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Toyota halts car production in India amid labour row Toyota halts car production in India amid labour row
(about 2 hours later)
Toyota, the world's largest car maker, has halted production at its two factories in India amid a labour dispute regarding wages.Toyota, the world's largest car maker, has halted production at its two factories in India amid a labour dispute regarding wages.
In a statement, Toyota said it was left "with no other option but to declare a lockout of the premises to ensure the safety of its workers and management personnel".In a statement, Toyota said it was left "with no other option but to declare a lockout of the premises to ensure the safety of its workers and management personnel".
Located outside Bangalore, the two factories produce around 700 cars a day.Located outside Bangalore, the two factories produce around 700 cars a day.
The lockout will affect 6,400 workers.The lockout will affect 6,400 workers.
Toyota said that over the past 25 days, "certain sections of the employees have resorted to deliberate stoppages of the production line, abuse and threatening of supervisors thereby continuously disrupting business".Toyota said that over the past 25 days, "certain sections of the employees have resorted to deliberate stoppages of the production line, abuse and threatening of supervisors thereby continuously disrupting business".
Negotiations over a wage increase have been taking place for the past 10 months.Negotiations over a wage increase have been taking place for the past 10 months.
Toyota's sales in India represented about 1.6% of the carmaker's total sales volume last year.Toyota's sales in India represented about 1.6% of the carmaker's total sales volume last year.
The stoppage came as Toyota announced its biggest pay rise in 21 years for its Japanese staff. Pay rises in Japan
The stoppage in India came just a week after Toyota announced its biggest pay rise in 21 years for its Japanese staff.
The average Toyota employee will earn 2,700 yen ($26; £15) more each month, a 0.8% increase from the year before.
Some workers will also receive about 7,300 yen more each month depending on promotions.
The increases were announced in conjunction with other large Japanese firms such as Panasonic and Nissan as part of a co-ordinated effort by Prime Minister Shinzo Abe to boost wages ahead of a planned tax increase, which is set to come into effect in April.