Toyota laid off 8% of the workforce in Australia, destroys lifetime employment myth

Article by Christian Andrei, on January 31, 2012

Toyota has laid off 8% of the workforce of its only assembly plant in Australia, comprising 350 of the 4,600 employees at the Altona, Melbourne plant. Toyota has always prided itself in the principle of lifetime employment, a central aspect of how it does business. But apparently, it’s difficult to apply overseas.

Toyota said that the layoffs were due to declining demand, prompting a 36% production drop at the plant over the last four years.

In a statement, Toyota Australia CEO Max Yasuda said that the truth is that its volumes have decreased, something that they mistakenly believed to be temporary but has later turned out to be permanent.

Toyota’s plant in Australia produces the Camry, Camry Hybrid and Aurion sedans for both the market in Australia and for exports. Output peaked in 2007 with 149,000 units, says Autonews.

Toyota expects to achieve 95,000 in 2012. Toyota has had more success in keeping its employees for a lifetime than other automakers but the sad reality is that it’s not a guaranteed proposition whether in Japan or other countries.

After the worldwide economic crisis wreaked havoc in 2008, Toyota temporarily shut down plants or reduced output in the U.S. and Japan. In a few cases, Toyota was able to keep its employees such as what happened in the idled Tundra pickup plant in Texas.

Instead of cutting jobs, Toyota made sure that payrolls would be intact by retraining workers and conducting maintenance during the down time.

In Japan, Toyota’s full-time payroll was kept but the contract workers were dropped. The automakers in Japan have been more flexible by not renewing contracts or hiring for short stints as needed.

Topics: toyota, australia

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries