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Toyota Offering Buyouts to 18,000 U.S. Workers, Cutting Exec Pay

02/13/2009
Toyota Motor Corporation will offer buyouts to approximately 18,000 of its employees in the United States and will cut executive compensation by up to 30 percent. It is the first time the company has offered buyouts to North American workers. The Associated Press reports that the company will also cut production days at some U.S. factories in April, between two and eight days, depending on the amount of inventory at each plant. Non-union auto assembly plants in Indiana, Kentucky, and Texas will be affected, as well as auto parts factories in Alabama, Missouri, and West Virginia. "We've taken responsible, step-by-step actions to address this issue in recent months, and we hope the new measures will help us adjust while protecting jobs," says Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America. The buyout will consist of 10 weeks pay, plus two weeks pay for every year of service, plus $20,000, and will not be offered to unionized workers in the U.S. or Mexico, nor to workers at a Canadian plant.

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