Toyota is considering halving the working hours of production workers who are re-employed after reaching their retirement age of 60.
Kyodo News reported the carmaker aims to create a better working environment for its older workers to maintain domestic employment and to reduce labour costs at a time the company has been hit by reduced profits mainly because of the strong yen.
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Sources said the scheme could be introduced in April next year and may lead to other companies taking similar measures following the enactment of domestic legislation that requires firms to secure employment for all those who still want to work until age 65.
Toyota currently pays rehired employees who are working full time half of what they received before retirement. Working shorter hours will likely reduce their pay even more.
By rehiring the retirees at salaries lower than the currently employed staff, Toyota can reduce costs. It also aims to use such workers to help train younger staff.
The company has about 1,300 re-employed production personnel, and the tally is likely to rise to about 3,100 by 2030.
