Toyota cutting production and pay

Carmaker Toyota is expected to announce cuts in production at its UK factories.

Nearly 4,500 staff at its plants in Burnaston, near Derby, and Deeside, Flintshire, are expected to accept a 10% pay cut as the working week is cut.

The half-day reduction comes just after the factories reopened following a two-week shutdown, with further non-production weeks planned for April.

Motor industry representatives are due in London later for talks over the government’s £2.3m support package.

Carmakers and suppliers have yet to receive any funds from the Automotive Assistance Programme, which was announced in January.

The scheme has now been approved by the European Commission and industry figures are due to find out how to apply for loans or guarantees, which are linked to helping firms become greener, more innovative and productive.

A series of carmakers have been forced to announce cost-cutting measures, including reducing production, freezing pay and stockpiling thousands of vehicles, in the face of a sales slump across Europe.

Tony Woodley, joint leader of the Unite union, said the London talks between industry leaders and Business Minister Ian Pearson would bring vital stability to the sector.

“We know the government have some good ideas about how to support manufacturing and the car industry through this recession,” he said.

“Our concern has been to ensure that we get this support, which is desperately needed right through the supply chain, out as fast as is humanly possible.”


Richard Reid is the founder of Pinnacle Proactive, Specialising in the Employee Assistance ProgramStress ManagementStaff Retention & Absenteeism. Take a Proactive Approach to Growing Your Organisation & its People. For more info visit


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