Japan's Toyota to end lock out at Indian plants

MUMBAI Thu Mar 20, 2014 10:41pm IST

A Toyota Motor Corp logo is pictured on the wheel of a car at its showroom in Tokyo February 4, 2014. REUTERS/Yuya Shino/files

A Toyota Motor Corp logo is pictured on the wheel of a car at its showroom in Tokyo February 4, 2014.

Credit: Reuters/Yuya Shino/files

Stocks

   
Coal Mining In The Punjab

Coal Mining In The Punjab

In Choa Saidan Shah miners dig coal with crude pick axes and load it onto donkeys to be transported to the surface earning a team of 4 workers around $10 to be split between them.  Slideshow 

MUMBAI (Reuters) - Toyota Motor Corp's (7203.T) Indian unit has decided to end a lock out at its two local vehicle plants, five days after declaring a suspension of production due to a pay dispute with workers.

The factories near Bangalore are Toyota Motor's only vehicle plants in the world's sixth-biggest auto market, where the Japanese manufacturer generates just a sliver of its global sales.

Toyota Kirloskar Motor Private Ltd (TKM), the world's biggest car maker's Indian unit, said on Thursday workers could return from Monday after signing an undertaking on good conduct. It did not elaborate.

The company earlier on Thursday said it had suspended some workers for misconduct at its plants. It did not say how many workers were suspended.

On Sunday, TKM said some workers had disrupted business as the management, labour union and local government negotiated wages.

Suspension of work at the plants resulted in a daily production loss of 700 cars.

Toyota's India plant closures followed labour unrest at other India car plants in recent years, including a 2012 dispute at Suzuki Motor Corp's (7269.T) unit Maruti Suzuki India Ltd.

A riot at Maruti left one person dead and over 100 injured, and resulted in a $250 million month-long production loss.

Other foreign carmakers such as Hyundai Motor Co (005380.KS)

and Honda Motor Co Ltd (7267.T) have also seen labour unrest at their India plants in recent years, forcing industry groups to renew calls for the government to overhaul archaic labour laws.

(Reporting by Aradhana Aravindan; Editing by Sumeet Chatterjee and Mark Potter)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Diplomacy

REUTERS SHOWCASE

Maruti Results

Maruti Results

Maruti Suzuki says profits helped by sentiment, not growth.  Full Article 

Tracking the Monsoon

Tracking the Monsoon

Monsoon turns patchy after revival.  Full Article 

ICICI Profit Up

ICICI Profit Up

ICICI Bank Q1 net profit up 17 percent, beats estimates.  Full Article 

Pharma Sector

Pharma Sector

FDA raises concern over drug production process at Cadila  Full Article 

Coal India

Coal India

Some Coal India mines may be run by foreign firms - minister  Full Article 

Fuel Prices

Fuel Prices

IOC to cut petrol prices by 1.5 pct from Friday  Read 

Economic Pulse

Economic Pulse

India's infrastructure output growth hits 9-month high in June  Full Article | Related Story 

Joint Bid

Joint Bid

ONGC, Oil India bid $1.5 bln for stake in Murphy Oil's Malaysia assets - sources  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage