Toyota to cut pay and production by 10% at UK plants to protect jobs

Toyota will cut pay and production by 10% at its UK plants to cut costs and avoid redundancies, it was announced.

Production will decrease for 12 months beginning on 1 April, where working hours and base wages for the car company’s 3,900 employees will be temporarily reduced. The move follows a series of cutbacks in the motoring industry, with high-profile employers including BMW Mini, Nissan and Bentley all reducing staff hours or cutting jobs to deal with a slump in demand.

A Toyota spokesman said the company would monitor the market and company over the period and make adjustments if necessary.

“Following extensive consultation with our employee representatives, and with input from all employees, it has been agreed that the best way to secure long-term employment is to temporarily reduce working hours and base pay by 10%,” he said.

“We believe the measures we have announced give us a greater opportunity to maintain employment through this difficult period.”

Peter Tsouvallaris, a representative for union Unite, said the move showed workers were willing to make short-term sacrifices to secure their future.

“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,” Tsouvallaris said.

Earlier this month, staff at Jaguar Land Rover voted to accept a shorter working week and one-year pay freeze to avoid compulsory job cuts.