Labour unrest forces Toyota to halt production in India

toyota logoToyota has suspended production at its two car plants in Bangalore 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 (RM215) 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 (RM164) in its last offer following the local labour department’s recommendation.

etios1

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.

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • abuya123 on Mar 19, 2014 at 3:22 pm

    When worker works in anger…. you should worried when purchase car.

    Like or Dislike: Thumb up 16 Thumb down 3
    • Etiosh on Mar 19, 2014 at 4:50 pm

      No wonder Perodua cannot get its new rebadge sedan on time from India…

      But it’s OK rakyat will wait no matter what…for sure it’s better car than Proton GSC or Saga…

      Like or Dislike: Thumb up 5 Thumb down 20
  • Guan Yin Ma (Member) on Mar 19, 2014 at 3:51 pm

    Peace come from right understanding.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Denaihati on Mar 19, 2014 at 4:18 pm

    Our local worker is very good never demand like that. Of course a high production lost time.

    Like or Dislike: Thumb up 4 Thumb down 0
  • lokkkkkkk on Mar 19, 2014 at 4:26 pm

    sape nak beli karipap angkat tangan

    Like or Dislike: Thumb up 9 Thumb down 0
  • sick&tired on Mar 19, 2014 at 5:12 pm

    the unrest was caused by workers who are fed up of looking at the toyota etios everyday! their eyes couldn’t take it anymore!

    Like or Dislike: Thumb up 22 Thumb down 0
    • dugong on Mar 20, 2014 at 12:48 am

      Not only that. They also know that toyota makes a big fat profit and only pay them peanuts. Using lowest grade materials n tech while selling at top premium prices. Who won’t be fed up and pissed off?

      Like or Dislike: Thumb up 5 Thumb down 0
  • Served you right Toyota…for given us the crappy product with premium price. Automotive industry whether in Indonesia, India, Australia and even Malaysia gives lower than average salary. Not a very good idea to join this industry.

    Like or Dislike: Thumb up 16 Thumb down 1
  • working at and driving Toyota is your honor. non of the brand except Toyota worth for you to drive.

    Like or Dislike: Thumb up 0 Thumb down 14
  • armandd on Mar 19, 2014 at 7:14 pm

    In Malaysia, this trend of riot and unrest is uncommon. But it will slowly become more common if demonstrations like bersih and reformasi are allowed.

    Like or Dislike: Thumb up 14 Thumb down 3
    • Tracks on Mar 20, 2014 at 8:30 am

      Your facts are not entirely correct. The other protest and riots by other parties that occurred but less publicize are not mentioned. Also, in our history, there is always one dark incident.

      Like or Dislike: Thumb up 3 Thumb down 2
  • EnergyAnalyst on Mar 19, 2014 at 7:29 pm

    Unrest caused by failed salary negotiation? Hmmmm…
    Stop being stingy lah Toyota , the way you cut so much cost and still sell high price based on brand value alone, you should give a little bit back to these poor Indian worker mah. Sigh….

    Like or Dislike: Thumb up 15 Thumb down 0
  • BLT Club (Member) on Mar 19, 2014 at 8:56 pm

    They probably got fed up assembling sh1tty cars…

    Like or Dislike: Thumb up 10 Thumb down 0
  • Facts pls on Mar 19, 2014 at 9:45 pm

    Aiyo ppl get ur facts right la. The blood suckers are umw, not Toyota. See how perfect specs Toyota give in Taiwan, US or even singapore.
    In the end, blame our uncle aunties here that keep supporting them so that they can be even greedier. Nod thanks to the umw crony salesmen.

    Like or Dislike: Thumb up 13 Thumb down 0
    • Albert Lee on Mar 20, 2014 at 9:43 am

      Mr.Facts pls,may I ask,what is the ultimate holding company of UMW? PNB,right.Which ruling party controls PNB? Based on the demographics of Malaysia,the majority race purchase Toyotas.
      It is no point blaming uncles or aunties for buying Toyotas.Don’t tell me not even one of your relatives owns a Toyota.? Even if they buy Protons,Proton is also crony related.
      Mighty AP KING ,Naza is also heavily cronylised.
      Mazda is also crony related.
      UMW or Proton salesmen are only employees earning an honest living,not robbing or money laundering.
      Just buy the dream car of your choice according to your financial ability.

      Like or Dislike: Thumb up 4 Thumb down 0
      • My financial ability is can afford RM112K (30% reduction of Camry)…my financial OK…only Camry price not ok…

        Like or Dislike: Thumb up 0 Thumb down 1
  • jolly_idiot (Member) on Mar 19, 2014 at 11:24 pm

    Poor toyota suffering from financial tightness after the hiroshima tsunami. Then the thailand flood. Then now india strike. Expect to see more cost cutting and throat cutting product from toyota as a move to recover their financial lost

    Like or Dislike: Thumb up 2 Thumb down 0
  • Black Dog on Mar 20, 2014 at 3:25 pm

    Unions are not helping but actually destroying people’s livelihood. (It’s also one of the reason our MAS loses money).

    That’s why certain countries like India or Africa can never progress. It’s always about supply and demand. Case in point: China. Many years ago, many stories abound that many workers work without salary at all, just a place to stay and food to eat. Now with their economy doing well and the skills they have, they can demand higher salaries.

    You can ask for all the rights you want, at the end of the day, it’s still about supply and demand.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Black Dog on Mar 20, 2014 at 3:27 pm

    I repeat, no salary but just a place to stay and food to eat. How many can do that?

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required