Toyoda Gosei Japan employees furloughed due to production cuts

Time：2022-06-10 10:29:45Source：

According to foreign media reports, a spokesman for Toyoda Gosei, a major auto parts supplier to Toyota Motor, said on June 8 that the company has asked employees this month due to chip shortages and the epidemic blockade. Take a day off with a pay cut.

The spokesman noted that under terms agreed with the union, workers would receive 80 percent of their daily wages while on leave.Managers will take a pay cut of 2.5% to 5% per month, depending on the rank, regardless of whether they are on leave or not.

Image credit: Toyoda Gosei

Toyoda Gosei produces car airbags, brake hoses and radiator grilles.A company spokesman confirmed that the company had asked its domestic employees in June to take a day off after Toyota and other automakers stopped production.Toyoda Gosei and its union are considering whether similar measures need to be taken in July or beyond, according to a person familiar with the matter.

Toyoda Gosei is a major supplier to its largest shareholder, Toyota Motor, and also supplies other automakers.The company employs about 6,500 people in Japan, excluding contract and dispatch workers.Toyoda Gosei’s request applies to all its domestic employees, including temporary and dispatch workers, the people said and two others said.

The company made a similar request last month, but only for workers on the production line, two of the people said.The move by Toyoda Gosei shows that recent plant shutdowns and production cuts by Toyota and other automakers are starting to ripple across the supply chain.

Japan's factory output fell sharply in April, latest data showed, underscoring the fragile nature of the recovery in the world's third-largest economy.Toyota recently cut its June global production plan twice in the same week and said it may cut its full-yearproductionforecast.Last month, Subaru warned that inventories at its U.S. dealerships were at an all-time low of about 5,000 vehicles, while Honda said it would cut production at two domestic plants by 20 percent.