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Toyota to lift lockout from March 24th

Toyota to lift lockout from March 24th

Snapshot: Toyota Kirloskar has agreed to lift the lockout and resume production from March 24th at its Bengaluru facility

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Totota Kirloskar Motors (TKM) has finally agreed to resume its production in Bengaluru facility, after an impasse with union workers over wages led to a temporary lockout and halt in manufacturing.

"The Company has submitted to the Deputy Labour Commissioner that considering the inclination and in the interest of majority law abiding team members, we have decided to lift the lock out implemented vide notice dated March 16, 2014, TKM said in an e-mailed statement.   

Workers can return to their posts after signing a simple undertaking on good conduct, the company said in the statement.

The Indian subsidiary of Toyota Motor Corp of Japan, declared a lockout on the March 16th, following the failure of talks between the management and the union over wage negotiation. The union is demanding a wage hike of Rs 4,000 as against Rs 3,050 proposed by the management.

Commenting on the development Toyota Kirloskar Workers Union (TKMEU) general secretary R Satish said, “They are talking about some conditions. We will have to go through the conditions in detail, we will also have to take legal opinion on these conditions and then we will take a final call on Saturday about next step."

TKM has been building cars at one of the locked-out plants since 1997 including the Fortuner and Innova, and at the other since 2010 including Etios and Corolla Altis. In first two months of this year, the company witnessed decline of 19 percent in its sales. 

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