PROBLEMS OF INDUSTRIAL RELATIONS (IR) AT TKM (TOYOTA KIRLOSKAR MOTORS)1) Examine the problems of Industrial Relations (IR) at TKM. What factors led to the strike and lockout at the company's factory? What steps do you think management and employees should take to avoid such problems in the future? To be discussed. Toyota Motor Corporation (TMC), one of the world's largest automobile manufacturers, had entered the Indian market in 1997 through a joint venture with the Kirloskar Group; in 2006, employees were dismissed and suspended by the company, following disciplinary procedures. In response to the company's decision, employees decided to go on strike, leading to a lockout at its vehicle manufacturing plant in Bidadi, located near Bangalore, Karnataka. FACTORS LEADING TO STRIKES AND LOCKOUTS Industrial disputes may be mainly due to economic and non-economic causes. Economic causes are remuneration-related issues such as working conditions, working hours, compensation, salaries, bonus and unpaid leave, unfair dismissals and redundancies. While the non-economic factors are victimization of workers, mistreatment by staff members, political factors, indiscipline, sympathy strikes, etc. Various factors that lead to strikes and lockouts are: • Wages and allowances • Inter/intra-union rivalry • Non-implementation of agreements and rewards.• Dissatisfaction with company policy. • Unjustified dismissal of workers• Withdrawal of all concessions• Personnel and dismissals• Indiscipline and violence• Bonuses• Leave and working hours, etc. Here are the steps that could have been taken by management to avoid such problemsConciliation and mediationThrough conciliation and mediation, a third party provides assistance...... middle of paper ...... heir to its growth economic. But this has proven to be a handicap when practiced abroad. Group culture is also one of the major problems. All decision-making is led by senior management based in Japan. This is a common method of decision-making process in Japanese companies, but if you impose such a structure on overseas subsidiaries, it will prevent Japanese expatriates from making a quick decision at any given time until 'they have news from their head office. By the time the decision is made, the most minor problems can escalate into larger ones, as their fragile individualistic confidence prevents them from mingling freely with staff overseas. Where the Indian culture is very different, the Japanese management style is very difficult to implement on the Indian workforce. Thus, to localize global production, it is very important to understand and adapt to different socio-cultural environments..