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Toyota Keeps Employees at Idled Plants at Considerable Cost
03:24 p.m. EDT, August 18, 2008

Although some 4,500 Toyota, employees now work at idled facilities, they will not lose their jobs, an action the company describes as putting into action the ethics it has long espoused.

Latondra Newton, the general manager of Toyota's Team Member Development Center in Erlanger, Ky., told Automotive News, "This was the first chance we've really had to live out our values. We're not just keeping people on the payroll because we're nice. At the end of this, our hope is that we'll end up with a more skilled North American work force."

Toyota halted production of Tundra pickups and Sequoia SUVs on August 8 at facilities in San Antonio, TX and Princeton, Ind. The plan is to use the three months to train employees on safety practices, workplace diversity, ethics, and corporate history.

They'll even learn how to pick up screws, clean up after urban vandals, and maybe plant some flowers. While the decision to keep the workers isn't inexpensive, Toyota is garnering considerable good will since all workers will retain full pay and benefits.

At a conservative estimate of $20 an hour to Toyota, the company is spending at least $50 million. The shutdown will cut production of the pickups and SUVs by 30,000 to 40,000 units. At an average price of $25,000, that translates to lost revenue of $1 billion.


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