Toyota warns of factory peril

TOYOTA Australia has warned striking workers that their industrial action could jeopardise the company’s Camry export program, which accounts for 70 per cent of production at the Altona plant in Victoria.

The workers are planning to walk out on Thursday and Friday this week and again on the same days next week over a pay claim in an action that will cause a production shortfall of about 580 cars a day at a daily cost of $8 million.

The strike threatens to leave Toyota short of run-out stock of Camry and Aurion ahead of the switchover to the all-new seventh-generation Camry late this year.

About 3300 workers employed at Toyota’s Altona plant in Victoria and parts centres in Melbourne and Sydney have rejected the company’s pay rise offer of 11 per cent over 39 months. The workers want an increase of four per cent a year over three years.

After granting an interim order suspending industrial action last week, workplace relations tribunal Fair Work Australia on Monday dismissed the company’s application to suspend or terminate industrial action planned for this week.

The situation is now in stalemate, with no talks or commission hearings planned.

Left: Toyota Australia president and CEO Max Yasuda. Below: Production line at Altona.

Toyota Australia president and CEO Max Yasuda said the company had to compete with Toyota plants around the world for the right to build cars and to supply export markets.

“We are already under severe competitive disadvantage due to currency, high local costs and reduced volumes,” he said.

“We need to work together to reduce costs and improve our competitiveness. Industrial action at this time can only hurt Toyota Australia’s case to maintain its export program.

“If Australian operations are uncompetitive and perceived as unreliable, these cars can be made in another Toyota plant. It puts a serious dent in Australia’s reputation as a car-maker and reduces job security for our employees.” Mr Yasuda said the dispute would cause short-term pain and have long-term consequences for suppliers, dealers and customers.

“More than 3300 employees and up to 11,000 supplier employees and their families will be impacted,” he said.

As well as striking two days a week, the workers have banned overtime, preventing the company from extending shifts or rostering extra shifts on weekends to make up the shortfall.

Main unions involved in the strike are the Australian Manufacturing Workers Union (AMWU) and Electrical Trades Union (ETU).

An AMWU spokesman told radio station 3AW today that workers were feeling the pressure of rising living costs and that it was time for a meaningful wage rise.

The dispute at the centre of the strike dates back to March when negotiations started on a new workplace agreement to come into force in late July.

After rejecting the company’s offer, workers went on strike for a day in early September and then voted to strike for two days a week for three weeks.

The company headed off last week’s two-day stoppage with its Fair Work Australia interim order, but the two-day strikes this week and next week will now go ahead.

All up, the five days of down time at the plant would cost Toyota about 5600 vehicles.

The strikes come on top of production cuts due to parts shortages in the wake of the Japanese earthquake and tsunami in March – an event that is likely to end up costing Toyota Australia about 25,000 sales of locally made and imported vehicles this year.

At the same time, Toyota is gearing up for the all-new Camry – a project that includes a new $300 million plant to build the latest four-cylinder engine at Altona.

The company is planning a media briefing at the site next Wednesday to talk about the new plant and the engine it will produce from next year.