Toyota staff to return to full week to cope with demand

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Monday, June 29, 2009
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This is Staffordshire

STAFF at Toyota's Burnaston factory are returning to full working hours for two months following a surge in demand created by car scrappage schemes.

The Japanese car giant introduced a 12-month, 10 per cent cut in hours and basic pay on April 1 in a bid to cut labour costs and maximise efforts to save jobs over the long term.

But management at the plant told its 3,900 workers – 400 of which live in the Uttoxeter area – they are to revert to a five-day week throughout August and September.

The factory, which makes the Auris and Avensis models, made the announcement on Thursday last week after seeing orders increase across the UK and mainland Europe.

Production was initially ramped up earlier this month to meet increased demand after scrappage schemes were introduced in Germany, France, Italy and Spain. And now the shop-floor is gearing up for more work after the initiative – whereby customers with a car more than 10 years old can get £2,000 knocked of the price of a new one – was rolled out across the UK.

Toyota has declined to reveal how many extra vehicles it will be manufacturing as a result of the production increase.

And it has been quick to warn workers the return to a full time working will only be temporary.

A spokesman for the Burnaston factory said: "The car market continues to be in a volatile condition.

"We need to make production plan changes to meet customer requirements.

"While this additional volume is positive news, it is viewed as short term. Our overall plan for the year remains significantly less than our capacity."

The company has also said the Auris production line will remain on one shift, instead of two, and a pay freeze for all staff will remain in place.

But former Thomas Alleyne's pupil Paul Keeling, who works as a sprayer, welcomed the return to full time work.

The 26-year-old, formerly of Leigh, said: "It may only be for two months but these are all positive signs that a recovery is just around the corner."

When Chancellor Alistair Darling confirmed in the Budget in April that the car scrappage scheme would be introduced in the UK, Toyota welcomed the move.

It said that it would focus its sales push on models such as the Auris.

On Monday last week, the Government released figures which showed more than 60,000 cars had been ordered since the scrappage scheme came into effect in mid-May. The offer will run until March 2010.

To benefit, a buyer must show they have been the registered keeper of the car due to be scrapped for at least 12 months. Half the cash will be paid for by the Government, with manufacturers contributing the rest.

The Government has set aside £300 million to pay for the programme, which could be taken up by 300,000 customers.

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