Toyota supplier Toyoda Gosei asks employees to take leave as lockdown bites (updated)
08/06/2022 13:03
(Adds details and context)
By Maki Shiraki
TOKYO, June 8 (Reuters) - A major Toyota Motor Corp 7203.T
supplier has asked employees to take a day off with reduced pay
this month, a spokesperson for the supplier, Toyoda Gosei Co
7282.T , said on Wednesday, reflecting the impact of the chip
shortage and China lockdowns.
Toyoda Gosei, which makes air bags, brake hoses and radiator
grilles, has asked domestic employees to take a day of leave in
June following production suspensions by Toyota and other
automakers, the spokesperson confirmed to Reuters, declining to
name the automakers.
Toyoda Gosei and its union are together considering whether
similar measures will be needed in July or beyond, according to
a person familiar with the matter, who declined to be identified
because the information hasn't been made public.
Toyoda Gosei is a major supplier to top shareholder Toyota
and also supplies other automakers. It employs some 6,500 people
in Japan, not including contract and dispatch workers, according
to the spokesperson.
A Toyota spokesperson declined to comment.
Toyoda Gosei's request applies to its entire domestic
workforce, including temporary and dispatch workers, according
to the person and two others. It made a similar request last
month, but that was limited to workers on its factory lines, two
of those people said.
SUPPLY CHAIN RIPPLE
The move is one of the clearest signs yet that recent
factory suspensions and output reductions by Toyota and other
automakers are starting to ripple across the supply chain.
It also comes as sources told Reuters on Wednesday the Bank
of Japan will consider downgrading its assessment on factory
output at this month's policy meeting due to the supply
disruptions from China's strict COVID-19 lockdowns.
According to terms agreed with the union, workers will get
80% of their daily pay, the spokesperson said.
Managers will take a pay cut of 2.5-5% for the month,
depending on rank and regardless of whether they take a day off,
one of the people said.
Japan's factories posted a sharp fall in output in April,
according to the latest data, highlighting the fragile nature of
the recovery in the world's no.3 economy.
Toyota recently cut its global production plan for June
twice in the same week and has signalled that its full-year
output estimate could be lowered.
The automaker previously announced production suspensions at
some domestic plants this week and for several days in May.
Last month Subaru Corp 7270.T warned that its U.S. dealers
had a record low stockpile of around 5,000 vehicles left, while
Honda Motor Corp 7267.T has said it would slash production by
20% at two domestic factories.
(Reporting by Maki Shiraki; Editing by David Dolan and
Bernadette Baum)
((david.dolan@tr.com; +81 3 6441 1526; Reuters Messaging:
david.dolan.thomsonreuters.com@reuters.net))