Toyota India Unit Locks Out Workers at Two Plants as Pay Dispute Drags
March 17, 2014 3:55 PM EST
Toyota Motor Corp's Indian unit has declared a lockout of its workers at two car plants after strained salary negotiations spurred workers to stop production lines.
Toyota Kirloskar Motor (TKM) in a statement said it has locked out workers at the plants near Bangalore since Sunday. It did not state for how long the lockout will continue.
Over the past 25 days, some workers have stopped production lines and disrupted business as the management, labour union and local government failed to reach an agreement over salaries, TKM said.
"The company is left with no other option but to declare a lockout of the premises to ensure the safety of its workers and management personnel," TKM said.
Tokyo-based Toyota Motor spokesman Naoki Sumino said the unit and union will continue holding talks to resolve the issue.
If operations are suspended, that would result in a production loss of 700 vehicles a day, Sumino said.
TKM manufactures vehicles including the Fortuner and Innova at its 1st plant, where production started in 1997. At the 2nd plant, which opened in 2010, it makes cars including the Etios and Corolla Altis.
Toyota is not the first Japanese car maker to be hit by labour relations troubles in India.
In 2012, Suzuki Motor Corp (7269.T) unit Maruti Suzuki India Ltd (MRTI.NS) closed its Manesar plant for a month after a riot that resulted in one death, over 100 injuries and a $250 million production loss.
Most Popular Slideshows
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
- Lunch with the Gods: Pope Francis Eats with Vatican Workers in Cafeteria
- Celebrities Who Got Pregnant Using IVF: Busting the Myths About IVF
Join the Conversation
- Apple iPhone 6 Release Date Update: 6 Most Wanted Feature Upgrades for Next iPhone
- Moto X Android 4.4.4 KitKat Update Guide: Schedule and How to Install
- Twin Malaysia Airlines MH370, MH17 Aviation Disasters Create Phobia Among Travellers
- HTC One M8 Windows Phone to Launch for Verizon; Release Date, Price, Five Fresh Features to Anticipate for New Smartphone
- OnePlus One vs. Moto X+1 – Early Specifications, Release Date and Price Faceoff
- 2014 Ebola Outbreak: ‘Out of control… and Can Get Worse'; Asky Airline Stops Flying to Liberia, Sierra Leone; Liberia Closes Schools
- Galaxy Note 4 Release Date Ahead of iPhone 6 Sept 2014 Debut; Specced-Up but Remains Plastic-Wrapped – Reports