Toyota pay cuts
Toyota has announced that it will cut base pay and production by 10 per cent at its UK factories in Burnaston and Deeside.
A spokesperson for Toyota said that all 3,800 employees at the sites will be affected by the arrangement, which has been welcomed by trade union Unite as an opportunity to restore stability to the Japanese car maker.
In a statement, Toyota said: ‘This work share arrangement will take effect from 1 April 2009, and will be in place for one year, during this time we will continue to monitor the market and company situation closely.
‘We believe the measures we have announced give us a greater opportunity to maintain employment through this difficult period.’
The announcement comes as car industry leaders meet with business secretary Lord Mandelson to discuss government support for the industry.
A £2.3bn bailout package was announced by the government in January, and approved by the European Investment Bank last month; however, loans have yet to be allocated.