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Thread: Toyota in the US: Driving efforts to reduce high health-care, pension costs

  1. #1
    Super Moderator Super Moderator Big Booger's Avatar
    Join Date
    Apr 2002

    Toyota in the US: Driving efforts to reduce high health-care, pension costs

    Last year, Toyota's Kentucky plant offered employees early retirement packages. The 150 workers who took up the offer received healthy payouts and left the company.

    Toyota opened its Kentucky plant 20 years ago, in 1986. In the United States, retirement comes after 25 years of service. As Kentucky began operating in 1988, it's estimated Toyota will have to start paying out pensions to anywhere from 700 to 800 plant employees from 2013. The early retirement packages it offered came about in an effort to reduce the huge costs it would have to pay if many people retired around the same time.

    "It did reduce some of the burden," an insider from the Kentucky plant says.

    The Full Scoop:

    I honestly believe this is what is killing Ford and GM. They have all those pensioners to provide for and it's costing them their leading spots as the world's best.

    I wonder if the US had a national health care system if that would help improve the competitiveness of GM and Ford? Ford and GM should also be setting up their own in-house hospitals where they can treat workers BEFORE they get seriously ill and prevent long term illness and disease that in the end will save them money, just as Toyota is doing.... An ounce of prevention...

    Toyota's got it down. They know how to help workers without breaking the bank.

  2. #2
    Security Intelligence TZ Veteran cash_site's Avatar
    Join Date
    Jul 2002
    Software Paradise
    This type of thing is having massive implications in australia too... not so much car manufacturers, but more with the little supply companies! Like the ones who just make steering racks! The workers are starting to retire, but the company doesnt have the cash flow to make payouts... so they end up getting sued, loose more money, and the rest of the workers miss out... a very bad downward cycle! We have many many Union Strikes to argue/complain !

    Hopefully there will be world-wide movement by big companies to be responsible in their retirement payouts... if it wasnt for their workers in Post War boom times... then most of the big players wouldnt exist!

    --- 0wN3D by 3gG ---

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