Case Study on Honda Motorcycle and Scooter India Ltd.: Labor Unrest in 2009

In 2009, labor unrest started in the Manesar plant of Honda Motorcycle & Scooter India Ltd. (HMSI), the Indian subsidiary of the Japan-based Honda Motor Company. The workers allegedly resorted to a job slowdown and other tactics to push for higher wages and perks.

Issues   » Labor/industrial unrest   » Labor/industrial dispute   » Strike and job slowdown Introduction Labor unrest, which attracted a lot of media criticism against Honda Motorcycle & Scooter India (Private) Ltd. (HMSI), the Indian subsidiary of the Japan-based Honda Motor Company Ltd. , in 2005, again raised its head at the company’s Manesar plant in the year 2009...

Questions for Discussion

1. In light of this case, discuss the issues and challenges faced by organizations witnessing labor unrest. How can labor disputes be resolved?

2. Critically analyze HMSI's decision to set up a plant outside of Haryana. Do you think the company could benefit from such a move considering that labor unrest is widespread in India?