Honda Unrest Essay

996 Words4 Pages
The above case study depicts the critical labour problem of Honda Motorcycles and Scooters India Ltd in the year of 2005. It was a situation which the company had to face and which became like a nightmare for the senior managers and the directors. It was a labour srtike which costed honda a loss of about three billlion yen ($27milion) , a heavy decline in the number of workers resulting in a decline in the total output. The company had been in a grip of a majour labour unrest for over a month.The unrest saw the company, a fully­owned subsidiary of Japan’s auto major Honda Motor Co., suffer huge losses due to production being scaled back.Honda's Gurgaon plant has 2,000 workers on its rolls and once produced 2,000 scooters and motorcycles a day. But after workers began agitating for a wage hike since December 2005, production fell to 400 vehicles a day. Slowly and slowly things started heating up and trouble used to simmer in honda factory for over eight months, and finaly things came to a head when the workers demonstratred and were brutally beaten up by the police. Honda Motors Company L.t.d, japan set up its factory in the techno city of india 'gurgaon' known as Honda Motorcycle & Scooter India (Pvt.) Ltd. (HMSI). Gurgaon can be considered as the auto hub of India with factories of Honda, Hero Honda, and Maruti Udyog based here.Honda is the world's largest manufacturer of 2­wheelers. The HMSI factory is spread over 27 acres, at Manesar, in Gurgaon district of Haryana. The foundation stone for the factory was laid on 14th December 1999 and the factory was completed in January 2001, in a record time of only 13 months. It has a capacity of 100,000 scooters per year. Its initial investment stands at Rs. 200 crores. It has facilities like gravity die­casting, steel and aluminium machining, heat treatment, press and
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