INDUSTRIAL

RELATIONS
COMPARISON OF IR IN INDIA JAPAN
AND KOREA
COMPARISON OF IR : JAPAN,
KOREA AND INDIA
 IR IN JAPAN.
 IR IN KOREA.
 COMPARATIVE FEATURE OF IR OF
JAPAN AND KOREA WITH INDIA.
 LESSONS FROM:-
 TOYOTA-KIRLOSKAR AND HERO-
HONDA LABOUR CONFLICTS.
 SAMSUNG AND HYUNDAI
OPERATIONS.
IR IN JAPAN

 PRE-WORLD WAR LABOUR

RELATIONS.
 INDUSTRIAL GROWTH AFTER WW II.
 WESTERN INFLUENCE.
 WORLD LEADERS IN
MANUFACTURING, QUALITY AND
TECHNOLOGY.
 STRONG CULTURAL INFLUENCE.
 ETHICAL PRACTICES AND VALUE
JAPANESE CHARACTER
 WILL TO SURVIVE AND GROW.
 NATION ABOVE COMMUNITY AND
SELF.
 ADAPTABILITY, FLEXIBILITY AND
DESIRE TO LEARN.
 DISCIPLINE AND ORDER.
 THE COLLECTIVE FOCUS.
 DEDICATION, COMMITMENT AND
LOYALTY.
CULTURAL ATTRIBUTES.
TRADITIONAL IMPACT
 ONJO- WARM FEELING OF
AFFECTIONS.
 COMPANY REFEREED TO ‘UCHI’ –
OUR HOUSE.
 ELDER – SENIORITY BASED
PROMOTION.
 SOCIAL HARMONY- INDUSTRIAL
PEACE.
 PATERNALISTIC ATTITUDE OF
MGT.
 PRIDE – OWN FLAG AND ANTHEM
ESSENCE OF EMPLOYEE-
EMPLOYER RELATIONSHIP.
 FAMILY AND GROUP
ORIENTATION.
 SOTO, NAKAMA AND SCHI.
 LONG TERM EMPLOYMENT AND
ORGANISATION PLANS.
 EMPHASIS ON FUTURE SKILLS
AND TRAINING.
 COLLECTIVE RESPONSIBILITY IN
DECISION MAKING – RINGI. Eg
Quality Circles..
TRADE UNIONS
STRUCTURE OF UNIONS
 Japanese trade union organizations have a
three-tier hierarchical structure:
 enterprise-based unions,
 industrial federations, and
 the national center at the top.
 The enterprise-based unions - to improve
working conditions, to monitor corporate
activities, and to provide services to their
members.
 The industrial federations - common working
conditions in the industry, discuss industrial
policies and other problems, and strive to
rectify these industry-specific problems.
 JAPANESE UNIONS
The largest confederation,
Japanese Trade Union
Membership is about 7.3
Confederation (RENGO)
million in 2000.
The second largest
National Confederation of Trade confederation, more militant
Unions (ZENROREN) than Rengo. Membership is
about 1.0 Million in 2000.
The smallest confederation,
National Trade Union Council
membership is about 0.3
(ZENROKYO) Japanese Only
million in 2000.
IIMF-JC (an affiliate of the
International Metalworkers'
Japan Council of Metal Workers Federation) is a coordinating
Union (IMF-JC, ZEN NIHON body among of union
KINZOKU SANGYO federations of metal-working
RODOKUMIAI KYOGIKAI) industries, such as auto,
steel, electronics, and ship-
building.
　 　
SOUTH KOREA

 INFLUENCED BY JAPAN.
 Enterprise unionism;
 Decentralized collective bargaining
structure; and
 Life-long employment practices.
 CLOSE CULTURAL LINKS.
 AS "PATERNALISTIC" OR
“AUTHORITARIAN” .
 INFLUENCES OF AMERICANISM.
 LATE STARTER IN 1960-70s.
TRADE UNIONS
 198Os – ENTERPRISE LEVEL TUs.
 MARTIAL LAW 1981 – FORCED TO
BE PART OF GOVT MANDATED
“FKTU”.
 LARGE CONGLOMERATES
“CHAEBOL”.
 1987 LARGE SCALE DISPUTES.
NATIONWIDE STRIKE.
 MASS DISPUTES – LABOUR
RELATIONS REGULARIZATIONS.
 1997 - KCTU.
DIFFERENCES : KOREA AND
JAPAN
 MORE BLUE COLLARED WORKER
IN KOREA.
 MORE COOPERATION BETWEEN
LABOUR AND MANAGEMENT IN
JAPAN.
 CENTRALIZED BARGAINING
STRUCTURE JAPAN.
 INSTITUTIONALIZED TRIPARTISM.
 AMERICANISM AND
INFORMALISM.
COMPARISON OF IR
 TRADE UNION STRUCTURE.
 JAPAN – COHESIVE, NATIONAL,
INDUSTRY AND ENTERPRISE LEVEL.
 KOREA – NATIONAL AND
ENTERPRISE LEVEL.
 INDIA – FRAGMENTED, MULTI-
UNION
 ENTERPRISE LEVEL AND LARGE
FEDERATIONS/CONGRESS.
CULTURAL BONDAGES
 SAMSUNG. The work culture at
Samsung is based on the fundamental
belief that employees are its most
important asset. Respect and genuine
concern for each employee in the
organization is the basic principle on
which the organization functions. We
believe that by giving mutual respect,
recognition, trust, open
communication, transparency and
opportunities for growth, employees
will perform to their fullest potential
and will be sincere, dedicated and
committed to their jobs.
CULTURAL BONDAGES
 HONDA.
 Foster a corporate culture that
enhances individual creativity
and teamwork value, while
honoring mutual trust and
respect between labour and
management.
 Pursue growth in harmony with
the global community through
innovative management.
CULTURAL BONDAGES
TATA.
 We must be caring, show respect,
compassion and humanity for our
colleagues and customers around the
world, and always work for the benefit
of the communities we serve.
 We must work cohesively with our
colleagues across the Group and with
our customers and partners around
the world, building strong
relationships based on tolerance,
understanding and mutual
TRADE UNION DENSITY

 JAPAN – 22%
 KOREA - 10.6%
 INDIA – 4%.
LEGAL FRAMEWORK
TU RESOLUTI DISPUTE
MEMBER ON STLMNT
SHIP AUTH
JAPAN YES BIPARTITE LABOUR
REL
CMSNR
KOREA YES TRIPARTIT LABOUR
E REL
CMSNR
INDIA YES EITHER COURTS
AND
TRIBUNAL
EMPLOYER
INVOLVEMENT
 JAPAN – HAS TO AGREE TO
BARGAIN, NO UNFAIR PRACTICES
AND DIFFERENTIATION TO UNION
MEMBERS.
 KOREA –NO UNFAIR LABOUR
PRACTICE. CAN GO FOR PRIVATE
SETTLEMENT.
 INDIA –CHANNELS OF
SETTLEMENT.
EMPLOYER ASSOCIATION
 JAPAN. The
Japanese Federation
of Employer’s
Associations
(Nikkeiren)
 KOREA –Employer
association – KEF.
 INDIA – FICCI AND
ASSOCHAM.
WAGE NEGOTIATIONS

 JAPAN – NATIONAL
LEVEL. “Spring Wage
offensive”
 KOREA –
ENTERPRISE LEVEL.
 INDIA – ENTERPRISE
LEVEL, BIPARTITE
“As a part of
Collective
Bargaining.
INFORMAL
COORDINATION
 JAPAN – JOINT
CONSULTATION
ON ROUTINE
MATTERS
 KOREA –
EMPLOYER-
EMPLOYEE
COLLECTIVE
TEAMS.
 INDIA – WORKS
COMMITTEES.
DISPUTE SETTLEMENT
 JAPAN – Bipartite,
Voluntary, Through
The Labour Relations
Adjustment Law
 KOREA – Bipartite,
Autonomous, Labour
Relations
Commission.
 INDIA – Bipartite,
Labour Courts and
Tribunals.
EMPLOYMENT
 JAPAN – LIFE
LONG, LONG
CONTRACTS.
 KOREA – 1-3
YEARLY
CONTRACTS
NORMALLY.
 INDIA –
CONTRACTS
VERY FEW,
SUBJECT TO
NOTICE PERIOD
ONLY.
DISMISSAL
 JAPAN – CANNOT
DISMISS
WITHOUT
NOTICE. 1-3
MONTHS.
 KOREA -
CANNOT DISMISS
WITHOUT
NOTICE. 1
MONTH.
 INDIA - CANNOT
DISMISS
PERIOD OF WORK
 JAPAN – 48 HRS/WEEK. 8 HRS
PER DAY. MAX 56 HRS/WEEK, 12
HRS/DAY.
 KOREA – 40 HRS/WEEK. 8 HRS
PER DAY.
 INDIA – 48 HRS/WEEK. 9HRS PER
DAY
HEALTH, SAFETY AND
INSURANCE
 JAPAN – HEALTH,
UNEMPLOYMENT PENSION AND
INSURANCE PROVIDED.
 KOREA - HEALTH,
UNEMPLOYMENT AND
INSURANCE PROVIDED.
 INDIA - HEALTH, PENSION AND
INSURANCE PROVIDED.
 CULTURAL CONFLICT
 Honda Motorcycle and Scooter India, Manesar:
Labour-management differences started in December
2004. Escalated in April 2005; went out of hand in July
2005 with the riot in Gurgaon where protesters were
lathi charged by the state police. Chief minister R S
Hooda stepped in to resolve the strike; it was settled on
July 30 after HMSI took back four employees who had
been dismissed. Cost the company close to Rs 120 crore
(Rs 1.2 billion) in production losses.
 Hitachi Electric, Gurgaon: Lost two-and-a-half days
production in May 2005, but differences were kept
within company walls. Financial loss estimate
unavailable.
 Toyota Kirloskar Motor, Bangalore: Minor spat
between workers and management over wage hike in
April-May 2005. Issue settled for the time being with a
management truce in the form of a 15 per cent wage
hike. Shaken company considering setting up its second
plant in a location that is relatively peaceful.
 TOYOTA-KIRLOSKAR
FIASCO
“How long can we put up with unruly behaviour? We
would like to restore normalcy as soon as possible, but
at the same time, we would not like to compromise on
discipline.”
– A R Shankar, General Manager, Corporate
Planning Division, Toyota Kirloskar Motor Private
Limited, in 2006.

“There are another 11 people suspended by the

management and we fear they may also be dismissed.
We are officially supposed to work for eight hours but
we are overworked sometimes. And we are treated in
such a way, that we can’t even take a bathroom break
when we want.”
 – R. Ravi, Union Joint Secretary, Toyota Kirloskar
Motor Employees Unions, in 2006.
TOYOTA-KIRLOSKAR FIASCO