Toyota Kirloskar Motor is lifting the lock-out at its Bidadi plant on the outskirts of the city, effective Saturday, company sources said.
During the lock out period, conciliatory efforts initiated by the labour department to end the stalemate had failed. Toyota Kirloskar Motors rejected suggestions of keeping the dismissal of the three employees in abeyance as a condition for resuming work in the plant.
Striking employees have been holding dharna and taking out processions in support of their demands.
According to TKM, the lock out was declared after the striking workmen threatened to blow up the LPG storage tanks located in the factory premises, endangering the lives of people and property.
Toyota started its Indian operations in 1997 with an investment of Rs 700 crore. It currently has a production capacity of 60,000 units annually.
Employees' union to decide response
The employees' union of Toyota Kirloskar will hold a meeting later on Friday to decide its response to the company's announcement of lifting lock out and resuming production at its Bidadi plant on the city outskirts, a union official said.
Joint secretary of employees' union R Ravi said: "We have not given an undertaking to the management on withdrawing our strike," he said. "The general body will take a decision."
There are 2,375 employees on the rolls of TKM of which about 1,400 are union-affiliated workers, he said.