Toyota Motor could soon give senior skilled white collar employees more control over work schedules and guarantee 45 hours of overtime pay each month, hoping flexible conditions will stoke creativity and technological innovation.
The Nikkei Asian Review said workers opting into the system would automatically receive JPY170,000 (US$1,541) on top of normal pay, equivalent to compensation for 45 hours of overtime work, and roughly 50% more than what eligible workers receive under the company's current discretionary work policy, which pays a set allowance each month for theoretically unlimited overtime.
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Under the proposed programme, staff working more than 45 hours overtime would receive additional pay. If workers adhere to standard hours, they need only appear in the office two hours per week and can complete the rest of their time at home or elsewhere.
Some 7,800 senior technical and administrative workers, mainly those in their 30s, working in such fields as research and development would be eligible to participate, compared to around 1,700 under the current discretionary work arrangement, the report said. Around half of all non management staff at the automaker would be covered – a group that excludes recent hires and other younger employees.
By letting specialists arrange their work hours more flexibly and autonomously, Toyota hopes to make those workers more productive and creative. Skilled workers have spoken out about the drawbacks of a blanket time management policy.
Toyota has presented the plan to its labour union, and hopes to implement it in December, becoming the first of Japan's major automakers to do so, the Nikkei Asian Review said. Funds currently allotted to other forms of compensation are expected to pay for the programme though costs could be higher if enrolment is larger than anticipated.
