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Latest NewsEconomics, government & businessLabour marketRecruitment & retentionRetention of staff

Toyota considers line cut but pledges to retain staff

by Personnel Today 27 Aug 2009
by Personnel Today 27 Aug 2009

Toyota reassured staff yesterday that there would be no redundancies as it conceded that it could close one of the two production lines at its Burnaston plant in Derbyshire.

The world’s biggest carmaker argued that it is cheaper to have one production line working close to full capacity, rather than two working at a fraction of their potential, The Times reported.

Under the plans, Toyota could keep the No 1 production line – which works two shifts and makes the Auris and the Avensis – open. No 2, which in September scaled down from two shifts to one and which makes only the Auris, would be closed.

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Toyota said that there would be no redundancies as part of any restructuring of its Burnaston plant, which employs almost 3,600 staff. Most of the staff would be moved to the other production line. Those that could not be accommodated would be deployed elsewhere until conditions improved, a Toyota spokesman said.

Staff at the Burnaston car factory returned to working full time last week, having been on a 4.5-day week since April. However, the move is only temporary and they will resume a 4.5-day week, the equivalent of 10% pay cut, in October.

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Personnel Today
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