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 philstar.com reported.
Trade and industry secretary Manuel Roxas II said that the Arroyo government
had addressed Toyota’s concerns about the recent illegal strike.
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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.
Philstar.com 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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