Hero Motocorp Ltd.

, formerly Hero Honda, is an Indian motorcycle and scooter manufacturer

based in New Delhi, India. The company is the largest two-wheeler manufacturer in the world, and
also in India, where it has a market share of about 46% in the two-wheeler category. The 2006
Forbes list of the 200 World's Most Respected Companies has Hero Honda Motors ranked at #108.

Hero Honda started its operations in 1984 as a joint venture between Hero Cycles of India
and Honda of Japan.

It has three manufacturing units at Dharuhera, Gurgaon and Haridwar. About 6500 vehicles were
produced each day at each plant.

There were about 1200 permanent workers and 4000 based on contract in Gurgaon plant.

CASE DETAILS:

PLANT: GURGAON

STRIKE START DATE: Apr 10, 2006

STRIKE END DATE: Apr 14, 2006

NUMBER OF WORKERS INVOLVED: 4000 (Contractual Workers).

LOSS DUE TO STRIKE: Around 1 Billion

DEMANDS OF WORKERS:

Wage hike

Extra Casual Leaves (Paid Leaves)

Medical and other benefits as par with the permanent workers.

Salary Accounts in Banks. (Before that salary was given in cash by hand).

The workers were demanding regularization of 1,000 contract workers right away and 100 workers
every month.

BACKGROUND:

Around 4000 contract workers were denied regularization for the last 5 to 6 years.

Actually the pay for contract employees was Rs.4000 to Rs.6700 per month where as a permanent
worker was given an amount of Rs.35000 to Rs.40000 for the same work performed.

Rs.10 per day was deducted daily for food and tea only from the casual workers salary.

Casual helper at the plant was getting a meager Rs.2000 to Rs.2500 at the end of the month.

The management and contractors were equally involved in the exploitation of contractual workers.
Apr 11, 2006 News Article

ACTION TAKEN:

April 14, 2006 a Tripartite meeting was held between Haryana’s Additional Labor Commissioner,
Management and Workers Representatives and they agreed for the settlement, under which some
demands were met.

It was an important victory for the contract workers, who are otherwise forced to live in miserable
conditions.

In order to complement the loss of production, output at its Dharuhera plant had been stepped up.

"As a responsible corporate, the company provided the striking workers all the facilities, including full
meals" it said.

DEMANDS APPROVED:

30% hike in salary

Two days of casual leave every month (Paid Leaves).

Medical benefits in accordance with company rules.

2000 casual workers made into permanent.

Opening Bank Accounts for the casual workers.

ATM Cards.

Issuing Identity Cards.

Apr 15, 2006 News Article

SUGGESTIONS:

The management should not exploit and suppress workers who are loyal towards the company.

Casual employees should be made permanent based on experience and assessment (Exams,
Interviews).

Basic allowances such as food, shelter, medical must be provided. (Motivation: Maslow’s Need
Hierarchy theory).

There must be good link communication between Management and Workers.