Toyota Kirloskar Motors has declared a lockout at its factory in Bidadi, on the outskirts of Bangalore. The lockout was announced on Sunday afternoon after negotiations between the management and workers broke down.
Toyota Motors had dismissed three of its employees after "initiating an independent year-long inquiry" against what it called 'very serious misconduct.'
The management took this step after nearly 1,600 workers went on a flash strike on Friday, bringing production to a halt. A spokesperson for the company said the strike was illegal since a 14-day notice was not given under the Industrial Disputes Act.
The management is expected to take up the issue with the State Deputy Labour Commissioner on Monday and try to find an amicable settlement.
The spokesperson, however, added that under no circumstance would the three dismissed employees be taken back as it has never happened in the history of the company. "On what issues we will come to an agreement with workers is being discussed," the spokesperson added.
However, contradictory statements were coming from the employees' union. They alleged that the employees were not treated properly and the working conditions were not conducive. Regarding the dismissal of the three employees, they said that the enquiry was not carried out properly and dismissals were not the answers for such problems.
Commenting on the incident, PGR Sindia, Karnataka minister for finance, industries and infrastructure, said the government has taken note of the development at the Toyota factory and the labour minister has been asked to call a meeting of both the management representatives and the trade union and work out an amicable solution.
"I am busy with the Pravasi Bharatiya Divas in Hyderabad. On my return to Bangalore on Monday I will persuade the management to address the workers' issues at the earliest," he said.
He added that though the lock-out at the Toyota factory affected the sentiment of the investing community, it will not have any direct bearing on the investment climate in the state. "We will deal with the situation very firmly and solve it soon," he stressed.
Toyota Motors, on an average, manufactures 92 vehicles a day (70 Innovas and 22 Corollas). So far, according to Toyota Motors, the production of 132 vehicles has been affected by the strike, incurring a loss of Rs 8.5 crore (Rs 85 million) as on Sunday night.
The company over the last year sold close to 42,000 vehicles and has so far invested close to Rs 1,600 crore (Rs 16 billion) since it began operations in late 1999 and has a capacity for 60,000 vehicles.
Recently, the company announced a Rs 130 crore (Rs 1.30 billion) expansion plan to take this capacity to 66,000 vehicles. Toyota Motors has been granted a total of 432 acres for its plant, of which it has so far used 120 acres.
Toyota Kirloskar Motors is a 89:11 JV between Toyota and the Bangalore-based Kirloskars. It is estimated that it reported a turnover of above Rs 3,000 crore (Rs 30 billion).
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