A1.

Industrial relations problem at TKM:

There are in total 3 strikes that are talked about in the case. The first in 2001, second in 2002
and the third in 2004. The workers went ahead with forming the union known as TKMEU despite
not being accepted and supported by TKM.
TKH dismissed two office bearers on grounds of misconduct. TKM stated that they had been
warned but still couldnt not match demands and hence were dismissed. In response the
workers went on strike and in turn TKM declared a lock out in 2002.
In 2004 TKM suspended another 15 employees on grounds of misconduct as they had abused a
supervisor and disrupted work. The suspension order was kept pending till further investigation.
Relations further intensified when TMKEU was affiliated with CITU.
Out of the 15 employees suspended finally decided to dismiss 3 employees and the others were
still under suspension after 2 years of investigation.
In response to the strike the company declared a lock-out under section 22, 23 ,24 of the
Industrial Disputes Act of 1947 to ensure safety of the plant as well as the employees.
Suggestions can be
- Better IRLR structure, with employees dedicated to improving the work life of the
employees.
- A redressal committee should be established to tackle employee grievances
- Employees should have spokespersons to voice their concerns
A2. Roles and duties of a trade union & the concept of collective bargaining.
Instead of acting as a peace maker in the situation of unrest and disturbance they acted as cause
of the issues at TMK
They declared a strike in Jan 2005 looking at the dismissal of the 3 employees
TKMEU and TMK relations got further untensified with the affiliation of TMK with TMKEU
After its formation it straight away protested against the biased shift timings which was forcing
the employees to work over time

Collective Bargaining

The process of negotiating the terms of employment between an employer and a group of
workers. The terms of employment are likely to include items such as conditions of
employment, working conditions and other workplace rules, base pay, overtime pay, work
hours, shift length, work holidays, sick leave, vacation time, retirement benefits and health care
benefits.

In my opinion the trade union could have played a much better role in the TMK case. They could have
warned the employees about the fear of job security in response to the warnings by TMK. A prior notice
regarding the strike could have been sent to the TMK officials.
A3. Effects of the TMK case on future FDI investment:

The TMK case will be well heard of in manufacturing and labour intensified industries across
the globe or atleast in the car manufacturing segment. There are certain factors which make
an industry attractive and worthy of large scale investments. Some common factors are:
- The rules and regulations pertaining to the entry and operations of foreign investors
- Standards of treatment of foreign affiliates, compared to nationals of the host country
- The functioning and efficiency of local markets
- Trade policy and privatization policy
- Business facilitation measures, such as investment promotion, incentives, improvements in
amenities and other measures to reduce the cost of doing business. For example, some
countries set up special export processing zones, which may be free of customs or duties, or
offer special tax breaks for new investors
- Restrictions, if any, on bringing home (re-patria ting) earnings or profits in the form of
dividends, royalties, interest or other payments.

Similarly the regulations affecting the trade unions and IRLR are also taken into account if
the core work area of the company is manufacturing in order to avoid conflicts and the
disturbances between employee and employers. There can be certain changes that can be
incorporated in the system which could have guidelines as how to go about designing labour
relations in any organisations.

A4. Japanese Management Culture:

The culture of Japanese management that is often portrayed in Western media is generally
limited to Japan's large corporations.
These flagships of the Japanese economy provide their workers with excellent salaries,
secure employment, and working conditions.
These companies and their employees are the business elite of Japan. Though not as much
for the new generation still a career with such a company is the dream of many young
people in Japan, but only a select few attain these jobs.
Qualification for employment is limited to the few men and women who graduate from the
top thirty colleges and universities in Japan.

These transnational corporation need proper attention as all countries have their own
cultural values which are the driving force in establishing the management style of the
respective country. All such factors should be taken into consideration and all countries
should respect the cultures of other countries. As mentioned above the management styles
of Japan, they differ from that in India. Local HR professionals with experience in the same
industry have to be consulted and the Labour laws should be referred before initiating
operations.