PDA

View Full Version : latest corporate news from Toyota...


nakman
02-13-2009, 09:43 AM
From

Toyota Offering Buyouts To 18,000 U.S. Workers

By Tali Arbel, AP Business Writer
Manufacturing.Net - February 13, 2009



NEW YORK (AP) -- Toyota Motor Corp. is reacting to the slump in U.S. auto sales by further cutting North American production, slashing executives' compensation up to 30 percent and offering buyouts to about 18,000 workers.

"We've taken responsible, step-by-step actions to address this issue in recent months, and we hope the new measures will help us adjust while protecting jobs," said Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America in a statement.

The company said Thursday it will cut production days at some U.S. factories in April -- from two to eight days according to the amount of inventory at the particular plant.

Toyota is also instituting a shorter work week at some plants. Affected hourly employees would work eight hours less per two-week period, taking a pay cut with the new 72-hour workweek. Unionized plants in the U.S. and Mexico will not be affected.

The world's No. 1 automaker said the move will begin in April at its auto assembly plants in Indiana, Kentucky and Texas, as well as auto-parts factories in Alabama, Missouri and West Virginia.

"We have decided to introduce the scheme as the auto market in North America continues to deteriorate, and we also have to protect jobs for our workers," said Toyota spokesman Yuta Kaga.

The 30 percent pay drop for executives includes a 5 percent salary cut and the eliminated bonus. Bonuses will be eliminated for all salaried and executive employees -- a group comprising 10 percent of Toyota's 30,000 manufacturing jobs in North America -- while production team bonuses will be reduced.

The company will also offer buyouts to 18,000 workers, but company spokesman Mike Goss said Toyota does not expect many workers to take them.

The buyouts also will not be offered to workers at a Canadian plant, nor unionized plants in the U.S. or Mexico.

The buyout offer consists of 10 weeks of pay, plus two weeks of pay for every year of service, plus $20,000. It will be the company's first North America-wide buyout offer.

The company will also eliminate salary increases for the "foreseeable future." Toyota, which expects its first annual net loss this year since 1950, had previously frozen North American hiring, eliminated overtime, suspended capital spending and scheduled periodic cuts in production.
The company, which prides itself on avoiding layoffs, is in the process of eliminating 5,300 contract jobs in Japan. Contract workers lack most of the benefits given to regular salaried workers, as well as the tacit guarantee of lifetime employment.

The Detroit automakers, meanwhile, have laid off thousands of salaried and hourly workers as they struggle to survive a massive auto sales slowdown.

Other Japanese automakers are also slashing payrolls. On Monday, Nissan Motor Co., said it would cut 20,000 jobs worldwide, or 8.5 percent of its 235,000-strong global work force, by March 2010. Toyota is grappling with plunging demand worldwide, especially in the U.S., and a strong yen, which cuts overseas profits of Japanese exporters like Toyota.

Associated Press Writer Shino Yuasa in Tokyo contributed to this report.


You know, if you didn't love your job, this would be pretty tempting wouldn't it? The buyout offer consists of 10 weeks of pay, plus two weeks of pay for every year of service, plus $20,000.

Red_Chili
02-13-2009, 09:53 AM
Only if you thought you could get another like it in that timeframe. :(

Maddmatt
02-13-2009, 10:20 AM
Only if you thought you could get another like it in that timeframe. :(

Tempting no matter what - say you had worked there 5 years, that's 20 weeks of pay, plus $20k? I can tell you from experience that you could stretch that to much more than 20 weeks if you had to, and try to save that $20k for your "new job" present to yourself. My severance package last summer consisted of 7 HOURS of health insurance, so anything looks good to me :)

All together it sounds like a responsible/pro-active plan - I hope it works for them.
-Matt

Convert
02-13-2009, 10:20 AM
Or near retirement

Hulk
02-13-2009, 10:38 AM
Or if you'd been planning to quit to start your own business anyway.

MDH33
02-13-2009, 10:42 AM
Sounds a lot better than unemployment.

treerootCO
02-13-2009, 12:53 PM
Most employers offer the five and one plan. Push you out the door with one hand and flip you off with the other.

subzali
02-13-2009, 05:22 PM
Those who don't take the buyout are probably going to lost their jobs period, with no pay, so that's a lot better deal IMO than to stay on.

Maddmatt
02-14-2009, 09:51 AM
Those who don't take the buyout are probably going to lost their jobs period, with no pay, so that's a lot better deal IMO than to stay on.

Good point - when a company offers you a buyout, its a lot like a girl friend saying its OK if "you" want to see other people - that decision has been made and it's not like there's another option.

nakman
02-25-2009, 11:03 AM
So here's the deal that people at Ford can get today:

Retirement-eligible skilled trade workers will get up to $40,000 to leave the company, while retirement-eligible production workers would get $20,000. The company will offer $50,000 in buyouts for those not eligible to retire with at least one year of seniority, the officials said. There also is an option to leave the company and get benefits and payments for education.

full story here: http://www.manufacturing.net/article.aspx?id=187368