Shared Sacrifice: Toyota's Latest Model for Corporate Behavior in a Recession
Posted: Friday, February 13, 2009
by Mogama
http://www.mogama.info
News from the Kentucky News Network just hit my ears, and my ears tingle, like the news became my favorite music or something. Toyota Motor Company's Vice President Jim Wiseman calls it "shared sacrifice", and its far better than lay offs or heartlessly terminating employees who slave themselves to support their families and help their employers stay in business. Toyota is going to implement the "shared sacrifice" plan at Georgetown, Kentucky, which is Toyota's largest manufacturing plant outside of Japan.
Instead of following the now popular employer disloyalty model, Toyota has decided to pursue an approach that we hope will be emulated by other employers: sacrifice some pay; save the jobs.
To do this, the company will cut the salaries of top executives and other salaried workers by up to 30%. Also, to save cost, Toyota will temporarily do away with bonuses, and no one will get a pay raise as long as automobile sales remain in the slum.
For executives and salaried employees who do not want to share in the sacrifice, Toyota offers a buyout a plan for those individuals to seek greener grass across the landscape.
The company's plan shows concern for the little guy. Though production workers will see their bonuses reduced, their pay won't be cut, and they will not be laid off. However, pending the severity and longevity of the slow market, there could be "non-production days" or even "non-production weeks".
Still, one can say, what a relief to see a company showing some appreciation to its location and much loyalty to it's devoted employees at Georgetown, home of the Toyota Camry, the #1-selling car in America.
Perhaps the big guns at Toyota have been thinking, "If we had a choice between taking a lower pay and losing our jobs, which would we choose? Obviously, we would prefer to keep our jobs if it means less pay. We'd be willing to sacrifice some pay in order to save our jobs."
Could this be the model best fitted to an economy in recession? One hopes that other decision makers in the corporate world are listening and taking notes on this latest Toyota model that may not have wheels and tires like the Camry but could go a long way in driving the economy, especially during tough times.
Here is an appropriate question: Should Americans be buying more Toyota automobiles in lieu of the company's responsible behavior during our recession? Why not? If a Japanese company shows this level of concern for and loyalty to American workers, shouldn't that company be rewarded by American car buyers? Shouldn't a foreign company that goes to such lengths to protect the jobs of its American workers be rewarded by the public with our buying more of their product?
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Top-level comments on this article: (2 total)Makes sense to me! -RayW {4537.8821}Thanks, RAW, for your comment. ~mogama~
If only other big corporations had caught on to this long ago I think we would be living in a far better world. Thanks again for another great article. Linda DYou are exactly right, Linda. Let's hope that this approach will catch on. What I really like about it is that it is not the result of management fighting with union establishment, nor is it the outcome of employees going on strike. It's just simple good will from one group of human beings to another, with both groups helping one another for the benefit of all. Thanks for your comment. ~mogama~
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