Toyota lifted companywide restrictions on overtime

Article by Christian A., on September 28, 2010

The latest indicator that Toyota Motor Corp. is indeed recovering is the lifting of companywide restrictions on overtime that were imposed during the global financial crisis.

It was in December 2008 that Toyota established the guidelines to minimize overtime. This was around the time that Toyota was preparing to post its first operating loss in seven decades.

Initially, Toyota cut down overtime to 10 hours each month for every worker but in June 2009, it ended all overtime. However, Toyota was lenient with this policy and after-hours work was permitted in certain periods such as in coping with the orders for the Prius hybrid.

Aside from Toyota, other Japanese companies have also started to bring back longer hours. Toyota estimates that its operating profit will more than double to $3.72 billion in the current fiscal year, which ends March 31, 2010. Increasing overtime is expected to bring back mentoring for workers with less experience.

Toyota spokesman Paul Nolasco said that when overtime hours were limited, experienced workers tended to focus only on their tasks and did not spend any time to teach new workers. About 60,000 office and factory workers in Japan were affected by the overtime restrictions.

Toyota declined to reveal its savings as a result of the decision to restrict and eventually end all overtime. [via autonews - sub. requried]

Topics: toyota

If you liked the article, share on:

Comments

Recommended

Aside from fronting Honda’s annual summer tour, pop rock band OneRepublic was also given an opportunity to customize a 2017 Honda Civic Type R. The car is a one-off and...
by - July 26, 2017
Everyone seems to know that the Alfa Romeo Giulia has been recently experiencing problems. Turns out, the blame goes to Giulia’s software. Reid Bigland, big time executive from Alfa Romeo...
by - July 26, 2017
Romanian automotive media publication cars.ro earlier said that the new Ford Fiesta will no longer be offered in the United States. Robert Stiller, Ford’s vehicle program manager for the B-segment,...
by - July 26, 2017
The Nurburgring is the one track that many automakers want to hold a record of, because only the best of the best do. This time, a group of extraordinary passionate...
by - July 25, 2017
Would you like your convertible to be inspired by a yacht? Well, you do not have to imagine it anymore - thanks to the Bentley Continental GT Convertible and Mulliner...
by - July 25, 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