Toyota Australia Workers Strike Altona Plant

More than 3,300 Toyota Australia workers walk off the job at the auto maker’s Altona Plant in Melbourne in the first of four 24-hour strikes over pay upgrades, leaving production at a standstill.

The Australian Manufacturing Workers' Union tells the Australian Associated Press another three weeks of Thursday/Friday stoppages are planned.

Strike halts Aurion production in Australia.

The labor action is affecting production of the 4-cyl. Camry, Hybrid Camry and 6-cyl. Aurion models that are built at a rate of 559 cars a day. The walkout also has shut down parts centers in Melbourne and Sydney.

Toyota says the stoppage was called by the Australian Manufacturing Workers Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia.

The auto maker says it proposed a wage increase of 11% over 39 months in late July and, on Thursday, offered three options for a 7% increase over two years plus a bonus. The unions rejected all proposals.

“The company is disappointed that industrial action is taking place,” Toyota says in a statement. “Toyota Australia values its employees and believes its offers have been fair and reasonable.”

Dave Smith, acting national secretary for the manufacturing workers union’s vehicle division, tells AAP the two sides aren't too far apart.

He says Toyota only offered an immediate 1% raise to employees, who have gone without a pay increase since the spring of 2010, and the issue is the timing of the increases.

“Due to cost issues with the new Camry, Toyota's ability to pay us is restricted,” Smith says. “Also, in terms of the Japanese (fiscal) budget year, which runs from April to March, there's also some pressure on in terms of that.”

Toyota’s latest offer is for a 2-year agreement with an immediate A$500 ($535) payment and a 1% raise, plus 3% rises in both April 2012 and 2013, he says.

“It's been close to 17 months since the guys last received an increase, so when the company puts 1% on the table it's a hard offer for them to sell,” Smith tells AAP.