Quality Weenie

Toyota Set To Screw It's Employees

Toyota actually are so in love with themselves that they actually put into a high level memo that they are going to screw their employees for more profit.

Toyota Motor Corp. must hold down growth of its U.S. manufacturing wages and benefits, which are among the highest in the auto industry and are growing faster than the company's profit margin, according to a high-level company report obtained by the Free Press.

The report from Seiichi (Sean) Sudo, president of Toyota Engineering & Manufacturing in North America, said Toyota should strive to align hourly wages more closely with prevailing manufacturing pay in the state where each plant is located, "and not tie ourselves so closely to the U.S. auto industry, or other competitors."

I know everyone thinks that Toyota workers are making a lot less than the American Auto Industry worker but they are dead wrong.

In a memo to workers at the plant after the report was circulated, Toyota noted that workers at Georgetown earned $3 an hour more than the U.S. auto industry standard. The Free Press reported last week the workers averaged $30 an hour, including bonuses.

(emphasis mine)

So Japanese Auto workers at American plants are making $3 more than the American Auto Industry worker.

Guess that blows the theory that the American Auto companies pay it's workers a blotted salary and is the cause of all the American Auto company problems. Because if the Japanese companies pay more than the American companies and the Japanese companies are not having the same problems the American companies are having then it can't be wages and benefits can it. Hmm, maybe my theory that it's the executives fault is correct.

Auto experts and Toyota's workers say it is ingrained in Toyota's culture to sweat over trying to save $300 million five years down the road even as the company rakes in more than $1 billion a month.

So just like the American companies the bottom line is the most important thing to the Japanese.

Toyota's strategy resembles what Hyundai Motor Co. uses at its plant in Montgomery, Ala. Assembly workers there make $14 an hour, about half the wages, bonuses and benefits of Toyota, Honda, Nissan and Detroit's automakers. But Hyundai's wages still are considerably higher than for comparable Alabama jobs, which pay $10.79 an hour.

"Our challenge will be how to educate team members and managers about our condition, so that they can understand and accept change," Sudo said in the report.

So Toyota wants it's employees to start making only $14/hour. So when Toyota lineworkers start complaining that they can not take a 50% cut in wages will all the naysayers say they are being greedy and should just accept that much cut in their wages? As they are doing to the American Auto workers.

I keep saying that with Toyota increasing exponentially every year they are eventually run into the same problems that the American Auto companies are and it looks like it will be sooner than later.

Posted by Quality Weenie at February 14, 2007 09:03 AM | TrackBack