Page 73 - DMGT519_Conflict Management and Negotiation Skills

Unit 4: Negotiation

Notes
Research has revealed that labour strikes globally hit once in eight to 10 years. That period
is now nearing. “The Honda incident should be taken as early warnings of a big wave of
labour militancy in the future.” The All India Trade Union Congress (AITUC), which has
just claimed a conquest by bringing Honda Motorcycle & Scooter India’s workers union
into its fold, has now trained its guns on Maruti Udyog Ltd. the leading producer of
passenger cars in the country pertaining to the dismissal of 92 employees during a labour
trouble at Maruti in 2000-2001 and several hundreds opting for a voluntary retirement
scheme, which, it is alleged, is not exactly voluntary.
Labour Unrest
A labour unrest is a social phenomenon of enormous complexity and it is very difficult to
give any complete explanation of this phenomenon. It is a matter of controversy whether
the predominant factors underlying labour unrest are economic or non-economic. It has
been concluded that so long as income remained the all important means for satisfying
human wants and needs, wage would continue to be major consideration in labour unrest.
Considering the nearing period of labour unrest with the recent cases of Honda and
Maruti, it is the time to do root cause analysis and find out what are the possible reasons
which lead to labour unrest so as to address these issues.

Root Cause Analysis
From the study of some of the strikes and lockouts over last 10 years, we concluded that all
the possible reasons can be classified into five major heads. As specific problems are
branched out from the major effect area, the result appears to look something like a
fishbone diagram. The potential problems can then be researched to find the root cause
and correct it. The five heads are as follows:
1. Monetary
2. Political

3. Legal
4. Job Specific
5. Others
Questions:

1. Analyse and Interpret the case.
2. Discuss the case facts.

4.3 Alternatives to Negotiation

The right to differ is regarded in democracies as a fundamental right. Given that everybody
demands the right to have a viewpoint, naturally follows to find out a way of handling the
mutual right to differ and that is negotiation. Negotiating may not work in certain circumstances,
necessitating finding other way outs. There are alternatives to negotiation which are appropriate
and sometimes even preferred to suit the circumstances.

Dictatorship is one of the alternatives to negotiations, which is even preferable in certain
circumstances. If the decision is made unilaterally and the other party accepts it because either
one has surrendered one’s own right or is fearful of the consequences, accepting the right and
might of the dictator. Decisions will be dictated whenever such situations exist such decisions
are far more common than realized and widespread throughout society.

LOVELY PROFESSIONAL UNIVERSITY 67