More Skeletons in the Closet for "Friendly" Toyota

[Uzzy]

Originally Posted by MaxLegroom

Let's see what it's like when Chinese factory workers insist on a middle class way of life.

Middle class? The UAW is well above that. $100,000 with some overtime? I wish I could pull that in. I'd be lucky if I got half.

[joemac]

Originally Posted by Uzzy

Middle class? The UAW is well above that. $100,000 with some overtime? I wish I could pull that in. I'd be lucky if I got half.

How does one come up with the figure of $100,000 for a UAW line worker?

$27 x 40 x 52 = $56,160 <-- Lower end of middle class, no one is getting filthy rich, or bathing in dollars making that per year.

[MaxLegroom]

Originally Posted by Uzzy

Middle class? The UAW is well above that. $100,000 with some overtime? I wish I could pull that in. I'd be lucky if I got half.

You've seen what some of the math looks like. However, I suspect that the Chinese government would roll in with tanks if those people stood up to demand even a fraction of the class of life a UAW worker gets. I actually have a certain sympathy for the UAW worker, it is not unlimited but the figures that joemac mentions are the basic requirements if you plan any pretension of a middle class life and intend for your wife to raise your children without having to juggle a second job with it. By basic requirements, I mean a minivan for the family to be transported in, something a bit more sporty for you to drive to work, a average priced single family home, things like that. I concur that when line workers gripe at Lutz for pricing Cadillacs out of their reach, and some complain about having to give up the vacation home I get pissed, too.

Trouble is that if you visit the NLC website, you'll begin to discover the sheer rot involved here. Getting their hands on Toyota will be a big step, but I'm suspecting that if we knew the real cost of what we buy, we'd think twice about it.

Of course, that could become academic...http://en.wikipedia.org/wiki/Malthusian_catastrophe

[AMERICA 123]

Originally Posted by tholland

PR Newswire picked the story up as well as Edmonds...

http://www.edmunds.com/insideline/do...ticleId=127529

Edmunds is be commended on this one in the strongest possible terms - best job of reporting this in unbiased fashion - in the world - at least as we speak. Same for The Auto Channel.

Shameful how many others are 'ducking' this important report - even just as a news item ala Edmunds.

I believe The Chicago Tribune had an acceptable, but too brief report somewhere although now I can't find it.

*Edit: Here's another link from Daily Green...
http://www.thedailygreen.com/living-...-abuses-460608

In the middle with strongly pulled punches ie mild spin for Toyota that shouldn't be there we have another ridiculously small group like Daily Green , Autoblog and a few others.

Their coverage is flawed by part of their additional text BUT they too, deserve a positive recognition of a lesser sort; at least they had the balls and the decency to mention it.

Can you imagine what we would have here if this was about GM or Ford ???

Well, lets look at just some of Toyotas response - the initial spin if you will.

From the Daily Green link;

Yikes! Say it isn't so, Toyota!

"They're looking into this," says Wade Hoyt, a Toyota representative in New York.

"It's about overseas entities, so we're going to need a response from Japan."

Hoyt did add that the one charge against Toyota's U.S. operations-- that it uses a two-tier, low-wage model that amounts to a "race to the bottom" -- was a bit unfair since the United Auto Workers had agreed to it. < See, its always the UAW's fault. >

And the company may well claim, in its defense, that its overseas operations are forced to deal with the labor conditions that actually exist in the host countries.

Toyota's world headquarters has issued the following statement: "We are reviewing the lengthy report issued today by the National Labor Committee. As the well-being of our workforce and suppliers is one of our highest priorities, we are taking the allegations , < ie exposure of what we do and how we do it > seriously."

[AMERICA 123]

Gee, is this possible - that AUTOMOTIVE NEWS, CONSUMER REPORTS, Forbes, Green Car Congress, Hybrid Cars, The University of California, MIT, The Wall Street Journal, The NY Times, Bloomberg, Goldman & Sachs, and some others are just going to ignore this and not follow up ???

Everybody realizes right, that if this part of the truth about them gets out, it will cost them greatly - maybe even destroy them ?

[tholland]

Originally Posted by AMERICA 123

In the middle with strongly pulled punches ie mild spin for Toyota that shouldn't be there we have another ridiculously small group like Daily Green , Autoblog and a few others.

Their coverage is flawed by part of their additional text BUT they too, deserve a positive recognition of a lesser sort; at least they had the balls and the decency to mention it.

Can you imagine what we would have here if this was about GM or Ford ???

Well, lets look at just some of Toyotas response - the initial spin if you will.

From the Daily Green link;

Yeah, that was my impression too. They fail to see that those sullied parts are coming here to be assembled too.

And Toyota actually felt they had to respond to this and yet the main news channels didn't see fit to report it?? You're right, they have some serious pull.

[bigtime]

I wonder how this forum would react if this was GM? Anyone check a pro-toyota forum, how are there "fans" spinning this?

Bottomline is you don't get to be number one in the world by being nicey nice. Every corporation does things like this. Thats how the world works. Whether its nike, walmart, ralph lauren, toyota, etc.

This is like being shocked to find out soldiers kill people.

[AMERICA 123]

Originally Posted by bigtime

I wonder how this forum would react if this was GM? Anyone check a pro-toyota forum, how are there "fans" spinning this?

Thats a thought although some have a blind kind of loyalty there.

Bottomline is you don't get to be number one in the world by being nicey nice. Every corporation does things like this. Thats how the world works. Whether its nike, walmart, ralph lauren, toyota, etc.

No, thats way too broad a generalization - Toyota is in fact, one of the worst at all this and definitely the worst in the industry.

Its the real basis of their last 16 years of success - and this plus a long run earlier of exploiting their supplier base are possibly most of the whole story.

Toyota thru this exploitation is creating other unnecessary pain and suffering as well, particularly in the United States.

This is like being shocked to find out soldiers kill people.

No, not really - its the difference between how the United States and Japan conducted themselves as Nations during World War Two.

************************************************** ***

tholland,

Yeah, that was my impression too. They fail to see that those sullied parts are coming here to be assembled too.

And Toyota actually felt they had to respond to this and yet the main news channels didn't see fit to report it?? You're right, they have some serious pull

Unbelievable really.

I can predict how they're hoping to handle it - part of that is in play right now - on this forum.

Maybe this will lead to other things - like their real world safety performance record and what exactly their 'marketing' activities entail - and who's been paid what and how to do what and how - and when.

Somebody needs to organize a worldwide boycott - it would only take a week or two of that to affect massive and desirable change.

[joemac]

http://www.thestar.com/News/World/article/283048

[Uzzy]

Originally Posted by joemac

How does one come up with the figure of $100,000 for a UAW line worker?

$27 x 40 x 52 = $56,160 <-- Lower end of middle class, no one is getting filthy rich, or bathing in dollars making that per year.

I personally know many line workers that pull in round about $100,000 with some overtime here and there. Double time Sundays, triple time holidays, it adds up. Couple over here, extra shift there. And I don't know any big 3 line worker in this area that makes a measly $27/hr, you're dreaming.

And then there's the benefits on top of it.

[jry]

Originally Posted by Uzzy

I personally know many line workers that pull in round about $100,000 with some overtime here and there. Double time Sundays, triple time holidays, it adds up. Couple over here, extra shift there. And I don't know any big 3 line worker in this area that makes a measly $27/hr, you're dreaming.

And then there's the benefits on top of it.

True. Even the Fork Truck drivers in Michigan historically earned the low six figures. Skilled could easily earn over 100K.
Remember, Flint (back in the day) was one of the most prosperous cities in the US. You get that "title" by having a high average wage.
I worked in high ticket retail in downtown Flint during those times. I was 19 or 20. Money was dripping out of folks wallets. Most folks thought it would never end.

[joemac]

Originally Posted by Uzzy

I personally know many line workers that pull in round about $100,000 with some overtime here and there. Double time Sundays, triple time holidays, it adds up. Couple over here, extra shift there. And I don't know any big 3 line worker in this area that makes a measly $27/hr, you're dreaming.

And then there's the benefits on top of it.

The point is made that the example provided the person(s) are working over and above the base 40 hour work weeek, and therefore are compensated for it. There's absolutely nothing wrong with that is there? This is in starch contrast to the alleged complaints against Toyota in Japan.

Most full time positions in the US have benefits of varying nature, there's nothing out of line with having benefits.

Not sure why the hate toward American's making a decent wage and living. It's a good thing for all of us, not just the person making the wage.

[Uzzy]

Originally Posted by jry

True. Even the Fork Truck drivers in Michigan historically earned the low six figures. Skilled could easily earn over 100K.
Remember, Flint (back in the day) was one of the most prosperous cities in the US. You get that "title" by having a high average wage.
I worked in high ticket retail in downtown Flint during those times. I was 19 or 20. Money was dripping out of folks wallets. Most folks thought it would never end.

Exactly. And they thought the gravy train would run forever.

To answer the post above this, I don't have a problem with people reaping the rewards of a job, but they treat it like they are entitiled to it. They don't assume they have a base pay of around $56K, they treat their base pay as the ~$90K-100K and spend accordingly. They don't take the extra and save it, or invest it, or do something other than buy a few Jet-skis, and or a summer cottage and such. Then when things do inevitably slow down, they don't get those perks anymore and they are screwed! Then they whine and complain and breed a feeling of contempt towards them. I think even the ~$56K is a bit much for what they do, but I wouldn't gripe it.

The running joke around here when you get a bunch of overtime is "don't be like a Ford worker." Becuase what they do when they get a bunch of overtime is buy things like crazy. But they don't buy them outright, they finance them and soon enough, the overtime runs out and the bank takes them back or they're having a fire-sale in the classisfides.

[AMERICA 123]

Uzzy, have you even read the report - just once - fast ???

Here are the wages for the two best paid labor classifications for Toyota auto workers - in Japan.

We will deliberately ignore all the other shocking aspects of being a worker at Toyota and just focus on wages.

We will also ignore overseas operations - many of which are far worse, and will shall initially ignore subcontractors for Toyota in Japan which is also worse

Note: These hourly wages have not been corrected for all the mandatory/ pretend voluntary hours that are put in with no pay.

We will also set aside things like their higher cost of living.

Group 1, Full Time assembly line worker (Japan).

Wages at the Toyota Plant

The base wage of a full-time assembly line worker at Toyota is $19.34 an hour. However, when various bonuses are added, the average full-time wage rises to $20.49.

Full-Time Workers Earn $20.49 an Hour

Toyota full-time workers earn a base wage of 350,000 Yen a month, with an average of another 20,833.33 Yen in bonuses. (As of April 24, 2008, the Wall Street Journal put the exchange rate at 104.42 Yen to $1.00 U.S. Dollar.)

• $20.49 an hour
• $819.55 a week
• $3,551.36 a month
• $42,616.36 a year

*********************************

Group 2 ( second best possible) Japanese Temporary Worker (Japan)

Temporary workers—who make up one-third of Toyota’s assembly line workers—are paid a base page of $11.05 an hour, which rises to $12.13 when bonuses are included.

Temps earn just 60 percent of what full-time workers earn.

When benefits are added, the wage disparity is even greater.

(For example, full-time workers receive child benefits of $18.63 a month for one child, $33.52 for up to three children, and $52.67 for four or more children.

Also, at Toyota’s cafeteria, full-time workers eat for $3.96 per meal, while temporary and subcontract workers have to pay around $5.94.)

Temps Earn $12.13 an Hour

Temporary workers earn a base wage of 200,000 Yen a month with an average of another 18,583.33 Yen in bonuses.

• $12.13 an hour
• $485.28 a week
• $2,102.89 a month
• $25, 234.63 a year

Temps earn $8.63 (41 percent) less than full-time workers.

For every temp Toyota hires, in comparison with full-time workers, the company saves $17,381.73 a year in wages, not including the significantly lower benefits paid to temporary workers.
By hiring 10,000 low-paid temps to work on its assembly lines, Toyota is able to cut its direct labor costs by $174 million a year.

************************************************** *****
Group 3, Foreign Temporary Worker located and working in Japan.

In July 2007, the International Herald Tribute reported the case of 22 year old Ms. Le Thi Kim Lien, a guest worker from Vietnam.

She often worked 15 ½ hours a day from 8:30 a.m. to past midnight, seven days a week, while being paid just half of the legal minimum wage at a subcontract plant called TMC, which supplied Tokai Craft, which in turn was under contract to supply auto parts to Toyota and Nissan.

Ms. Le and the other Vietnamese workers were fined 15 cents for every minute they took in the bathroom.

She and her coworkers sewed arm and headrests for Toyota cars.

It is typical for guest worker “trainees” to earn—especially during the first year when they are not covered by Japan’s labor laws—Just 50,000 to 60,000 Yen a month, or $478.84 to $574.60.

Guest Workers Often Paid Less Than Half of the Legal Minimum Wage of $7.85 per Hour

• $2.76 to $3.32 an hour
• $110.50 to $132.60 a week
• $478.84 to $574.60 a month
• $5,746.03 to $6,895.23 a year

After deductions for food, housing, local and national taxes and other necessary expenses, some guest workers estimate their take home wages for the entire year amount to less than $600.

In September 2006, the Japanese Mainichi Daily News reported that labor authorities warned 23 subcontract plants supplying Toyota, that hundreds of their Vietnamese workers were being paid below the minimum wage.

Of the 40 small subcontract plants producing textile related auto parts—like seat, arm and head rests—23, or 60 percent had serious labor violations.

Apparently, these serious violations had been going on in broad daylight for at least five years, since 2001.

These guest workers were officially brought in under the “Toyota Technology Cooperative” program which was supposed to be supervised by the Japan International Training Cooperation Organization, which was ostensibly set up to train foreign workers in technology occupations, but in fact turned into a cover for human trafficking and sweatshop abuse.

Second and third year guest workers are covered by Japan’s labor laws, and as such should earn at least the legal minimum wage of 820 Yen or $7.85 per hour in the auto industry in Aichi Prefecture.

However, especially in the small subcontract factories supplying textile related goods to Toyota, even second and third year workers continued to earn as little as 300 Yen an hour, or $2.87, which amounts to just a little over one-third of the legal minimum wage of $7.85.

Despite legal limits on overtime, foreign guest workers typically toil 75 hours a week, putting in 35 hours of overtime on top of their regular 40 hour workweek.

Nor in most cases is overtime paid correctly—at the legal overtime premium of at least 125 percent, or $9.81 an hour.

With guest workers, they paid—at best—straight time or, more often, well below the legal minimum wage.

For a small subcontract plant, such cheating adds up. For a typical 75 hour workweek, the guest workers should have earned $314 for the regular 40 hours of work paid at $7.85 per hour and another $343.44 for the 35 hours of overtime paid at the legal 125 percent premium, or $9.81 per hour.

However, instead of earning $657.44 a week, many guest workers are paid just $215.25 for the week, meaning they are cheated of $442.19, or 67 percent of the wages legally due to them.

In the course of a year, at this rate, each guest worker could be robbed of nearly $30,000 in hard-earned wages due to them.

It is not just the Vietnamese who are being exploited.

While we were in Japan in April, a guest worker from China—a woman who had been working for three years at a subcontract factory supplying Toyota—reported that she and her coworkers were working 16 hours a day, from 8:00 a.m. to midnight, seven days a week, while they were paid just 300 Yen an hour, or $2.87, which—again—is just about one third of the legal minimum wage due to them, of $7.85.

All overtime was mandatory, and the legal overtime premium was not paid.

The workers received the same illegal $2.87 an hour wage no matter how many overtime hours they worked.

[left]The guest workers are in a trap and especially terrified of having their names or even that of their plant mentioned, fearing that any public exposure could lead to their immediate firing and deportation. [/LEFT]

There have also been allegations of at least some sexual harassment of foreign guest workers.

Besides being robbed of their wages, factory owners also cheat the workers in other ways.

As mentioned, guest workers are neither free to relocate to better factories or change the housing management assigns them.

Typically, three, four or even five workers are housed in a small apartment, which would have a market rent of no more than $500 a month.

Instead, factory management often charges each worker up to $380 a month in rent, meaning that even if just three guest workers shared the small apartment, they would be paying $1150 a month, or more than double the true cost of the apartment.

Some subcontractors even extort money from vulnerable guest workers, hinting that they will be forcefully deported if they complain.

In March 2008, Japan’s Justice Minister agreed to crack down on violations of guest worker rights, but despite some recent improvements, many of these abuses continue.

[tundrakiller]

am gonna make a copy of this and have it sent all over.