Toyota has decided to stay put in the Philippines after the government said it would receive fair treatment over an illegal strike by sacked assembly workers, the local website reported.

Trade and industry secretary Manuel Roxas II said that the Arroyo government had addressed Toyota's concerns about the recent illegal strike.

Toyota had been assured that the government would implement the law and that a speedy resolution could be expected. He also said that Toyota officials were "comforted" by the government's assurance, the website added.

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Concerned that production disruption in the Philippines would affect its complementation strategy in the region, Toyota had threatened to pull out completely unless the government intervened to ensure fairer treatment in the labour dispute.

The complementation scheme means that different Toyota plants in the region produce specific vehicles which are then exported to the countries which do not produce those models.

Toyota had said that if the strike caused a lengthy shut-down it would be more economical to transfer Philippines production to another country in the region.

Toyota also claimed that the government was not giving it adequate protection from labour harassment. said that the strike that crippled Toyota last March was staged by some 200 legally dismissed workers who were no longer officially connected with the car firm.

Although the strike lasted for just a week, Toyota had previously been affected in February by a work slowdown.

Toyota is the top-selling vehicle brand in the Philippines and employs 1,400 workers.

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