Toyota Ir Problem

Introduction Toyota Motor Corporation (TMC), the world·s second largest automobile manufacturer, had entered into the Indian market in 1997 through a joint venture with Kirloskar Group. ‡ The new entity was called Toyota Kirloskar Motor Private Limited (TKM). ‡ TKM established its manufacturing facility at Bidadi near Bangalore. ‡


case deals with the labour unrest at the Bidadi plant. Dispute between the TKM management and the workers· 15 workers were suspended and 3/15 were dismissed. Workers were made to do overtime and sometimes they didn·t get bathroom break also.

January 08, 2006, the workers of the plant went on strike, which was followed by a lockout by the company. 1550 out of 2358 employees on rolls at Bidadi were the TKMEU members. Clashes were guided by external parties such as Trade Unions and Political Parties.


BACKGROUND TKM, a joint venture between Toyota and the Kirloskar group, established its plant at Bidadi on October 06, 1997, with an initial investment of Rs. 7 billion. y 74%stake was held by toyota and 26 %was held by Kirloskar group. In 1999, Toyota increased its stake to 89%. y In Feb 2004, 15 employees were suspended on the grounds of disrupting work and for unruly behaviour. y In 2006, TKM dismissed 3/15 employees after a year long investigation and appraisal.

TKMEU decided to go on strike after the 3 employees were dismissed. The TKMEU alleged that 3 employees were dismissed because they have been actively participating in the functioning of the TKMEU and demanded that they be reinstated. Management rejected their demand and the 3 employees were not taken back. Workers went on strike.

For the concern and safety of the plant the management declared a lockout. Industry analysts opined the strike at TKM raised a doubts about the success of the Japanese style of management in the Indian market. Honda Motor Company Limited (HMCL)incident of violent protests from workers, disrupting production at the plant.


unrest Worker·s unruly behavior. Worker·s Indiscipline and poor performance. Overtime instead of 8 hours. No bathroom breaks. Strike followed by lockout. External party interference.


The strike and lockout were illegal, therefore, it should be lifted as soon as possible. Company should place the condition that workers resuming duty will sign a good conduct declaration . – The declaration stating that the workers would, henceforth, maintain the discipline in the plant and ensure full production. – The company, however should strictly mention that if the workers don·t sign the declaration, then they would not be allowed to enter the plant.

To avoid overtime of the employee and they could be called in different shifts. Overtime should be made volunteer Overtime should be compensated Proper break time should be maintained.

Outsource certain activities if the strike or lockout is not lifted. Outsourcing will prevent from decrease in the production.