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11/03/2009
Toyota To Cut Pay And Working Hours
Carmaker Toyota has announced it is to cut working hours by 10% at two UK factories.
The cutbacks, which will also affect pay for the workers at its factories in Burnaston near Derby and Deeside in north Wales, will start next month and last up to one year.
Around 4,500 staff at the factories are to be affected by the cuts, which Toyota say would allow the company to "maintain employment in this difficult period".
It has already cut 200 temporary jobs and opened a voluntary redundancy scheme last week.
A statement from the company said: "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%.
"This work share arrangement will take effect from April 1 and will be in place for one year, during this time we will continue to monitor the market and company situation closely.
"We believe the measures we have announced give us a greater opportunity to maintain employment through this difficult period."
The announcement was made as car company officials, bankers and union leaders arrived at the London headquarters of the Business Department to discuss the Government's assistance programme for the industry, originally announced by Business Secretary Lord Mandelson in January.
The talks are due to help car companies apply for the EU-backed £2.3 million support package.
Last week the Society of Motor Manufacturers and Traders warned that the Government needs to move faster to help the ailing car industry.
(JM/BMcC)
The cutbacks, which will also affect pay for the workers at its factories in Burnaston near Derby and Deeside in north Wales, will start next month and last up to one year.
Around 4,500 staff at the factories are to be affected by the cuts, which Toyota say would allow the company to "maintain employment in this difficult period".
It has already cut 200 temporary jobs and opened a voluntary redundancy scheme last week.
A statement from the company said: "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%.
"This work share arrangement will take effect from April 1 and will be in place for one year, during this time we will continue to monitor the market and company situation closely.
"We believe the measures we have announced give us a greater opportunity to maintain employment through this difficult period."
The announcement was made as car company officials, bankers and union leaders arrived at the London headquarters of the Business Department to discuss the Government's assistance programme for the industry, originally announced by Business Secretary Lord Mandelson in January.
The talks are due to help car companies apply for the EU-backed £2.3 million support package.
Last week the Society of Motor Manufacturers and Traders warned that the Government needs to move faster to help the ailing car industry.
(JM/BMcC)
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