Toyotas Bidadi plant to resume production from March 24

Team OD Updated: March 21, 2014, 02:20 PM IST

The standoff at Toyota's Bidadi manufacturing facility in Karnataka has ended following an intervention by the Labour Commission. Toyota Kirloskar Motors (TKM) has announced that work will resume at the factory from Monday, March 24, after the workers sign a "simple undertaking on good conduct".

2014 Toyota Etios Liva

Toyota Kirloskar Motors (TKM) had on March 16 instituted a lockout at the factory after talks with workers over wages failed. The negotiations regarding the wages had started nearly 10 months ago with neither party willing to blink on the issue. While the workers demanded an increment of Rs 8,000, TKM management made a Rs 3,050 increment as their final offer. The workers union ahead of Thursday's meeting with the company officials softened their stand and agreed a Rs 4000 pay hike provided the company resumes work in the factory immediately.

Toyota claims that the workers were deliberately stopping the production line and causing unrest on the shop floor, a claim which the union strongly denies.

The statement issued by Toyota Kirloskar Motors (TKM) on Thursday states that they have sent a communication to the Deputy Labour Commissioner saying that the lockout has been lifted. The negotiations over salary is still going on, but TKM has agreed to lift the lockout.

The Bidadi plant employs 6400 employees and has an annual production capacity of 3,10,000 units.

Toyota Kirloskar Motors statement

Toyota Kirloskar Motor's Statement on Lockout - 20th March 2014 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. Consequent to our above decision, the team members are welcome to resume work with effect from Monday, March 24, 2014 after signing a simple undertaking on good conduct. We wish to thank the Govt. of Karnataka for their valuable advice concerning our operation.