Toyota has suspended production at its two its Indian car plants following stopped production lines and disrupted business brought about by labour unrest. The unrest is a result of failed salary negotiations between the company and the workforce's union, which has spurred workers to stop production lines, The Times of India reports.
On Sunday, Toyota Kirloskar Motor (TKM) issued a lock-out notice at its two manufacturing facilities in Bidadi, Karnataka, following the labour unrest, stating the action was taken to ensure the safety of its workers and management personnel. The company did not state how long the lockout is set to run.
The report says that the union is demanding an average wage increase of Rs 4,000 per month in the negotiations, among other benefits, and has been lobbying on the same for the past 10 months. The management, meanwhile, reportedly tabled an average increase of Rs 3,050 in its last offer following the local labour department's recommendation.
The suspension in production is resulting in a build loss of around 700 vehicles a day. Prior to the forced halt, production loss had amounted to nearly 1,700 units. The Indian assembly outfit builds the likes of the Fortuner and Innova at one plant, and cars such as the Etios and Corolla Altis at the other. The report adds that the Indian unit and union will continue holding talks to resolve the issue.
Toyota isn't the first Japanese automaker to be struck by labour issues in India. Two years ago, Maruti Suzuki India was forced to close its plant in Manesar for a month and endure a US$250 million production loss following a riot in which one person died and over 100 were injured.
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