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History of Honda motors
company
• It is perhaps best known as an automaker.
• Third largest automaker in Japan and is the world's
top motorcycle manufacturer.
• Its best market is in the United States, where the
majority of its sales are generated.
• In 1949 Fujisawa provided the capital, as well as
financial and marketing strategies, to start the new
company.
• In 1950, Honda stunned the engineering world by
doubling the horsepower of the conventional four-
stroke engine.
• By 1951 demand was brisk, yet production was
slow.
• By 1954 Honda had achieved a 15 percent share of
the motorcycle market.
• In 1967 Honda diversified and also began to
produce cars and trucks.
Reasons For Unrest In Honda
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.
Casual/workers (see glossary) hired through contractors are not given work
periodically as production targets change. When that happens, Rs 500 is
cut from their monthly wage.
There have been cases of physical harassment of the workers hired through
contractors by supervisors and managers of Hero Honda.
Workers’ Demand
• 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. In comparison, ITI graduates (skilled workers hired
through contractors) get Rs 6,500.
• The wage of the contract workers will go into a bank and they will have
ATM accounts.
Monetary Political
Others
Legal
Job Specific
Suggestions for Settling the
Disputes
• One way to maintain the balance of control would be to
develop well specified procedures to retrench employees.
Such procedures do not provide flexibility to the employers
to retrench arbitrarily. Hence, it could protect the balance
significantly.