Toyota to retain regular Thai staff
Bangkok Post: 22 Nov 2008
350 subcontractors get early retirement
Toyota Motor Thailand (TMT), the Thai unit of the world's leading automaker, said yesterday that its 8,000 permanent staff would be unaffected by the company's lower production despite poor market conditions next year.
TMT has decided to terminate 350 subcontract workers out of 5,500 using an early retirement programme to cope with falling demand abroad and at home, said vice-chairman Ninnart Chaithirapinyo.
These workers were offered compensation as required by law: three more months of salary on average, he said.
In Tokyo, Toyota announced yesterday that it would cut its domestic temporary workforce by 50% to 3,000 workers by the end of the fiscal year.
Toyota follows Mazda Motor Corp and Isuzu Motors Ltd, which yesterday said they would slash a combined 2,700 temporary jobs in Japan in response to slowing sales.
Earlier this month, Toyota forecast a 68% drop in full-year net income globally, the biggest drop in profit in at least 18 years, as a global recession cripples auto demand.
''It is the philosophy of Toyota in Thailand that we don't cut permanent staff. So these 8,000 permanent workers will not be affected,'' Mr Ninnart said.
Toyota, Japan's top automaker and also the top brand in Thailand, saw a decline in sales in Thailand the past four months. In October, sales dipped by 20.5% to 20,532 units.
Consequently, Mr Ninnart said TMT would produce 40,000 units fewer than normal from December to April. It also cut its production target from 500,000 units to 450,000 on expectation that exports would be wounded badly by the global economic recession.
''The market has been in a global panic, causing demand to collapse quickly. Obviously, the situation will be worse next year,'' he said.
In 2009, overall industry sales are forecast to fall by 20% and exports 30%. ''We have to watch the market every week and adjust our production plan to be in line with demand,'' he said.
Mazda Sales (Thailand), another Japanese carmaker, affirmed yesterday that its strategic direction remained unchanged despite the shareholding restructuring of its Japanese parent, which also decided not to renew 1,300 temporary manufacturing staff contracts that expire at the end of this year.
The move will not result in any change in Mazda's Thailand operations, the local affiliate said in a statement.
''Mazda will continue its business in 2008 and 2009 as planned, with a focus on business expansion strategy in Thailand through the introduction of new products as scheduled, human resource development, sales and after-sales service improvement ... as well as dealership network and service centre expansion,'' said the statement.
Search Option
Recent Posts
Todays Birthdays
