Toyota Suspends Production in India as Wage Talks Sour

Toyota Motor Corp. says it has barred workers from two factories outside Bengaluru, India, after claiming employees sabotaged production and threatened plant managers.

Toyota normally builds about 700 vehicles per day at the two facilities through its 15-year-old Toyota Kirloskar Motor Pvt. Ltd. venture. The unit, which employs more than 6,400 people, makes the Camry, Corolla and Etios sedans.

The lockout comes after months of wage fruitless negotiations. Toyota says it will continue talks with its union. The company did not say when production may resume.

The labor strife in the country has been escalated by resentment over the treatment of short-term contract workers. Temporary workers are widely used by many companies to avoid India's rigid labor laws, which provide full-time workers job security and benefits.