Workers at two Bangalore factories run by Toyota’s subsidiary in India have been locked out of the plants after a series of talks stretching back 10 months on wage settlements failed to reach an agreement.
Management at Toyota Kirloskar Motor locked out the workers on Sunday night over allegations of sabotage at the plants, the first of which opened in 1997. Production has been disrupted for the past 25 days.
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“The management and the union have been discussing the charter of demands for the period FY14 for the past 10 months. As a bipartite agreement was not reached, the Karnataka Labour Department has conducted seven tripartite meetings to reach a settlement. But the conciliation efforts have not yet resulted in an agreement, leading to the lockout,” Toyota said in a statement.
Toyota claims the union instigated deliberate stoppage of the production line, threatening supervisors and continuously disrupting business. “In this background, the company is left with no other option but to declare a lockout to ensure the safety of its workers and management personnel,” the statement concluded.
Toyota Kirloskar Motor is a joint venture between Toyota, which has an 89% stake, and Pune-based Kirloskar Group. Set up in October 1997, the two plants at Bidadi near Bangalore, employ over 6,400 people and have an installed annual capacity of 3.1m units.
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By GlobalData
