Metals News
Toyota North American plant shutdown and extension of about 40,000 employees face temporary suspension
Apr 9,2020
The content below was translated by Tencent automatically for reference.

SMM: according to the Japanese Economic News, on April 7, shortly after Honda and Nissan announced the temporary dismissal of more than 20, 000 employees in the United States, Toyota announced on the 8th that as the infection of the new coronavirus continues to expand, Toyota's production suspension in North America will be extended to May 1 in order to prevent employee infection and cope with the pressure of reduced car demand.

At the same time, about 5000 Toyota employees in the United States will be temporarily suspended, while about 30, 2000 regular employees, including Mexico and Canada, will continue to maintain their employment relationship with a combination of paid leave and temporary suspension.

It is reported that Toyota stopped production in three North American countries on March 23 for two days, but due to the continuing impact of the epidemic, the time has been extended three times and is tentatively scheduled to restart on May 4.

Of the more than 40, 000 factory employees affected this time, more than 5000 temporary workers in the United States will be suspended from April 8. About 32, 000 contract workers can choose unpaid or take advantage of their paid leave between 13 and 17 days. After the 18th, of the five working days per week, four days of special paid leave will be granted, with the remaining one day available either unpaid or ordinary paid leave.

It is reported that the jobs and benefits of the affected employees will be retained and Toyota will be allowed to resume work when the plant is reopened.

In the United States, unemployment benefits can be applied for during temporary suspension, and in addition to subsidies from each state, the federal government has introduced a new crown virus subsidy system of $600 a week (about 4238 yuan). As a result, although temporarily suspended, but the income has also increased a lot.

As a key region of the North American market, the United States has become the "epicenter" of the global epidemic. New car sales fell by about 40% in March from a year earlier, and continued restrictions on travel across the country have led to the closure of many stores. It is still unclear whether Toyota and other carmakers will be able to start work as scheduled in early May.

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