"We took the stand that we can't compromise on discipline and the lockout will continue," A. R. Shankar, the company's general manager, told The Associated Press.
The company told the mediator it refused to keep the dismissals in abeyance as demanded by the union, and accused the protesting workers of becoming violent and forcing non-striking workers to take part in the agitation.
Union leaders planned yet another march on Tuesday to put pressure on the government of Karnataka state, of which Bangalore is the capital, to get the dismissals revoked and the factory reopened.
"Now that the reconciliation has failed, it is up to the government to force Toyota to end the stalemate. Otherwise, we may have to think of going to the court," said R. Ravi of the Toyota Kirloskar Motor Employees Union.
He denied the management's charges that workers had indulged in violence.