The world's largest car manufacturer has decided to halt all production at its two factories in India while a pay dispute is negotiated with the company's employees.
Toyota Kirloskar Motor, the company’s Indian unit, has shut down its only two plants outside Bangalore, which produce up to 700 cars per day.
The company issued a statement, saying some workers over the past 25 days had disrupted business as the management, labour union and local government negotiated wages. The wage negotiations have been in dispute for about 10 months.
“The company is left with no other option but to declare a lockout of the premises to ensure the safety of its workers and management personnel,” TKM said. “Certain sections of the employees have resorted to deliberate stoppages of the production line, abuse and threatening of supervisors thereby continuously disrupting business”.
The lockout is expected to effect more that 6,400 workers.