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Did Toyota Fall Victim To The Lure Of Money With The Tundra?
Until about three weeks ago, workers built pickups by the thousands here at the sprawling Toyota truck factory south of town. No longer.

Now, about 2,000 permanent employees draw a paycheck from a plant that doesn't produce anything. They perform maintenance, talk about ways to improve quality, and relearn tasks as basic as the best way to drive a bolt.

They're luckier than the plant's 200 temporary workers who work as needed and an army of employees at its parts suppliers, who have been furloughed.

 

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Did Toyota Fall Victim To The Lure Of Money With The Tundra?



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bigmotovbigmotov - 8/29/2008 9:15:17 AM
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The lure is always money/profit. It's that way for Toyota and it is that way for everyone else. It was a good idea and the product is great. It's just bad timing. Kudos to Toyota for keeping so many of the workers on the payroll.

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91z4me91z4me - 8/29/2008 9:20:08 AM
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I agree w/ most except Toyota isn't choosing to keep the workers on payroll. They have a contract and Toyota must fulfill their end of that contract.

Its very similar to the Big 3s contracts w/ the UAW. The workers get paid because the contract says so, not because you are generous or benevolent.



bigmotovbigmotov - 8/29/2008 9:32:14 AM
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I get what you're saying, but I don't see where it says anything about a contract. I see it more as avoiding bad PR than anything else. Getting rid of people might save them some money, but it may hurt their rep and hurt them in the long run. From the comments in the article, it looks like they can lay off the people if they wanted to.

"Mostly non-union Toyota is continuing the Japanese tradition of lifetime employment policies for permanent hires. Breaking with that practice could lead to consequences at other global Toyota facilities."

"If they laid off San Antonio workers for three months, that would be the shot heard 'round the world," says Jeffrey Liker, a University of Michigan professor whose The Toyota Way and other books on Toyota's production system have become business best sellers."

"If the training program for the San Antonio plant stoppage works, the result could be workers with higher skills and more loyalty, lowering the plant's costs in the future."

"It also is building a reservoir of local good will."

"If I were in Texas, I think any sane person would say, 'The market is awful, and this crazy company is actually keeping people employed,' " Liker says.




Agent009Agent009 - 8/29/2008 9:58:47 AMView My AgentSpace
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Actually I think Toyota, is of the opinion that there will be a need for the Tundra in the future (I do too).

So as a matter of doing the "right" thing they have held on to the work force during this tough time.

Now think of the effect this has when some talk of going union. There will be a lot of loyalty in the workforce due to what I consider a "brave" and honorable thing to do. Too many company are just concerned with the bottom line. Toyota is seems is also concerned with the rank and file.



crackityjonescrackityjones - 9/1/2008 2:58:22 AM
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"Kudos to Toyota for keeping so many of the workers on the payroll."

I hate to break it to you, but companies don't do things for the good of anyone but shareholders. Whatever reason they're still on the payroll, it's a business reason. Not to be nice.



steve27tsteve27t - 8/29/2008 12:35:33 PM
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"$133 million in public subsidies and donation of 2,500 acres of land"

You think they could lay off these people after reading the statement above? This is towards the end of the article.

Its the same old story, big corporations are in bed with the politicians. Give a small business a break? NEVER.. but Toyota, sure.





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g2okg2ok - 8/29/2008 2:52:04 PM
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Toyota had bad timing on the Tundra, but if they can develop a hybrid-truck then it may work out in the end. Some very hard financial and technical lessons learned here, but it will make all Toyota cars better in the end. Their sales were flying high for years and now they have a sanity check.

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truthpursuittruthpursuit - 8/29/2008 3:58:03 PM
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Ask one of those workers,who's not getting laid off how they feel about toyota.Great job toyota.

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kornholiokornholio - 8/29/2008 9:23:22 PM
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The only reason Toyota kept those people on with them is so they wouldn't have to train new people when production resumes. But of course they spin it like they are helping out their workers.

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huu76huu76 - 8/30/2008 1:01:32 AM
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steve27,
Yes, and I'm sure VW, BMW and MB all refused free land and turned away tax incentives for locating their plants where they are.

Difference is Japanese companies know the auto industry is cyclical and holding onto employees during downturns lets them react quicker when the market heats up again. Contractors and construction companies will need to replace their trucks in a year or two, and Toyota is positioning itself to ramp up production when needed.

GM used to layoff people for a few months at a time and told them to collect EI. Everyone likes to feel productive, even if they're not doing their primary job, helps build employee loyalty, win-win situation.


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tkindredtkindred - 8/30/2008 9:48:46 AM
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http://www.edmunds.com/insideline/do/News/articleId=127529

"The National Labor Committee on Wednesday issued a 65-page report, "The Toyota You Don't Know," which accuses the Japanese automaker of using "low-wage temps" to build the popular Toyota Prius. The report also alleged that Toyota has "ties to Burmese dictators" through the Toyota Tsusho Corporation. "Toyota's much admired 'Just in Time' auto parts supply chain is riddled with sweatshop abuse, including the trafficking of foreign guest workers, mostly from China and Vietnam to Japan, who are stripped of their passports and often forced to work — including at subcontract plants supplying Toyota — 16 hours a day, seven days a week, while being paid less than half the legal minimum wage," the group said in a statement."


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tkindredtkindred - 8/30/2008 9:50:57 AM
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I posted this because I think with even Toyota, it comes down to money. You can include PR in this category too.


tkindredtkindred - 8/30/2008 5:01:54 PM
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Oh, I have owned Toyotas. But if this it true I will never buy another one.


LexSucksLexSucks - 8/31/2008 7:35:58 PM
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How dare you post such filth about the greatest car company in the world?


rawbuxrawbux - 9/1/2008 2:22:26 AM
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The Tundra has multiple recalls on all kinds of issues. All you peeps that think Toyota can do no wrong. All the recalls on this truck are discusting!

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huu76huu76 - 9/1/2008 11:36:40 AM
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damicko,
That's why they're called 'temps' and contract workers. I'm talking about how they're doing what they can to keep permanent employees rather than cutting them loose like GM and even BMW.

Honda in Alliston Ont hires on contract for 2 years before they'll consider keeping you permanently (6mo,6mo, 12mo). Everyone who goes in knows you don't breath easy until after 2yrs.


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huu76huu76 - 9/1/2008 11:42:17 AM
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OMG, and BMW doesn't use Chinese slave labour for their parts? GM doesn't use Chinese slave labour for their engines? Hell, the Germans use E.European sweatshops because W.European workers cost too much.

I posted numerous links a while ago about how many BMW and Audi parts are supplied by Chinese OEMs.

Name me one company that doesn't exploit workers where their govts allow it. Welcome to globalization, anything can be outsourced, including pinapples (Delmonte nolonger grows in Hawaii because its cheaper to have some kids grow them somewhere else where they don't have frivolous things like env't laws).


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