BackToyota declares lockout in Bidadi facility amid worker unrest
The lockout comes days after the automaker expressed relief over a hint of revival in car sales in October after a prolonged slump due to covid-led lockdownToyota has two plants spread over 432 acres in Bidadi where it manufactures its flagship Innova, Fortuner and Camry Hybrid among other vehicles
PremiumBENGALURU : Car-maker Toyota Kirloskar Motor (TKM) on Tuesday said it has declared an indefinite lockout at its Bidadi manufacturing facility, just outside Bengaluru, following worker unrest.
Workers had resorted to strike after one employee, who the company said has a "systemic record of misconduct", was suspended after he was involved in a breach of discipline.
TKM has two plants spread over 432 acres in Bidadi where it manufactures its flagship Innova, Fortuner and Camry Hybrid among other vehicles. The two plants have a total installed production capacity of 310,000 units and 6500 employees.
"Despite our efforts to maintain a cordial and healthy working environment based on active employee participation and maintaining desired level of discipline in the plant, one of the employees who has a systematic record of misconducts was again involved in breach of discipline and unacceptable behaviour which is in violation of law and service policy of the company. Accordingly, he has been placed under suspension pending enquiry in line with the company rules and applicable laws," a company spokesperson said.
The lockout comes days after the automaker expressed relief over a hint of revival in car sales in October after a prolonged slump due to covid-led lockdown.
Two and four-wheeler manufacturers have been running their production lines to near record levels, expecting robust retail sales during the Navratri and Diwali festivals. Increased demand in rural markets and customer preference towards personal mobility led to a swift recovery in car sales post easing of lockdown measures in May.
In October vehicle makers like Maruti, Hyundai and others reported record wholesale dispatches to replenish vehicle inventory before Diwali an Dhanteras festivals in November. Toyota also reported a 52% year on year increase in vehicle wholesale to 12373 units on the back of encouraging feedback for its new compact SUV, urban cruiser.
The company said that the employees union had resorted to a strike which it termed "illegal". TKM said that due to the current volatile atmosphere, it has declared a lockout until further notice.
If the deadlock remains, it is likely to weigh in on revival of sales ahead of Diwali, a busy sales season for automobile makers.
"Our treasurer (Umesh Gowda Alur) had gone to speak to workers on their grievances inside the factory while the management announced his suspension pending inquiry citing some made-up charges," Pradeep.N, the vice president of the workers union said.
The union, that has 3460 members, have decided to camp outside the factory premises after they were asked to vacate from inside the campus where they have been protesting since Monday afternoon.
The company had decided not to allow workers into the factory for the second shift on Monday and announced the lockout on Tuesday, workers alleged.
Toyota has seen a fair share of worker unrest that has led to full-blown protests in the past as well.
Alur, according to the company and some workers, has in the past spoken out against the management which hasn't been taken to kindly.
The labour department has called both sides for conciliatory meetings on Tuesday.
Malyaban Ghosh from Mumbai contributed to this story.
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