TOKYO — Toyota has shut down production at its two auto assembly
plants in India and locked out 6 400 workers amid testy wage negotiations.
Toyota Motor Corporation spokesperson Naoki Sumino said some
workers were disrupting production. There have been no injuries or damage at the
plants.
The lockout came on Monday following negotiations that began in
April last year, and arbitration talks that failed earlier this year. The two
plants in Bangalore produce 310 000 vehicles a year, including the Innova van,
Fortuner sport-utility vehicle, Corolla sub-compact and Etios models.
Toyota has been eager to expand in India with sales of its
affordable models.
While bad news for India, the union unrest is relatively good news
for South Africa, as it puts into perspective the seven-week-long production
disruption in the last quarter of 2013.
CEO of Toyota, Dr Johan van Zyl said at the recent rolling-off
ceremony of the new Corolla at Toyota’s Prospecton plant that the strike had
damaged SA’s reputation as a trustworthy and stable supplier of vehicles. “We
will have to work hard to find a mutually beneficial solution with our labour
partners to stabilise production for both the local and export market.”
