The Karnataka Labour Commissioner held a meeting today with workers of Toyota Kirloskar a week after Chief Minister BS Yediyurappa stepped in to end the stalemate.
In an interview with Moneycontrol, Akram Pasha, the Labour Commissioner, said: “We met with the workers of Toyota Kirloskar Motor (TKM) today. We have declared that the strike and the lockout are illegal.”
Story continues below Advertisement
On November 13, TKM had suspended 39 members of the union, who, it alleges, were involved in acts of misconduct. They were placed under suspension, pending enquiry. Prior to this, Toyota had declared a lockout at both its plants, located in Bidadi, Karnataka, after the workers called a strike following the suspension of the union’s treasurer early in November.
TKM lifted the lockout on November 19 on State government orders but four days later the company recommenced the lockout after members of the union prevented workers from resuming duty.
“The workers were convinced to lift the lockdown and start working,” Pasha added.
On December 4, TKM began running the plants with limited capacity though the management had earlier reasoned that a minimum of 90 percent of the workforce was required to plant operations smoothly.
Moneycontrol is awaiting Toyota Kirloskar’s comments on the development.
The union, which claims to have the backing of 3,500 workers, is seeking the revocation of the suspension of the suspended employees. A source close to the development said there is merely an 'ego clash' between the workers and management and there are no labour law violations.
On November 24, TKM introduced the facelifted Innova Crysta. The launch came just a day after the company decided to withdraw the lockout, effective November 19.
Story continues below Advertisement
The Innova Crysta, which accounts for 36 percent of its India sales, continues to be produced in limited numbers from one of the plants.
The Yaris, Camry Hybrid and Fortuner are the other models manufactured by Toyota in India. Sources said that only around 100 vehicles were being made at the plants. Vellfire, a premium multi-seater, is a fully imported model. These four models account for about 15 percent of TKM’s India sales.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!