Toyota Cuts Pay and Production by 10%

Toyota has announced that its two British factories in Burnaston, Derbyshire and Deeside, Flintshire will attempt to stave off the effects of recession in 2009 by reducing pay and production by 10 per cent. Affecting 4,500 workers across the two sites, the cutbacks will come in to bat on 1 April. The Japanese car giant stated that “the measures we have announced give us a greater opportunity to maintain employment through this difficult period,” while it was revealed in mid-February that managers will not receive any bonuses this year.

Reaction from unions has been noticeably free of ululating dissent, with Unite representative Peter Tsouvallaris telling The Guardian newspaper, “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.” The news comes at a time when car makers are meeting with business minister Ian Pearson to discuss planned bailouts for the struggling industry.