Toyota Australia Says Ongoing Work Stoppages Costing A$10 Million a Day

Toyota Australia says work stoppages are costing it A$10 million ($9.8 million) a day and warns that 3,300 employees at its suppliers will be laid off this week due to the labor action.

Australian Manufacturing Workers' Union and Communications Electrical Plumbing Union members are midway through another 48-hour strike in a continuing wages dispute with the auto maker.

Altona plant production down 3,300 vehicles.

Toyota says the work stoppages at its Altona plant and Sydney and Melbourne parts warehouses are having a severe impact on the local auto industry and the strikers’ families.

The auto maker also says about 3,300 vehicles have not been built as a result as a result of the ongoing walkouts that started Sept. 2.

“The industrial action hits employees’ hip pocket,” Toyota Australia Mfg. Executive Director Chris Harrod says in a statement. “Cleary the impact of losing five days of pay this month must be felt by the families of Toyota employees and suppliers.

“The company wants to progress discussions so we can resolve the wages issues effectively and immediately.”

Toyota plans to call a vote on its proposals under terms of the Fair Work Act, which allows a company to conduct a secret ballot to seek endorsement by a majority of voting workers. The timing is not yet confirmed.

“This will be the first time employees have had the opportunity to decide on the offer we have put on the table,” Harrod says. “Strong feedback from employees is that they want the company to present the WPA (workplace agreement) for their consideration and vote.”

He says the three plant stoppages this month have impacted production and Toyota’s ability to meet orders including exports. The company says it has never missed a shipment since it began exporting vehicles to the Middle East in 1996.

“Failure to supply vehicles to our export customers raises concerns about our ability to meet committed customer orders and places a dark cloud over our ability to maintain our position as the preferred distributor to the Middle East,” Harrod says.

Toyota does not believe labor stoppages are necessary, he adds. “We believe our offer of 11% over 39 months is fair and reasonable given the delicate position of the automotive industry.”

The unions are seeking 12% over 36 months.