Toyota announced today that it is in talks with its Japanese workers to cut salaries as it halts production to adjust inventories due to a decreasing global demand. Spokeswoman Ririko Takeuchi said that the size of the salary cuts is still undecided but she said talks are under way as Toyota decided to stop production at all of its 12 Japanese plants for 11 days in February and March.
Takeuchi said that the Japanese law requires a company to pay at least 60 percent of the average regular wage during such a stoppage.
In March, Toyota is planning on cutting 3,000 temporary workers in Japan – or about half its domestic temporary work force. Job cuts have not affected the 70,000 full-time domestic staff. The Japanese automaker employs a total of 316,000 people globally.
Toyota recently projected its first yearly operating loss in 70 years for the year ending March 31.
Source: Detroit News