In the latest report from Global Post, “Japanese carmaker Toyota said employees at its strike-hit complex in southern India returned to work Tuesday [April 22], ending a five-week standoff.” The Bidadi Toyota plant was recently under fire by its own employees. The workers cited pay issues that stemmed from an eight-day lockout that took place back in March.According to the Economic Times, “On March 16, Toyota Kirloskar was forced to declare a lockout at its Bidadi manufacturing unit after it alleged some workers “abused and threatened” its supervisors at the production lines. After five days of conciliatory talks with the state government, the management agreed to lift the lockout on March 24. However, the workers refused to report to work, first citing differences over wage increases. When the management and workers agreed to an annual wage hike of Rs 3,100 a month, workers wanted the management to revoke the clause of signing the good conduct agreement” and also to revoke the suspension of the workers.”
Although a company spokesperson stated that work has returned to normal, recent events at the plant were anything but.
Forbes notes, “The temporary closure [affected] 6,400 employees at two factories in south India run by Toyota Kirloskar Motor. The company’s labor union said the shutdown was illegal.”
Toyota Kirloskar Auto Parts PVT. LTD. (TKAP) is located near Bangalore, India. The plant produces engines, transmissions, axles, and shafts. The plant works together with Toyota Motor Corporation, Japan and Toyota Industries Corporation, Japan, as well as Kirloskar Systems Limited, India. The plant is a local and global supplier of Toyota parts. Although the plant was established in 2002, Toyota Global does not list TKAP on the Toyota Group page on its website.
In a statement on TKAP’s website Managing Director Yuji Hiraoka said, “TKAP is committed to achieve global quality at competitive cost, utilizing the Indian supply base optimally.”
Global Procurement & Supply Chain Professionals Read This…
…Carefully curated procurement & supply chain issues that make you look smart, sent to your inbox every week.
PLUS: Get the FREE Procurement Case Study when you subscribe: “How McDonald’s Overcame Global Supply Chain Obstacles”