Lingering labour problems force Toyota Kirloskar to declare lockout

Lingering labour problems force Toyota Kirloskar to declare lockout

The failure of discussions between the labour union and the management of Toyota Kirloskar over wage concerns has led to the lockdown of two Toyota manufacturing plants in Bangalore. For the last 25 days, production work at two manufacturing units, with the combined production capacity of 3,10,000 units has come to a standstill.

In a statement, the Japanese auto major, said that the discussions between the union and the management have been taking place over the last 10 months, but have been unsuccessful each time. Seven tripartite meetings were conducted by the Karnataka state government since both parties could not arrive at a bipartite agreement.

However, since every conciliation effort has bitten the dust, there was no alternative to lockout. The statement also went on to mention that despite the talks being in progress, a certain section of workers at the instigation of the union decided to stop work on the production line on purpose and have been continually disrupting work and threatening supervisors for the last 25 days. In its conclusion, the statement said that considering the situation the company decided to opt for the lockout keeping in mind the safety of its staff. The union, however, could not be reached for their response.

Established in October 1997, Toyota Kirloskar’s two manufacturing plants at Bidadi have 6,400 staff members on the payroll. The plants have the capacity to roll out 3,10,000 cars each year. Located in the suburbs of Bangalore, these two plants are spread over an area of 432 acres. Toyota Kirloskar Motor is a joint venture between the Kirloskar Group based in Pune and Toyota, the largest car manufacturer in the world. Some of the popular cars from this company are the Innova, Etios, Fortuner, Etios Liva, Land Cruiser, Prado, sold in the local market.