Japanese automaker has been facing heat from the workers union in Bangalore production facility. The dispute over wage negotiation could not reach a satisfactory conclusion hence Toyota has called a temporary lock-down of the facility till the issue is sorted. Toyota Kirloskar Motor Limited plants in Bidadi are capable of producing about 700 cars a day that account for 3,10,000 cars annually.
Shekar Viswanathan, Vice Chairman Toyota Kirloskar Motor Ltd, said, “We have stopped production in both plants as a precautionary measure to ensure safety of machinery, employees and management personnel. We have lost production of about 2,000 vehicles during the last 25 days due to go-slow tactics by a section of workers in both the factories.” The Japanese car-maker has halted production to avoid any extensive damage to expensive machinery inside the plant. Viswanathan further added, “We have revised our offer to Rs.3,050 from Rs.2,400 per month and are not in a position to give more as we are passing through a difficult period due to declining sales and severe impact from a steep depreciation in rupee against dollar on import of components for our range of models.”
Prasanna Kumar, TKM Employees' Union president, said, “Lockout is illegal as management did not give the 14-day prior notice to us or informed the labor office in advance.” Speaking more about the issue, he added, “Though the management offered Rs.3,050 per employee for fiscal 2013-14 as against our demand for Rs.8,000 due to overall increase in cost of living and increased work load, we are open to negotiate for a mutual sum.”
Both the plants have been have been used for producing Fortuner, Innova, Etios and Corolla Altis for the Indian market. A similar kind of lockout was announced in the year 2006 as a result of conflict that arised due to suspension and dismissal of certain employees back then.
