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Rediff.com  » Business » Toyota losses pegged at Rs 70 cr

Toyota losses pegged at Rs 70 cr

Source: PTI
January 17, 2006 13:58 IST
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The strike and subsequent lock-out at the factory of Toyota Motor Corporation in Bangalore has resulted in losses of around Rs 70 crore (Rs 700 million) to the company, even as it has started partial production by engaging senior staff.

Losses for the company, which on Monday refused to compromise on the workers' demand to reinstate three dismissed employees, are expected to mount if the deadlock between the management and the workers continues.

"We have recovered some production at the factory, about 30 per cent, by involving supervisors and managers," Toyota Kirloskar general manager (corporate planning) A R Shankar told PTI.

He said following the resumption of production, about 30 vehicles were being rolled out daily even though the normal levels are about 92 units.

"We are now planning to jack up production and mobilise some people from office like group leaders and managers," Shankar said.

He said the estimated loss for the company due to break in production was about Rs 8 crore (Rs 80 million) per day. "It will affect sales in the long run," he said, when asked whether supplies to dealers will be hit.

Talks between the company management and the striking workers failed on Monday with the company refusing to budge from its stated position. "There will be no compromise on discipline," Shankar said.

The reconciliation meeting was organised by the Labour Commissioner, after studying the proposal made by the Employees Union.

In its reply, the management stated that the dismissals are after thorough legal process following "the principle of natural justice."

"An independent enquiry was held, and the charges were proved beyond reasonable doubt. Therefore there is no question of keeping the dismissals in abeyance as demanded by the union," the company said, indicating it was in no mood to relent.

TKM is a joint venture between Japan's auto major Toyota and India's Kirloskar group and produces cars like 'Innova' and 'Corolla'.
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