The Japanese auto giant and the world’s auto leader Toyota is far from resolving its issue with its workers in India. Toyota Motor’s Indian presence, Toyota Kirloskar Motor (TKM) has been having a rift with its workers union over the issue of wage hike, which led to the company locking out both its manufacturing plants that are located in Bidadi, close to Bangalore. Now, even after the company has lifted its 8-day lockout, the workers are not cooperating to resume work. Thus, TKM has revealed to the media on 25^th of March that the company has hired 1,000 contract workers in order to resume production in its factories production.

The TKM workers and management are at dispute over pay hike disagreement that has been pending for about a year now. The workers refused to resume work as the management asked them to sign a good conduct agreement.

A company official, who requested anonymity said as the company’s regular workers did not resume performing their duties, the company is utilizing the services of 1,000 contract workers in order to re-start production.

Toyota Kirloskar Motor also issued an official company statement that confirmed the fact that it was hiring 1000 contract workers to resume work in the company’s twin car factories.

The facilities produces around 3,10,000 vehicles per year that include the Toyota Camry sedan, the Corolla, Etios and Liva for the domestic car market.

TKM said that the workers could return to the factories from 24^th March provided they sign a good conduct assurance, which they refused to do. The company had also suspended around 30 workers for deliberately halting production and threatening the supervisors.

Toyota’s workers union has demanded a wage hike of minimum Rs.4,000 per month, while the  agreeing to offer Rs. 3,050 minimum hike, as the company is experiencing low sales due to the market slowdown that is continuing for a second consecutive year.

The workers union president of TKM, Prasanna Kumar said that the workers refused to sign the good conduct assurance as the company falsely accusing some employees for misconduct that led to the lockout.

For the time being, TKM apart from the 100 contract workers is also taking help from 2,000 apprentices and other managerial staff to help with the production process. Toyota is definitely being cautious in its acts, which is reasonable given the violent labor unrest that really disturbed India’s leading auto leader Maruti Suzuki 2 year’s back. In 2012, the workers threw a violent protest against Maruti Suzuki in one of its plants that damaged many cars and took the life of a company manager, while over 100 people were injured. This incident severely damaged the car maker’s sales rates and market shares.

Toyota Kirloskar had asked for help from the Karnataka state government, while the company’s workers union pleaded with the state’s labour ministry. Both these bodies came into action resulting in the lifting of the lockout, but the issue is far from being resolved as yet.

Tagged: Toyota Cars