Carmaker Toyota is expected to announce cuts in production at its UK factories.
Carmaker Toyota is expected to announce cuts in production at its UK factories.
Nearly 4,500 staff at its plants in Burnaston, near Derby, and Deeside, Flintshire, are expected to accept a 10% pay cut as the working week is cut.
Nearly 4,500 staff at its plants in Burnaston, near Derby, and Deeside, Flintshire, are expected to accept a 10% pay cut as the working week is cut.
The half-day reduction comes just after the factories reopened following a two-week shutdown, with further non-production weeks planned for April.
The half-day reduction comes just after the factories reopened following a two-week shutdown, with further non-production weeks planned for April.
Motor industry representatives are due in London later for talks over the government's £2.3m support package.
Motor industry representatives are due in London later for talks over the government's £2.3m support package.
Carmakers and suppliers have yet to receive any funds from the Automotive Assistance Programme, which was announced in January.
Carmakers and suppliers have yet to receive any funds from the Automotive Assistance Programme, which was announced in January.
The scheme has now been approved by the European Commission and industry figures are due to find out how to apply for loans or guarantees, which are linked to helping firms become greener, more innovative and productive.
The scheme has now been approved by the European Commission and industry figures are due to find out how to apply for loans or guarantees, which are linked to helping firms become greener, more innovative and productive.
A series of carmakers have been forced to announce cost-cutting measures, including reducing production, freezing pay and stockpiling thousands of vehicles, in the face of a sales slump across Europe. CUTTING BACK Aston Martin: Extended Christmas shutdown and 600 redundancies. Temporary three-day week began in JanuaryBentley: Three-day week introduced. Closing Crewe plant for seven weeks from the beginning of March. 220 job cutsGM (Vauxhall): Extended Christmas closure and 40-day shutdownHonda: Four-month shutdown between February and MayJaguar Land Rover: Series of one-day shutdowns and production cuts late 2008, plus 450 redundancies plannedMini: 850 job losses. Five-day week introduced. Two-week shutdown planned for AugustNissan: Two-week shutdown late last year and 1,200 redundancies. Shift stoppagesToyota: Shorter working week. Staff offered voluntary redundancy. One of the night shifts suspended. Further shutdowns Source: SMMT
A series of carmakers have been forced to announce cost-cutting measures, including reducing production, freezing pay and stockpiling thousands of vehicles, in the face of a sales slump across Europe. CUTTING BACK Aston Martin: Extended Christmas shutdown and 600 redundancies. Temporary three-day week began in JanuaryBentley: Three-day week introduced. Closing Crewe plant for seven weeks from the beginning of March. 220 job cutsGM (Vauxhall): Extended Christmas closure and 40-day shutdownHonda: Four-month shutdown between February and MayJaguar Land Rover: Series of one-day shutdowns and production cuts late 2008, plus 450 redundancies plannedMini: 850 job losses. Five-day week introduced. Two-week shutdown planned for AugustNissan: Two-week shutdown late last year and 1,200 redundancies. Shift stoppagesToyota: Shorter working week. Staff offered voluntary redundancy. One of the night shifts suspended. Further shutdowns Source: SMMT
More than 3,000 UK redundancies have been announced in recent months, with parts suppliers also hit hard.
More than 3,000 UK redundancies have been announced in recent months, with parts suppliers also hit hard.
Toyota had been consulting unions on whether to introduce a shorter working week, a pay freeze or a temporary shutdown at Burnaston and Deeside.
Toyota had been consulting unions on whether to introduce a shorter working week, a pay freeze or a temporary shutdown at Burnaston and Deeside.
A company spokesman said: "We have to reduce our costs further. Our employees recognise that and we are seeking agreement with the unions."
A company spokesman said: "We have to reduce our costs further. Our employees recognise that and we are seeking agreement with the unions."
The firm employs 3,900 workers at Burnaston, where the Avensis and Auris are made, and 570 at Deeside.
The firm employs 3,900 workers at Burnaston, where the Avensis and Auris are made, and 570 at Deeside.
It has already cut 200 temporary jobs and opened a voluntary redundancy scheme last week.
It has already cut 200 temporary jobs and opened a voluntary redundancy scheme last week.
Those who are eligible can apply for a quotation to see how much of a pay-off they would receive.
Those who are eligible can apply for a quotation to see how much of a pay-off they would receive.
The company said the scheme, which it calls "voluntary release", was requested by its employee representatives, and it has no target for how many people are expected to leave.
The company said the scheme, which it calls "voluntary release", was requested by its employee representatives, and it has no target for how many people are expected to leave.
Annual pay increases and management bonuses have been scrapped.
Annual pay increases and management bonuses have been scrapped.
Toyota has already said it will post the first group-wide annual operating loss - totalling more than £3bn - in its 70-year history.
Toyota has already said it will post the first group-wide annual operating loss - totalling more than £3bn - in its 70-year history.
Tony Woodley, joint leader of the Unite union, said the London talks between industry leaders and Business Minister Ian Pearson would bring vital stability to the sector.
Tony Woodley, joint leader of the Unite union, said the London talks between industry leaders and Business Minister Ian Pearson would bring vital stability to the sector.
"We know the government have some good ideas about how to support manufacturing and the car industry through this recession," he said.
"We know the government have some good ideas about how to support manufacturing and the car industry through this recession," he said.
"Our concern has been to ensure that we get this support, which is desperately needed right through the supply chain, out as fast as is humanly possible."
"Our concern has been to ensure that we get this support, which is desperately needed right through the supply chain, out as fast as is humanly possible."
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