Toyota Australia Workers Could Face Pay Cuts As It Kicks Off Union Negotiations

Toyota plant in Altona / Getty

Toyota Australia has asked the union and employees to accept contractual changes that will help it lower labour costs and keep its Altona manufacturing plant on shore.

The company today said it was seeking to remove “outdated and uncompetitive practices and allowances” in its Workplace Agreement terms and conditions. According to News Ltd’s CarsGuide, shift bonuses are under review.

Toyota president and CEO Max Yasuda said the discussions were part of an effort to “modernise work practices” and “move towards being globally competitive”.

Employees will vote on the new terms by 5 December, and an outcome will be announced on 6 December.

Today’s announcement comes just two weeks after Toyota revealed plans to cut up to 100 jobs from Altona in Victoria by the end of November. The plant employs about 2,500 people and targets a production rate of 431 vehicles a day.

Toyota is seeking to cut the cost of Australian-built vehicles by $3,800 by 2018.

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