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Toyota – case study

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industrial relation

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Toyota – case study

  1. 1. TOYOTA – Case Study BY : J.Subhashine – 3511140024
  2. 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. 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. 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. 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. 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. 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 , AdditionalLabour Court
  8. 8. RESULT• Jan 20TH , 2006 - TKMs 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. 9. • Karnataka Govt : Called off strike ( Essential Service Act )• TKMEU : Employees signed the good conduct declaration.
  10. 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

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