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Violence in India (against Honda)
Reuters via Yahoo.com ^ | 7/26/2005 | Adnan Abidi

Posted on 07/26/2005 11:27:41 AM PDT by pganini

GURGAON, India (Reuters) - Violence broke out for a second day in Gurgaon on the outskirts of the Indian capital, New Delhi, on Tuesday after dramatic TV images showed policemen beating hundreds of protesting Honda workers with bamboo sticks.

There were also protests in parliament over the clashes in the upmarket industrial township of in the state of Haryana, which is seen as a symbol of the country's resurgent economy.

Japan's ambassador to New Delhi warned that such incidents would damage India's image for investors.

"This is a disadvantage for India's image as an FDI (foreign direct investment) destination and also this is a negative image for Japanese business," Yasukuni Enoki told reporters.

But a foreign ministry spokesman described the disturbances as an isolated incident, adding: "The legal interest of foreign investors will be fully safeguarded".

The clashes started after workers of Honda Motorcycles and Scooters India Ltd, which is owned by Japan's Honda Motor Co., staged a protest to demand the reinstatement of dismissed and suspended colleagues.

Officials said that after protesters beat up policemen, attacked property and burned an official's jeep, about 100 workers were injured. Media reports and politicians gave a higher figure for the number injured by baton-wielding policemen.

"People were being thrown in the gutter," Vijay Kumar Malhotra, a senior MP of the opposition Bharatiya Janata Party told the Lok Sabha. "The Haryana government should be dismissed."

DISTRAUGHT, ANGRY RELATIVES

On Tuesday, angry relatives threw stones and scuffled with police at a hospital in Gurgaon where some of the injured had been taken, witnesses said.

The police replied with tear gas shells and a cane charge, and elsewhere in the township fought battles with stone-throwing protesters.

"Where is my brother, where is my brother!" screamed a distraught woman. She grabbed a bamboo cane from a policeman and started hitting him before being calmed down by others.

"Shame! Shame!" shouted lawmakers from the opposition as well as the government's communist coalition allies, in parliament.

"This is an atrocious and barbaric attack on workers by the police and reflects the establishment's neo-liberal policy, which is contemptuous of workers' rights," D. Raja of the Communist Party of India told Reuters.

The communist parties shore up the Congress Party-led government headed by reformist Prime Minister Manmohan Singh, who expressed "deep anguish" over the violence.

The communists have called for the police officers involved in the clashes to be dismissed and for a Supreme Court probe.

More than 60 workers were charged with rioting and preventing public servants from doing their duty, an official said.

One analyst said the violence and the lack of simple and clearly enforced labour laws could deter potential investors.

"This issue in the next few days will greatly influence how prospective foreign investors view the industrial relations risk in India," said Saumitra Chaudhuri, economic adviser with domestic credit rating agency ICRA.

(Additional reporting by Surojit Gupta and Nigam Prusty in NEW DELHI)


TOPICS: Crime/Corruption; Japan; News/Current Events
KEYWORDS: fdi; honda; india; japan; violence
I thought India is supposed to be more stable place to invest?
1 posted on 07/26/2005 11:27:43 AM PDT by pganini
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To: pganini

Headline should read: Hindu Hooligans Hinder Honda Honchos


2 posted on 07/26/2005 11:37:31 AM PDT by headsonpikes ("The U.S. Constitution poses no serious threat to our form of government.")
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To: pganini
Stability is relative. India will have minor upheavals, but no major revolution (unlike China, IMHO).

In context, this is related to India's rigid labor laws. It is very hard to fire employees. Honda did that, which is why the uproar. Naturally, the communists saw this as an opportunity to embarrass the government (though they are in coalition at the center, they are concerned about the direction the Congress-led government is taking, and are using this as a wedge). In addition, the opposition politicians also see this as a way to embarrass the government (Indian politicians are the most dispensable commodity on this planet).

Over the long run, what this presages is a change in India's labor laws to approximate what is in the US. But there will be some pain before we get there.
3 posted on 07/26/2005 11:38:54 AM PDT by razoroccam (Then in the name of Allah, they will let loose the Germs of War (http://www.booksurge.com))
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To: headsonpikes

'Hindu Hooligans Hinder Honda Honchos"

High on Hashish, creating havoc and hubris


4 posted on 07/26/2005 11:40:33 AM PDT by razoroccam (Then in the name of Allah, they will let loose the Germs of War (http://www.booksurge.com))
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To: pganini

The problem with the "flat earth" model is that poorly paid workers get up in arms, at times ...


5 posted on 07/26/2005 12:42:06 PM PDT by GOP_1900AD (Stomping on "PC," destroying the"and Left, and smoking out faux "conservatives" - Take Back The GOP!)
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To: headsonpikes

well its got nothin to do with religion.How could u say all the striking employees r hindus?


6 posted on 07/26/2005 12:43:49 PM PDT by thrust
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To: razoroccam

ur post is bang on target.These stupid politicians just need an opportunity to increase their votebanks.I personally feel what the police did was correct and such lathicharges r required against such hooligans who blackmail their bosses.Reformation of labour laws is urgently required to prevent trade unions being formed.

It is this hurdle if crossed will ensure double digit growth.


7 posted on 07/26/2005 12:53:17 PM PDT by thrust
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To: GOP_1900AD

This issue had more to do with trade unions and certain employees who were fired, not got much to do with poor pay.


8 posted on 07/26/2005 12:55:06 PM PDT by CarrotAndStick (The articles posted by me needn't necessarily reflect my opinion.)
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To: headsonpikes
Hindu Hooligans Hinder Honda Honchos

Now that's worth the price of admission! ;-)

9 posted on 07/26/2005 12:55:29 PM PDT by Lost Highway (I don't know what the world may need but a V8 engines a good start for me)
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