A study on Industrial Relations with respect to Industrial Unrest at Hero Honda.

Guide:

Submitted by Name of Student: Prince Philip

Ms. Latika Malhotra

Roll No.: 04613701711 Batch: 2011 - 14

INDUSTRIALRELA TIONCONCEPT&SIGNIFICANCE

Definition :
Industrial Relation is a relation between employer and employees, employees and employees and employees and trade unions and the process by which people and their organizations interact at the place of work to establish the terms and conditions of employment. - Industrial dispute Act 1947.

Concept :
The concept of industrial relations has been extended to denote the relations of the State with employers, workers and their organizations. The subject, therefore, includes individuals relations and joint consultation between employers and workpeople at their workplace; collective relations between employers and their organizations and trade unions.

Significance :
Industrial relations leads to the following benefits :

Industrial Peace Higher Productivity Industrial Democracy Collective Bargaining Fair Benefits to Workers Higher Morale Facilitation of Change

INDUSTRIALDISPUTESCONCEPT ,CAUSES&PREVENTION

Definition :
The term industrial dispute is defined by Section 2(k) of the Industrial Dispute Act, 1947 as, any dispute or differences 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.

Concept :
Industrial dispute is disagreement and difference between two disputants, namely, labour and management. This disagreement or difference could be on any matter concerning them individually or collectively but must be connected with employment or non employment or with the conditions of labour.

Causes :
The causes of industrial disputes can be broadly classified into two categories : economic and non-economic causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments. The non economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc.

Prevention :
Liberal and fair management policy regarding wages and other benefits. Satisfactory working conditions. Better employer-employee communication, greater and more effective attention to

employee problems, complaints and grievance handling machinery.

Voluntary arbitration.

MACHINERIES OF INDUSTRIALDISPUTES SETTLEMENT

The machinery has been provided under the Industrial Disputes Act, 1947. It, in fact, provides a legalistic way of settling the disputes. The goal of preventive machinery is to create an environment where the disputes do not arise at all. Even then if any difference arise, the judicial machinery has been provided to settle them lest they should result into work stoppages. In this sense, the nature of this machinery is curative for it aims at curing the ailments. This machinery comprises following organs :
Conciliation Court of Enquiry Voluntary arbitration Adjudication (Compulsory arbitration).

ROLE OFHRM INDISPUTE SETTLEMENT

HR professionals, line managers and those dealing with disputes and tensions in the workplace need to be able to manage conflict and tackle difficult situations with confidence, the CIPD (Chartered Institute of Personnel and Development) claimed. HR needs to develop "more positive strategies" for dealing with workplace conflict. Once a disagreement goes down the path of formal action, it can become increasingly difficult to secure a satisfactory outcome and the legal ramifications can be both costly and time-consuming. Organisations, therefore, need to manage workplace disputes better and seek to resolve them early on. HR has "a fundamental role" to play in this process, and a responsibility to ensure line managers are suitably trained and supported.

INDUSTRIAL DISPUTE SETTLEMENT PROCESS & MACHINERIES IN HERO HONDA

Glimpse on the structure of Hero Honda Company :
The Hero Group, directed by the industrial dynasty Munjal, started as a supplier of bicycle components in the early 40s. In 1984/85 Hero Group started a joint-venture with Honda. In 2006 Hero Honda sold 3,336,756 motorcycles in India, which means that Hero Honda has a major market share in India (still around 40 to 45 percent) and is the biggest motor-cycle and bicycle producer in the world. In 2007 Hero Honda laid the foundation stone of a third plant in the Gurgaon area (the other two plants are located in Dharuhera and Haridwar). The Gurgaon plant has a daily output of about 6,000 bikes per day and a major dispatch department for spare parts.

Strike at Hero Honda :

The unrest hit one of the main cores of the local industry. The Hero Honda factory in Gurgaon is the twowheeler factory with the highest daily output in India and attached to it are over 240 official suppliers.

The strike hit with full force, and no notice was given, therefore the management could not prepare a countermove (piling extra stocks, increasing production in other plants, mobilising strike-breakers, etc.).

According to the group of workers who struck, their demands were addressing issues of hierarchy (abolishment of different kind of uniforms) as well as wage questions.

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

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.

Machineries of this Industrial dispute :

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.

Besides this 30 percent hike, there will be no difference in dress colour between

helpers and ITI graduates.

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

accounts.

They too will get a gift annually.

INDUSTRIAL RELATION SCENARIO IN HERO HONDA

The company is committed for safety and health of its employees and other persons who may be affected by its operations. Company believes that safe working practice leads to motivated workforce and higher productivity and to that end, all possible safety measures are put in place to eliminate accidents at the factory. Employees are encouraged to report the incidents. Even small Incidents are investigated and analysed to prevent reoccurrence and improve upon safety record.

CONCLUSION
With the rise in informalisation of the workforce in India, workers are increasingly realizing from their own experiences that only by forming trade unions and compelling factory management to provide space for collective bargaining can they convert informal employment to formal employment and insure better wages and working conditions. All demands of regularization of the workforce and better wages are now always linked with the larger issue of the formation of a trade union and its recognition. Thus, Industrial relations do not constitute a simple relationship between the employers and the employees. They are complex and multi-dimensional resting on economic, historical, social, psychological, ethical, political, legal and other variables.

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