Less cars in front

Posted on 11 Mar 2009 by The Manufacturer

Toyota has announced that its plants in Derbyshire and Deeside, Wales, are to sustain a ten per cent cut in production which will last for one year.

No further job cuts are to be inflicted upon the plants’ combined staff of 4,500, though a pro-rata pay cut will be implemented.

The changes will be made from April 1.

“The measures we have announced give us a greater opportunity to maintain employment through this difficult period,” said Toyota in a statement.

Peter Tsouvallaris, representative of the union Unite at the plant responded by saying the proposal offers a “real opportunity to restore some measure of stability”.

“Unite’s priority is to secure jobs and give our members a fighting chance of coming through this economic turmoil with their jobs and livelihoods intact. Any decision to cut wages and working time is never taken lightly but 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,” he said.

“Once again, workers in the car industry are demonstrating that they will sacrifice in the short-term to ensure that they, their friends and colleagues can have a future in the years to come.”

Toyota is expected to post a loss of £3bn globally when it announces its year-end results. It will be the first loss in its 70 year history.