Union activists urge Toyota to use internal reserves to help revitalize local economy

Japan Press Weekly

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Union activists urge Toyota to use internal reserves to help revitalize local economy

Representatives of a labor union and a small- and medium-sized enterprise owner’s association on February 8 visited the Toyota head office in Toyota City, Aichi Prefecture to demand that Toyota play a role in revitalizing the local economy by using its internal reserves.

In the meeting with a Toyota official, they urged Toyota to use a part of its internal reserves to increase the unit price of parts for subcontractors, improve temporary workers’ working conditions, and hire more workers as full-time workers.

Aichi Prefectural Confederation of Trade Unions (Ai-roren) President Kurematsu Saichi pointed out, “The fundamental reason for Toyota’s huge recall of vehicles is that Toyota imposes cost reductions on subcontractors. Since Toyota announced about a 30% cut in the unit price for subcontractors late last year, subcontractors are increasingly concerned about whether Toyota is able to secure car safety.”

Concerning the issue of establishing a production system placing high priority on product safety, Kurematsu called for an increase in the unit price of auto parts to enable subcontractors to offer their employees a pay raise.

- Akahata, February 9, 2010