The profit of Toyota seems to have come down as employees with its U.S. plant seek unionization.
Toyota is world’s leading carmaker, which recently grabbed world No. 1 cap from the Detroit-based GM, and is paying an average $47.60 per hour to its workers, whereas Detroit-based automakers viz. GM, Ford and Chrysler are paying $73.26, $75.86 and $70.51 per hour respectively.
Once world leaders, Detroit-based trio are battling for their existence as they lost nearly $15 billion last year in all. To cope up with the losses, automakers are pressing the UAW to sweep concessions that would bring their own hourly labor costs in line with Toyota. Automakers’ concession urge have sparked the debate at the U.S. arm of Toyota Motor Corp.
Union supporters claimed that Toyota has registered $14 billion profit and workers got peanuts out of it. Workers uproar has intensified the pressure on Toyota’s board, while doubters fear unionization would leave Toyota as crippled as its Detroit competitors.
Some senior workers with Toyota don’t want any interference of union as they claim that union provides nothing accept chaos at workplace, however another section is in favor of union to fulfill their much needed demands, which they claim can’t be fulfilled in the absence of any strong union amongst workers.
Union supporting workers are worried about the shrinking pay raises, benefit cuts, injury allowance and the use of temporary workers at the plant and want to sort these problems out immediately, however board is neglecting it since long.
Via: Washington-Post
