Strongly backed by the Toyota values and principles, both parties expressed commitment to work based on philosophy of Mutual Trust and Responsibility.
BENGALURU (India CSR): Toyota Kirloskar Motor (TKM) has reaffirmed its commitment to employee wellbeing, competitiveness, and mutual respect through a new Memorandum of Settlement (MoS) with its Employees Union. Signed on July 24, 2024, this agreement aims to foster a positive work environment and enhance overall company growth.
Key Provisions of the Settlement
The MoS, addressing the Charter of Demand for fiscal years 2024-2026, was signed in the presence of Dr. Manjunath G, Additional Labour Commissioner, Government of Karnataka, TKM management, and union representatives. It includes several benefits aimed at improving employee welfare:
- Wage Increase: Direct wage increase of Rs.16,000/- for Mid-Batch members over two years, resulting in a total CTC increase of Rs.19,500.
- Bonus: An ex-gratia/bonus of 25% (90 Days) annual gross salary.
- Medical Insurance: Expanded coverage for employees and their dependents.
- Interest-Free Loan: Rs.8 Lakhs loan for car purchase.
- Workplace Improvements: Continuous enhancements for safety and ergonomics.
- Flexibility and Productivity: Ongoing efforts to boost flexibility and productivity, essential for success in the automotive industry.
Commitment to Mutual Trust and Respect
Dr. Manjunath G praised the collaborative efforts, stating, “Toyota Kirloskar Motor and the Employees Union have set a remarkable example for industrial relations in Karnataka. Their commitment to mutual trust and respect has led to a mutually beneficial settlement, contributing to the overall growth of the state.“
TKM’s Dedication to Employee Wellbeing
G. Shankara and B. Padmanabha, Executive Vice Presidents at TKM, reiterated the company’s dedication to a positive work environment, good work-life balance, and employee growth. “Over the past 25 years, TKM has valued and respected each member’s opinion and contribution. Our joint efforts will take a big leap with the new Plant-3, creating more job opportunities in Karnataka and ensuring mutual growth,” they stated.
Employees Union’s Perspective
S R Deepak, President, and Ravi R, General Secretary of the Employees Union, expressed their satisfaction with the settlement. They highlighted the record-setting nature of this agreement, achieved in just three months, and the 90 days bonus as a significant motivator for employees. “This settlement will create a harmonious work environment and promote the progress of both the company and its employees,” they said.
This new settlement between Toyota Kirloskar Motor and its Employees Union underscores a shared commitment to competitiveness, holistic employee wellbeing, and mutual respect, paving the way for sustained excellence and growth.
Overview of Toyota Kirloskar Motor (TKM)
| Equity Participation | Toyota Motor Corporation (Japan): 89%, Kirloskar Systems Limited (India): 11% |
| Number of Employees | Approx. 6,000 |
| Land Area | Approx. 432 acres (approx. 1,700,000 m²) |
| Building Area | 74,000 m² |
| Total Installed Production Capacity | Up to 3,42,000 units |
Overview of TKM 1st Plant
| Established | October 1997 (start of production: December 1999) |
| Location | Bidadi |
| Products | Innova HyCross, Innova Crysta, Fortuner, Legender |
| Installed Production Capacity | Up to 1,32,000 units |
Overview of TKM 2nd Plant
| Start of Production | December 2010 |
| Location | On the site of Toyota Kirloskar Motor Private Limited, Bidadi |
| Products | Camry Hybrid, Urban Cruiser Hyryder, Hilux |
| Installed Production Capacity | Up to 2,10,000 units |
(India CSR)
