Toyota Works to Restrain Labor Costs

When US auto companies tired to fight the unions in the 30's, the US Government intervened on behalf of the labor unions. Today while Toyota is working to drive down wages and maintain a cost advantage over domestic manufacturers (and European manufacturers) not only are government entities silent, they actively assist Toyota in crushing domestic competition by providing huge tax incentives and even cash to attract Toyota plants. No wonder Toyota is making so much money.

Lenin was almost right - it is not capitalist that will furnish the rope to hang themselves, it is the government. Unfortunately, after the capitalist are hanged, ordinary workers will be next. I am sure Toyota is hoping to drive labor costs down to the level the Chinese are paying. I see a bright future for the workers at the Tundra plant in Texas. 80 hours weeks, a sleeping mat next to the production line. Oh what a wonderful world it will be after Toyota eliminates their competition. You asked for it, you got it - Toyota! Moving forward - until there is no American Industry left.

Ed

Toyota is not trying to drive down the unit cost of labor (the amount each employee earns). It is trying to keep the total labor cost from rising out of control. One of the problems is health care costs, which consistently rise at about 10% per year, even when inflation is 3%.

You obviously have a reading comprehension problem.

At this point, I was going to say "good post". Then...

Utter nonsense.

More nonsense.

Not possible.

Define "American Industry".

I guess Toyota is worrying that they may soon have to provide much better medical care and pension coverage that is closer to what union worker receive. From what I've read more of their workers apparently are thinking of joining a union. .

mike

No doubt you do not get the same level of wages and benefits from your employer either. Unless of course you are a salaried worker in a union plant . ;)

mike

Toyota's success is not about low labor costs, it's about building the vehicles people want to buy. People are now slightly more for Toyota vehicles. On medical care costs, it's high time the USA had a national basic health care system. Canada's National Health Care gives Canada an advantage over he USA within NAFTA.

Ed White may not have ever visited the Toyota MegaPlant (TMMK) in Georgetown, KY. The best idea of American Industry I know of.........24% of the employees are college graduates, 24% are women, and less than 1% are Japanese. And if you're an employee there, and have a perfect attendance record for a year, they put your name in a hat, and if you're one of 15 names picked, you drive home a new Toyota that you've helped build. Toyota even pays the sales tax and license for your new car. Oh, and one more thing........since

1988, when the first Camry rolled off the line there, they.....have .....never.....had.......one ....employee.......laid....OFF. How's them apples?

My thought is who really cares? Vehicles are more then transportation means, they are status symbols. As such, we wind up paying way to much to get from point A to B. Depreciation, fuel mileage, insurance it all adds up to a lot of money that really doesn't have to be spent. But it's disposable income so we spend it. When things get tight the frills will disappear and transportation costs will adjust the vehicles to what people can comfortably afford. GM and Ford made a lot of money through the years, they know what it takes to stay in business, they are making the needed changes. There is enough money printed every day that all car makers can do well. Someday the music will stop and the band will have to be paid, but probably by our kids or grandkids, not us.

Source? ;)

mike

The company I work for didn't lay off anyone for over 50 years, then they started laying off people right and left...

Ed

Kodak?????