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Toyota UK to cut pay, hours

2009-03-12 06:32

London - The British arm of Toyota Motor Corp is to cut UK staff pay and working hours by 10 percent to save money in the face of a sharp downturn in global demand, the Japanese auto maker said on Wednesday.

Toyota Manufacturing UK and trade unions had agreed that the "work share" arrangement at the firm's two British plants, near Derby in central England and at Deeside in north Wales, would begin on April 1 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."

Last month the group said it would freeze pay and management bonuses and introduce a voluntary severance programme at its two British factories.

Toyota, which makes its Avensis and Auris models at Burnaston near Derby and produces engines at Deeside, saw its production volumes fall by 20% in 2008 due to lower demand.

The company, which employs 3 870 people at Burnaston, previously announced plans to halt UK production for four weeks this year in response to the downturn.


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