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Toyota GB slows plants and cuts wages

Go slow: Toyota's Burnaston factory is one of two Toyota factories in the UK to suffer the economic pain.

UK union backs plan to reduce production and pay at two Toyota plants

16 Mar 2009

TOYOTA has announced plans to cut production and workers’ pay at its two UK plants in the wake of the sales slump that has engulfed the industry around the world.

The union involved, Unite, has backed the “work share” plan, which will start on April 1 and last for 12 months.

The two plants involved are the Burnaston assembly plant, which employs 3900 workers, and the Deeside engine plant, which employs 570 people.

The cuts were agreed after Toyota consulted the workforce.

“It has been agreed that the best way to secure long-term employment is to temporarily reduce working hours and base pay by 10 per cent,” the company said in a statement.

The two plants have already had two weeks of down time in a bid to bring inventory into line with demand, while 200 temporary workers have been laid off.

The cuts continue the contraction that has gripped the UK industry. Nissan recently cut 1200 jobs at its Sunderland plant. Honda shut its Swindon plant for four months late last year.

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