Toyota decides to remain in RP

Toyota Motors Philippines Inc. has decided to stay put in the country after getting an assurance from the Arroyo administration that it would receive fair treatment.

Toyota’s decision to maintain its operations in the country was relayed recently to Trade and Industry Secretary Manuel Roxas II by top officials of the Japanese car firm.

Roxas said yesterday that the Arroyo government addressed Toyota’s concerns about a wildcat or illegal labor strike recently.

Roxas said Toyota was assured that the government would implement the law and that a speedy resolution could be expected. He said the Toyota officials were "comforted" by the government’s assurance.

Toyota had threatened to pull up its stakes in the country following a wildcat strike staged by dismissed workers. The carmaker was deeply concerned that its production here would affect its complementation strategy in the region.

Under the complementation scheme, different Toyota plants in the region produce specific models which are then exported to the countries which do not produce those models.

Toyota expressed concern that if its production line in the Philippines is adversely curtailed over a long period of time, it would be more economical to transfer its local production activities to another country in the region.

Sources said Toyota had initially felt that the government was not giving it adequate safety from labor harassment.

The strike that crippled Toyota last March was staged by some 200 legally dismissed workers.

The workers had been dismissed for just cause, according to Toyota, and were no longer officially connected with the car firm.

However, although the wildcat strike lasted for just one week. Toyota had already been affected as early as February by a work slowdown.

Toyota continues to rank No. 1 in terms of total vehicle sales in the country. The company employs 1,400 workers.