suggested immediate withdrawal of strike by the union and lifting up of the lockout by the company
- 11. GOVERNMENT INTERVENTION Karnatakagovernment was eager to settle the dispute at the TKM plant to project the state as investor friendly Government was pressurized by the trade unions to intervene into the matter and resolve the dispute in unions favor January 20th, 2006- TKM’s management lifted the lockout Agreement: Workers has to sign good conduct declaration which is stated that - Maintain discipline in the plant - Ensure full production Also trained 700 people to work in shop floor to work during emergency.
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