Toyota offering early retirement packages for 2,000 US workers

Article by Anita Panait, on December 4, 2012

Toyota Motor Corp. is offering retirement incentives to around 2,000 workers in the U.S. as part of its efforts to manage the wear-and-tear of its aging workforce. According to Toyota spokesman Mike Goss, around 1,600 workers at Toyota’s plant in Georgetown, Kentucky – representing a quarter of the workforce in the site -- are eligible for the retirement incentives.

The remaining eligible workers are situated at plants and offices across the country, Goss revealed. The carmaker’s spokesman said that they are trying to spread out the impact of the attrition over some time, instead of having the affected employees walk away at the same time.

Toyota started hiring employees for the plant 25 years ago, with the factory opening in 1988. The Kentucky plant builds the Camry sedan, Venza crossover vehicle and Avalon large sedan.

Toyota currently employs around 20,000 workers in the US, including 6,600 employees in the concerned plant. Toyota has an annual production capacity of 500,000 vehicles.

According to Goss, Toyota expects around 20% to 25% of eligible employees to accept the retirement offer. Goss said that workers who have been with Toyota for at least 25 years qualify for retirement with full medical benefits, pension and a $401,000 pay.

Toyota is also making the offer to employees who have been with the carmaker for 22 years or more. This offer includes giving employees the chance to purchase the years needed to qualify for full retirement.

Goss, however, did not say how much a qualified employee has to shell out to purchase those years. Under the offer, each employee will receive a lump-sum payment equal to two weeks pay for every year of service, up to 25 years, plus eight additional weeks of pay. In exchange, the employees would leave on a schedule set by Toyota.

Topics: toyota

If you liked the article, share on:

Comments

Recommended

We first heard of the fifth generation SEAT Ibiza earlier this year, and last week, the company finally revealed the all-new Ibiza at the international launch in Barcelona. The new...
by - May 22, 2017
The aftermath of the Takata airbag recall still largely resounds in the automotive industry, as big automotive companies like BMW, Mazda, Subaru and Toyota were extensively hit with what is...
by - May 22, 2017
Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Honda recently whips out a new feature for the S660 Bruno Leather Edition. Any guesses? Well, it’s going to be an iPhone app that goes by the name Rev Beat....
by - May 22, 2017
And so it goes, Ford is not at all closing its doors to an all-electric F-150 pickup. The American manufacturer initially laid out its plans for an F-150 hybrid earlier...
by - May 22, 2017
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