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Summary of the case
Recent clash between the Labor and Management of Honda Motors and Scooters India in Gurgaon has again brought back the bogey of strikes of socialist era. Everyone including MNCs, government, economist and employers are skeptical of resurgence of Labor movement. If labor Movement gets a new life, it can give a severe jolt not only to Indian economy but also to all over the world. Globalization and Liberalization has forced Indian government to give a serious thought to their anarchic labor law, which makes their companies uncompetitive globally and discourages foreign companies from investing in India. Indian labor laws are among the most rigid in the world. Some recent data compiled by the World Bank collate the level of rigidity of hiring and firing rules in different nations -100 being the score of the highest conceivable rigidity. India is among the most rigid countries with a score of 48. China has a score of 30, Korea 34, Norway 30; Singapore closes to 0. Therefore this crisscrossing network of chaotic, strangulating, overlapping and often- contradictory laws need an overhaul. Besides Government, it is the responsibility of the employer to develop some well specified procedure that must not create undue unrest among workers and whenever they need more manpower ,they should a give preference to the workers it is retrenching at present. They should also introduce some Unemployment Insurance schemes made by the contribution of employees and employer.

Reasons which catalyzed the workers anger:

After the tragedy, meeting with the workers, members of trade unions, reconstructions of the unfolding of events from statements of injured workers and their terrified families, nurses and other staff of the Gurgaon Civil Hospital reveal a picture completely buried under the yarns of lies and deception being spun by the police, administrative machinery and the media.
The present impasse had its genesis in...