LONDON —

Toyota Motor Manufacturing (UK) Ltd said Wednesday it has agreed with its labor union to introduce a work-sharing arrangement under which workers’ job security will be protected in exchange for 10 percent cuts in basic wages and working hours.
   
The deal to introduce Toyota’s first work-sharing in Europe, which will begin April 1 for one year, will oblige workers to take three days off every two weeks, according to the Burnaston, Derbyshire-based company.
   
Toyota, which has two factories in Britain with a total workforce of some 4,500, produces the Avensis and Auris sedans in the country.

The European Automobile Manufacturers’ Association said Toyota’s sales in January dived 31.5% from a year earlier.
 
“Following extensive consultation with our employee representatives, and with input from all employees, it has been agreed that the best way to secure long term employment is to temporarily reduce working hours and base pay by 10%,” the company said in a statement.
 
“This work share arrangement will take effect from 1st April and will be in place for one year, during this time we will continue to monitor the market and company situation closely.
 
Toyota has already laid off 200 temporary employees in Britain.
 
Peter Tsouvallaris, a Unite representative at Toyota, said workers were showing they would make short-term sacrifices to secure their future.
 
“Any decision to cut wages and working time is never taken lightly, but the agreement we have reached with Toyota will ensure none of our members’ benefits are eroded and that these skilled workers will remain in place and at work ready for when the upturn comes,” Tsouvallaris said.
 

Wire reports

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8 Comments

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  Thenewfront at 06:39 AM JST - 12th March

  GReat work Toyota, make the British working man pay for your poor decisions and lack of planning for the future.

  We need a new car industry nationalised, that doesn't involve untrustworthy foreign scam artists.

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  Scrote at 09:43 AM JST - 12th March

  Given the atrocious rubbish turned out at vast expense by the previous, nationalised British car industry, I'd say that nationalisation is the last thing that's needed.

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  Thenewfront at 09:51 AM JST - 12th March

  The large manufacturers and possibly supermarkets including the car industry should be nationalised so the goods aresold for good value and fat cat bosses don'T rip off the working class anymore.

  The government should demand a meeting with Toyota and ask how they got in this mess, and deal with them accordingly.

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  Lowly at 11:11 AM JST - 12th March

  Worksharing means the workers are sharing the work with each other. like instead of half of them getting fired and half of them staying on at full hrs/ wages. So Toyota said this is howmany cars we'll make we need 70 full time people and the workers say we'll share that work among 100 people. Apparently it's a natnl system in Holland inc. pulblic sector like police and school teachers, and works well with very high employment rates for the country.

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  wanderlust at 03:38 PM JST - 12th March

  Better a 10% pay cut with less work for one year, than no job at all. Though with the full unemployment benefit packages available in the UK, they might prefer no job...

  Now if only the bankers, top executives and other suits would take a pay cut ...

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  herefornow at 04:32 PM JST - 12th March

  How come its OK in Britain, but you'd never see them do it here? Oh, I forgot, doing it here would admit that the Toyota concept of hiring for life, pay based on seniority, etc. is really outdated. And that would shock good old Japan to its very roots.

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  wanderlust at 05:08 PM JST - 12th March

  herefornow - the Unions still retain some power in the UK, and actively seek the best for their members, whereas in Japan they roll over backwards to please management, hence strikes on holidays, protests on days off, etc.. Very few part-time contract workers in the UK, so they have to take care of permanent staff; whereas in Japan, the part-time and contract workers have been fired in their 10,000s to relieve the wages bill. Sony and I think Pioneer have used job-sharing in Japan, but it has only worked in a few divisions.

  And lifetime employment has only ever covered around 25% of the Japanese workforce, the blue-chippers...

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