Sales of Toyota and Lexus vehicles are on the rise in the U.S. this year, with both companies being on the rebound after a catastrophic 2011. Yet the Japanese carmaker is offering retirement incentives to around 2,000 of its workers in the U.S.
This measure, which involves 10 percent of its employees in the States and is aimed at those who have worked 22 years or more for the company, is Toyota’s attempt to manage the aging of its workforce.
“We’re trying to spread out the impact of attrition over some time as opposed to the risk of them all walking away at the same time”, company spokesman Mike Goss told Reuters.
About 1,600 of them work at the Georgetown, Kentucky plant, which builds the Camry, Venza and Avalon, with the rest of the employees located in other plants and offices around the country.
Goss said that he expects around 20 to 25 percent of those eligible for early retirement to take the offer. Employees who have worked for Toyota for 25 years can retire with full medical benefits, pension and 401k pay.
Under Toyota’s early retirement plan, each worker will get a lump-sum payment equal to two weeks’ pay for every year of service, up to 25 years, plus eight additional weeks of pay. In return, the workers would agree to leave on a schedule set by the company.
Goss said that those who choose to retire early can purchase the years needed to qualify for full retirement, though he declined to disclose at what cost.
Apart from minimizing the risk of a large part of its workforce retiring at the same time, Toyota will also reduce its running costs: a veteran worker typically earns about US$26 per hour, whereas a newly-employed worker’s pay is significantly lower, at around US$16 an hour.
By Andrew Tsaousis
Story References: Reuters
PHOTO GALLERY
