Although it may seem oxymoronic, Toyota Motor Engineering & Manufacturing North America (TEMA) is further reducing its production in an effort to preserve jobs. According to Jim Wiseman, vice president of TEMA, "This philosophy of shared sacrifice is the best approach for us, and hopefully will make us a stronger company in the long term."
Obviously these aren't the first cutbacks. The company has already planned occasional non-production days where employees participate in training and plant improvement activities. It has also established a hiring freeze, eliminated overtime, and suspended capital spending.
This new round of reduction measures takes the cutbacks even further. There will be additional non-production days in April. TEMA will also implement "work sharing" where production team members at affected plants would work and be paid 72 hours instead of 80 during the two-week pay period. Additionally, executive and salaried bonuses will be eliminated, executives will take pay cuts, production team member bonuses will be reduced, a voluntary exit program will be offered for team members who wish to pursue other opportunities, and there will be no wage increases for the foreseeable future.
Despite the company's large size, it has carried out the least amount of job cuts of the major automakers since the economic downturn. Wiseman said "We've taken responsible, step-by-step actions to address this issue in recent months, and we hope the new measures will help us adjust while protecting jobs,"