Industrial Disputes

INTRODUCTION

• THE RIOT IN LABOUR MANAGEMENT DISPUTE IN GURGOAN.

• THE LEFT PARTIES IN POWER ARE THE FORCE BEHIND THIS RESURGENCE.

• THE UPA GOVERNMENT IN CENTER AS A MAJOR CONDUSIVE ENVIRONMENT.

• WHAT HAPPENED ON BLACK MONDAY DOES NOT HAPPEN AGAIN.

• THE LABOUR STRIKES GLOBALLY HIT ONCE IN 8 TO 10 YEARS.

• THE HONDA INCIDENT SHOULD BE TAKEN AS EARLY WARNING OF A BIG WAVE OF LABOUR MILITANCY.

WHAT IS AN INDUSTRIAL DISPUTE?

“According to Sec. 2 of the Industrial Disputes

Act, 1947, “Industrial dispute means any dispute

or difference between employers and employers or

between employers and workmen or between

workmen and workmen, which is connected with

the employment or non-employment or the terms

of employment or with the conditions of labour of

any person”.

CAUSES OF INDUSTRIAL DISPUTES

WAGES

EMPLOYMENT

SECURITY

CONCLUSION OF COLLECTIVEAGREEMENTS

Procedures for Settling Industrial Disputes

Grievance Procedure

Adjudication

ArbitrationConciliation

& Mediation

NegotiationCollective

Bargaining

History of Honda motors company

• It is perhaps best known as an automaker.

• Third largest automaker in Japan and is the world's top motorcycle manufacturer.

• Its best market is in the United States, where the majority of its sales are generated.

• In 1949 Fujisawa provided the capital, as well as financial and marketing strategies, to start the new company.

• In 1950, Honda stunned the engineering world by

doubling the horsepower of the conventional four-

stroke engine.

• By 1951 demand was brisk, yet production was slow.

• By 1954 Honda had achieved a 15 percent share of

the motorcycle market.

• In 1967 Honda diversified and also began to

produce cars and trucks.

Although 50 percent of these workers have worked in the plant for more than six to seven years, they are not offered permanent contracts.

There is a huge wage difference: after six to seven years a permanent worker will receive up to 30,000 Rupees per month while a worker hired through a contractor gets between 2,200 and 6,200 Rupees.

Most workers have all kinds of trouble because they do not receive a company card, which is necessary for dealing with authorities (e.g., when applying for medical care or other benefits). They are not enrolled in the register, which means that they will not receive PF or ESI.

Casual/workers (see glossary) hired through contractors are not given work periodically as production targets change. When that happens, Rs 500 is cut from their monthly wage.

There have been cases of physical harassment of the workers hired through contractors by supervisors and managers of Hero Honda.

Reasons For Unrest In Honda

Workers’ Demand

• A 30 percent hike in wages of casual workers. Workers hired through contractors used to get Rs 4,000-4,500 a month for an 8 hour shift. That will now be Rs 5,500. In comparison, ITI graduates (skilled workers hired through contractors) get Rs 6,500.

• Besides this 30 percent hike, there will be no difference in dress colour between helpers and ITI graduates. The initial demand to abolish the different uniforms for permanents and temps has not been met.

• The wage of the contract workers will go into a bank and they will have ATM accounts.

• They too will get a gift annually.

Root Cause Analysis

Others

Job SpecificLegal

Monetary Political

Suggestions for Settling the Disputes

• One way to maintain the balance of control would be to develop well specified procedures to retrench employees. Such procedures do not provide flexibility to the employers to retrench arbitrarily. Hence, it could protect the balance significantly.

• Some mechanism could be developed whereby, the company retrenching the employees should take an undertaking that whenever it needs to diversify or need more manpower, it shall give preference to the workers it is retrenching at present.

• Companies could also opt for unconventional problem solution:-

– Cutting working hours of workers to avoid possible retrenchments, transfer or redeployment of labour from excessive labour to labour deficient units.

– Labour can be given three to six weeks break and encouraged to go in for skill enhancement. It will lead to a two way gain: personal growth for the employee and employer can put to use worker's enhanced skills.

– Amendments under Industrial Relations Bill of 1982 should be implemented as it contains many provisions that would attend to the current concerns like setting up of a time-bound grievance redressal, fixing a time limit for the adjudication of individual and collective disputes.

Continued…

CONCLUSION

• LABOUR MARKET ARE NOT EASY IN SHRINKING EMPLOYMENT OPPERTUNITIES.

• LARGER QUSTION OF SOCIAL SECURITY PROVIDED TO WORKERS.

• GOVERNMENT SHOULD DISPEL THE FEAR OF TRADE UNION.

• NO SOLUTIONS IF STAKEHOLDERS TAKE EXTREAM POSITIONS.

• EMPLOYER AND EMPLOYEE ARE TWO FACES OF SAME COIN.

• EMPLOYER SHOULD PAY MORE ATTENTION TO HUMAN DEVLOPMENT AND CAPACITY BULIDING.

• WORKERS MUST REALIZE THE IMPORTANCE OF

“NO WORK NO WAGES”