Monday, January 3, 2011

what was happened in Toyota ..series of management system

In 1950 there was a major labour dispute at Toyota. The company had continually delayed payment of wages owing to a chronic shortage of funds. The union protested, and in the winter of 1949 the management and union reached an agreement whereby, in return for a 10 percent wage cut, the company promised to stop delaying wage payments and not to fire any employees. However, the delays continued, and in April 1950 the union called a twenty four hour strike. The company countered with a "general request for voluntary resignation" and another 10 percent wage cut. In Japan, it is customary for a company not to fire people. Instead, employees are "encourgaed" in various subtle ways to "voluntary resign". Over the following two months the workers protested with mass demonstrations, rallies at workshops and company housing, and mock courts to "try" the directors and the plant manager. However, Toyota finally won the dispute, and in the end 2,146 employees were fired.

source: S.K, R.D, T.A

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