The British arm of Toyota is to cut UK staff pay and working hours by 10 per cent to save money in the face of a sharp downturn in global demand, the Japanese auto maker said today.
Toyota Manufacturing UK and trade unions had agreed that the "work share" arrangement at the firm's two plants, near Derby and at Deeside in north Wales, would begin on April 1st and last for a year, it said in a statement.
"During this time we will continue to monitor the market and company situation closely," Toyota said. "We believe the measures we have announced give us a greater opportunity to maintain employment through this difficult period."
The news came as a report said Toyota Manufacturing UK's parent, Toyota Motor, was likely to agree to pay staff in Japan an average 1.78 million yen (£12,611) in annual bonuses per worker, equal to five months of wages, in 2009.
The company was also set to pay an average basic monthly wage increase of 7,100 yen following talks with unions, Japan's Kyodo news agency cited sources close to the talks as saying.
A spokesman for Toyota Manufacturing UK said the plants would move to a four-and-a-half day week, with staff not being paid for the time off.
A spokesman for trade union Unite said it was recommending the cuts to its members.
"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.
Reuters