Toyota Australia Workers Strike Over Wages

Toyota Australia workers are on strike for the second time this month, with talks between their unions and the auto maker stalemated over wages.

The 48-hour strike by members of the Australian Manufacturing Workers Union and Electrical Trades Union has halted production, with only 400 of 3,300 employees at the Altona facility showing up for work Thursday.

Work stoppage at Toyota Australia halts Camry production.

Another walkout is planned for next Thursday and Friday.

Toyota Australia President and CEO Max Yasuda says the auto maker’s offer of an 11% pay increase over 39 months is fair and reasonable. The unions are seeking 12% over three years.

“We have shown flexibility in seeking an agreement,” Yasuda says. “The company expects that an agreement should be reached without the need to take industrial action.”

He says the rolling stoppages and work-to-rule action have affected not only the Altona plant but also parts centers in Melbourne and Sydney, adding the dispute threatens to seriously harm Australia's reputation as an auto maker.

"We must compete with Toyota plants around the world for the right to build cars and to supply export markets,” Yasuda tells The Australian newspaper.

“We are already under severe competitive disadvantage due to currency, high local costs and reduced volumes. We need to work together to reduce costs and improve our competitiveness,” he says.

“If Australian operations are uncompetitive and perceived as unreliable, these cars can be made in another Toyota plant.”

The Altona factory builds the 4-cyl. Camry, hybrid Camry and 6-cyl. Aurion models, with 70% of Altona production exported, primarily to the Middle East.

Yasuda says lost production might not be recovered, leading to product-delivery delays or canceled customer orders.

“The stoppages will cause significant short-term pain and have long-term consequences for suppliers, dealers and customers,” he says.