Toyota Cuts Working Hours and Pay

Only available on StudyMode
  • Download(s) : 7
  • Published : April 12, 2009
Open Document
Text Preview
Toyota cuts working hours and pay
Carmaker Toyota says that staff at its UK factories will have their pay and working hours cut by 10%. The cuts will take effect on 1 April and will last for one year. They affect 4,500 staff at plants in Burnaston, Derby, and Deeside, Flintshire. Toyota said the measures would allow the company to "maintain employment in this difficult period". The cuts come as motor industry representatives meet in London to discuss a £2.3bn support package Carmakers and suppliers have yet to receive any funds from the Automotive Assistance Programme, which was announced in January. The scheme has now been approved by the European Commission and industry figures are due to find out how to apply for loans or guarantees. The funds are linked to helping firms become greener, more innovative and productive. Carmakers have been forced to announce cost-cutting measures, including reducing production, freezing pay and stockpiling thousands of vehicles, in the face of a sales slump across Europe. More than 3,000 UK redundancies have been announced in recent months, with parts suppliers also hit hard. Toyota employs 3,900 workers at Burnaston, where the Avensis and Auris are made, and 570 at Deeside. It has already cut 200 temporary jobs and opened a voluntary redundancy scheme last week. Those who are eligible can apply for a quotation to see how much of a pay-off they would receive. The company said the scheme, which it calls "voluntary release", was requested by its employee representatives, and it has no target for how many people are expected to leave. Annual pay increases and management bonuses have been scrapped. Toyota has already said it will post the first group-wide annual operating loss - totalling more than £3bn - in its 70-year history. COMMENT

I personally think that the London talks would bring vital stability to the car industry sector. If the talks run smoothly as plan, it will help car companies apply for the EU-backed...
tracking img