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

   

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)

  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

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