CHENNAI, 30 July 2024: In the spirit of further nurturing employee welfare, societal progress, and overall company growth, Toyota Kirloskar Motor (TKM) today announced the signing of a Memorandum of Settlement (MoS) on July 24th, 2024 with its Employees Union. The agreement aims to cultivate a positive work environment founded on the principles of “Mutual Trust and Respect” for all stakeholders.
The MoS, encompassing the issues outlined in the Charter of Demand for the fiscal years 2024-2026, was formally ratified before Dr. Manjunath G, Additional Labour Commissioner, Government of Karnataka, senior TKM management, and the Office Bearers & Executive Committee members of the TKM Employees Union.
Strongly backed by the Toyota values and principles, both parties expressed commitment to work based on philosophy of Mutual Trust and Responsibility towards promoting maximum flexibility, productivity, good work-life balance, to ensure the making of highest quality of products and services. Key provisions of the settlement include:
- Direct wage increase of Rs.16,000/- (for 2 years) for Mid-Batch members, resulting in a Cost to Company (CTC) increase of Rs.19,500 for over a period of two years.
- Ex-gratia/Bonus of 25% (90 Days) annual Gross salary.
- Expansion of Medical Insurance coverage for employees and their dependants.
- Interest free loan of Rs.8 Lakhs for Car purchase, among other benefits.
- Continuous improvement of workplace to enhance workplace Safety and ergonomics of employees.
- Sustained efforts from Union and Team Members to continue with flexibility and productivity improvement which is essential for success in Automobile industry.
Dr. G Manjunath, Additional Labour Commissioner, Government of Karnataka, who presided the signing of the settlement said “We extend our heartfelt appreciation to Toyota Kirloskar Motor and the Employees Union for their commendable efforts in smoothly arriving at a mutually beneficial settlement. The seamless coordination by both the parties has set a remarkable example for Industrial Relations in the State of Karnataka. He also appreciated Toyota’s Philosophy of Mutual Trust & Respect which emphasise the importance of contribution by Employees and thereby achieving the successful results leading to recognition by Management with appropriate benefit in a timely manner. We urge TKM and its Employee Union to continue working together towards sustained excellence and contribute to the overall growth of Karnataka.”
Speaking on the occasion, Mr. G. Shankara, Executive Vice President, Finance & Administration and Mr B Padmanabha, Executive Vice President, Manufacturing , Toyota Kirloskar Motor reiterated that Toyota Kirloskar Motor remains steadfast in their commitment to create a positive work environment, provide a good work life balance as well as ensure well-being and growth of the employees. Over the last 25 plus years in the country, TKM has always worked together with the people to ensure each member’s opinion and contribution are deeply valued & respected. Further the people are the most valuable assets for which the Company’s endeavour is to foster a stable environment and world-class working conditions balanced with the progress of the company’s vision of “Producing Mass Happiness for all”. Due to commendable joint efforts by both Union and Management, TKM will take a big leap with the introduction of new plant (Plant-3) within the same campus which will create more job opportunities in the State of Karnataka and ensure to grow India and grow with India.
Mr. S R Deepak, President and Mr. Ravi R, General Secretary of Toyota Kirloskar Motor Employees Union expressed happiness over the successful signing of the Memorandum of Settlement with the Company. As a people centric company, TKM has always prioritized the welfare and growth of its employees. For the first time in the history of TKM with joint efforts of Union and Management they have set the record for best settlement in the History of TKM within fastest duration of 3 months. Also the Management has recognized the contribution of employees by announcing 90 days bonus (25% wage of annual gross salary) and this will help the Union to motivate their employees to do more and contribute to create a harmonious work environment and progress of both Company and its employees.