AUSTRALIA: Toyota workers' majority vote for redundancy package
Toyota Australia's 2,500 'blue collar' workers, who face redundancy when the automaker ends local manufacturing in 2017, have voted to accept payoff packages which the automaker has now started to calculate, a media report said.
According to GoAutoNews, the move also will allow the carmaker to prepare its full year financial report, due in July, which will give the first indicatrion of how much the decision to quit Australian manufacturing will cost Toyota.
A record-making loss "in the hundreds of millions of dollars" is anticipated, the report said.
Toyota Australia media and external affairs manager Beck Angel told GoAuto the worker vote on the redundancy measures was approved "as expected", marking the end of the company’s negotiations over the final payouts and 88% of the carmaker’s 1,900 union rate earners had voted in favour of the redundancy measures.
"At least now at the end of the year we will be able to give our employees an estimate of what the package will be so then they can start planning for beyond 2017 – now they’ve got ample time to do that," she said.
GoAuto said that, under the deal negotiated with the automaker, Toyota workers will get four weeks of pay for each year of service, capped at 90 weeks, as well as a on eweek loyalty bonus for each year of service that is uncapped.
Other entitlements include a 75% payout of accumulated sick leave, and all holiday and long-service leave entitlements, with Toyota agreeing to start recognising long service entitlements after just three years of employment.
The redundancy measures will also be offered to workers not on the union award system.
Angel also said the cost of the redundancy package – and the write down of plant and equipment that was upgraded as part of a multimilliondollar modernisation of the company – would be accounted for in Toyota Australia’s annual report due in July.