Waiting period cut for Toyota cars

Dispute over wage raise pending at tribunal; firm offers to settle issue out of court

Even as the standoff between Toyota Kirloskar Motor (TKM) and its employees union ended with effect from April 22, the dispute over wage renewal has been referred to the Industrial Disputes Tribunal for adjudication. However, the company  restored normalcy in production at both of its passenger car manufacturing plants at Bidadi, 35 kilometres from here.

“We have restored normalcy in car production and 4,200 group eight workers have returned to work at our plants. We have initiated departmental inquiry on 30 employees who were suspended on disciplinary grounds. The matter over wage negotiation is pending in the tribunal and its order is binding on both the management and workers’ union,” said Shekar Viswanathan, vice chairman  and wholetime director, TKM.

TOUGH TIMES

• Production of passenger cars has crossed over 700 units a day from about 300-350 units during the recent strike period between March and April
• The waiting period had gone up close to two months after the workers had resorted to go-slow strike at its plants
• The employees union had demanded a wage raise of Rs 8,000 a month and scaled it down subsequently to Rs 4,000

He said the production of passenger cars has crossed over 700 units a day from about 300-350 units during the recent strike period between March and April.

While the tribunal order is yet to come, the management is open to settle the matter out of court if the workers are willing to accept the wage increase offered by the management at any point in time, he said.

The raise in wages for 2013-14 is pending for all its workmen.

“We have raised our wage increase offer to Rs 3,100 a month as suggested by the government of Karnataka. If the workers are ready to accept our offer, we are ready to end the dispute amicably,” Viswanathan told Business Standard.

The Toyota Kirloskar Motor Employees Union (TKMEU) had demanded a wage raise of Rs 8,000 a month and scaled it down subsequently to Rs 4,000 per month during the negotiations. Both the management and employees have held wage talks for about 40 times in the last year. The workers, however, were not ready to accept anything below this level, TKMEU had told the labour commissioner during conciliation meeting in April.

Meanwhile, with the restoration of normal production, Toyota India is working actively to bsring down the waiting period to three weeks from close to two months. The waiting period had gone up to close to two months after the workers had resorted to go-slow strike at its plants. Subsequently, the company had imposed lockout on March 16, 2014 in order to avoid any damage to its staff and machinery. It lifted the lockout on March 24, 2014 but employees did not resume work as they objected to signing a good conduct undertaking as demanded by the company and pressed for withdrawal of suspension orders.

Later, the government of Karnataka prohibited the lockout illegal and asked both the management and the Union to restore normalcy in operations. The workers returned to work on April 22, 2014.

 

TKMEU General Secretary R Satish had said that they would continue to contest with management on issues including wages and suspension of 30 employees.

Though the company has refused to divulge details of its loss during the months of March and April, it is said to have lost production of over 2,000 units.

Toyota manufactures Innova, Fortuner at its first plant and the second plant produces Corolla Altis, Etios, Etios Liva, Camry and Camry Hybrid. It has an installed capacity of 310,000 units at both its plants. In 2013-14, Toyota sold 156,087 units, a decline of 17 per cent over the previous fiscal.