The Culture vs Strategy

Abstract

Abstract This case describes an Industrial Relations (IR) situation in an automobile company in India. It begins with the mention of incidents which begins with lockout at the company. A lockout is a temporary work stoppage or denial of employment initiated by the management of a company during a labour dispute. According to the rule, after the company’s lockout, workers are not paid till the time it (lockout) is revoked. The monthly salaries of its employees for the period before the incident will be paid only after the lockout is withdrawn and the plant starts functioning. The case highlights the growing number of instances of clashes between the employees and the management of companies in India, due to unjustified demands by the workers which are often guided by external parties such as trade unions and political parties. German automobile component manufacturer Bosch has declared a lockout at its Jaipur plant due to an ‘illegal go-slow’ action since 19 March 2015 and on an indefinite hunger strike by the union office bearers.