Toyota had a joint venture in Karnataka called Toyota Kirloskar Motor Private Limited. In 2005, the 2,358 employees went on their first strike to demand a wage hike due to high production and quality levels. Some employees were suspended for misconduct during the strike. In 2006, there was a second illegal flash strike without proper notice over the suspended workers. The strike caused losses of Rs. 700 million. After negotiations, the lockout was lifted when workers signed good conduct declarations and agreed to ensure full production.

1. TOYOTA – Case Study
BY :
J.Subhashine – 3511140024

2. COMPANY BACKGROUND
• Joint Venture : Toyota & TKM ( Toyota
Kirloskar Motor Private Limited ) , Karnataka –
Oct 6th , 1997
• No of Employees : 2358 as on Jan 2006
• Trade Union : TKMEU ( TKM Employees
Union)
• Members of TKMEU : 1550 Workers

3. • Place : Bidadi plant of carmaker Toyota Kirloskar
Motor Private , B’Lore
• Investment in the plant : 1500 Crore
• Type of car produced : Innova , Corolla and
Camry cars
• First time strike : May 2005
• Reason for strike : Hike in wages
• Reason for hike in wages : 99% production &
100% quality (working in shift)

4. • During strike : 15 employees were sacked & 3
were suspended
• Reasons for suspension : For attacking supervisor
& misconduct
• Solution to the strike : Wages were revised ( 15 –
20% wage hike )
• Second time Strike : Jan 6th 2006
• Reason for second time strike : case of 3
suspended workers remained unresolved

5. • Strike Type : flash strike
• Why illegal strike : Employee Union did not
give 14 days notice period ( Dispute Act )
• During strike :
400 employees blocked the road
Threatening to blow LPG Cylinders inside the premisis
Obstructing outward movement of manufactured
vehicle
Illegally stopping production
Mishandling other workers

6. • Supporters of the strike : CITU
• Why CITU support :
– TKMEU affliated to CITU
– Working condition inhuman
– Slave like treatment
– Stretching working hours
– No sufficient relaxation & compensation
• Loss due to strike :
Production :
Normally - 92 cars per shift
during lockout : 40 cars per day
INR 700 MILLION loss
• Period of Lockout : 15 days
• Why Lockout : Safety of plant & worker

7. NEGOTIATION & COLLECTIVE
BARGAINING
• Jan 9TH , 2006 : the representatives of
– TKM, were asked to present
– TKMEU, before DLC ( Deputy
– CITU Labour Commissioner ) -
Order given by State Govt
• Parties involved in Resolving :
TKM , TKMEU , CITU , State Govt , Additional
Labour Court

8. RESULT
• Jan 20TH , 2006 - TKM's management lifted the
lockout .
• Agreement :
– Workers had to sign Good Conduct Declaration
– Ensure full production
• Also trained 700 people to work in shop floor
to work during emergency

9. • Karnataka Govt : Called off strike ( Essential
Service Act )
• TKMEU : Employees signed the good conduct
declaration.

10. RESOURCES
• http://www.moneycontrol.com/news/busines
s/toyota-workers-call-off-strike_199264.html
• www.financialexpress.com/news/toyota...for-
strike...bidadi.../138752
• www.icmrindia.org/.../
• news.techwhack.com/2880-toyota-facing-
strikes-at-their-bidadi-plant/
• www.thehindubusinessline.com/2006/01/.../2
006010903090500.htm