Labor Unrest at Honda Motorcycle & Scooter India (Private) Limited

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Case Details:

Case Code : HROB104
Case Length : 15 Pages
Period : 2004-2005
Pub Date : 2008
Teaching Note : Available
Organization : Honda Motorcycle & Scooter India (Private) Ltd.
Industry : Automobile
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Violation of Laws?

Some analysts charged that the incident was fallout of the long-term oppression and malpractices at the Gurgaon factory by the HMSI management.

They alleged that HMSI's management had violated certain laws relating to the welfare of workers (Refer to Exhibit III for laws related to welfare of workers in India).

It was reported that a worker had allegedly been kicked by a Japanese manager on the shop floor in December 2004. The services of four other workers who had come to his rescue were allegedly terminated...

The Aftermath

HMSI was established on August 20, 1999, and a plant was set up at Manesar to manufacture two-wheelers for the Indian market. HMCL made an initial investment of Rs. 3 billion to establish the plant which had an annual production capacity of 200,000...

Could this Ugly Situation have been Averted?

Several factors can lead to a conflict between the workers and the management of any company, and as such, companies should be prepared to trace the root cause of the problem and solve it. Industry experts opined that with proper understanding of the industrial laws and causes of disputes, the management and the workers of any company could avoid incidents such as the one at HMSI (Refer to Exhibit IV for the Root Cause Analysis for Labor Unrest)...


Exhibit I: Some Images of Violence during the HMSI Protest
Exhibit II: Some More Glimpses from the HMSI Incident
Exhibit III: Laws Related to Welfare of Workers in India
Exhibit IV: Root Cause Analysis for Labor Unrest


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