Learning outcomes Case overview/synopsis The focus of this case study is the dilemma faced by the human resources (HR) manager and the top management of Automotive Components and Engineering Auto Parts Ltd concerning a strike by unionized employees. The case starts with the discussion of the dismissal of two workmen after a domestic inquiry for collecting union contributions during work hours. The workmen had a history of similar misconduct and were warned in the past. The case then delves into the strike by 40 Centre of Indian Trade Unions (CITU) members demanding reinstatement, while rival Indian National Trade Union Congress members continued working. Despite management’s efforts to resolve the issue through communication and official notices, CITU persisted with the strike and later approached the deputy commissioner of labor and the courts. However, the authorities ruled the strike unjustified, and management withheld salaries and benefits from striking workers, intensifying internal union pressure. Caught between losing credibility and maintaining solidarity, the CITU struggled as workers faced financial hardship. The situation reached a tipping point after 45 days when management issued show-cause notices to the striking workers, signaling potential mass dismissals. With no legal or political support and mounting pressure from its members, the union faced the following tough choices: withdraw the strike and risk losing face, or escalate further and risk widespread job loss. The case highlights the tension between discipline and industrial peace, the complexities of union politics and the evolving landscape of labor relations in India’s growing manufacturing sector. Complexity academic level This case is written to make the students understand various rules and regulations set by the government to ensure industrial peace, legal framework and obligations to be followed by management and union for redressal of grievances in an industry; labor law connected with strikes, lockouts and punishment to workmen in an industry. These are day-to-day legal requirements for an HR professional to know in any industrial establishment or organization. Subject code CSS6: Human resource management.
Singh et al. (Tue,) studied this question.