Abstract

This case is about the labor unrest at Gurugram, India-based Honda Motorcycle and Scooter India (HMSI), a wholly owned subsidiary of Honda Motor Company, Limited, Japan. Trouble started after the management of HMSI asked 200 temporary workers to go on leave on November 5, 2019. The company claimed that the workers had been laid off due to a slowdown in the automobile sector due to sluggish growth in the Indian economy, which had led to reduced production. About 2000 contract workers went on a tool down strike, and were soon joined by permanent workers. The members of the HMSI union claimed that production was going on normally at the company’s other plants, and demanded compensation for the retrenched workers. The management of HMSI gave a call to the permanent workers to join duty by the end of November. While many employees rejoined after signing a good conduct agreement, union members claimed that without the contract workers it would not be possible to resume production. While the impasse continued, HMSI continued to produce vehicles at its other plants and the contract workers were left staring at an uncertain future.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine the cause of labor unrest at HMSI.
• Understand the stages of conflict development.
• Understand how industrial disputes can be prevented.
• Explore what HMSI management should do going forward.

Keywords

Industrial Relations; Labor Unrest; Labor relations; Labor-Management Dispute; Collective bargaining; Strike action; labor laws; Lockout; Worker participation; Indian Automobile Sector; Economic Slowdown; Conflict management; Progressive disciplinary action