- Apr 25, 2006
Toyota pressuring suppliers in homeland to cut costs, benefits?
That's what Akahata seems to indicate in Political Affairs. According to the writer, Hiroshi Okuda (pictured), chairman of the Toyota Motor Corporation and President of the Japan Business Federation, has been calling for an increase in contingent workers ('temps', temporary or contract) in an effort to control costs. In a trend different from U.S. staffing agencies (which are increasingly providing health and other benefits to their workers), similar companies in Japan are facing pressure from clients likeToyota to provide such employees cheaply. Takagi Corporation, which is a major staffing agency for Toyota affiliates, did not provide health coverage for 40 percent of its temps last year. And Denso, Toyota's major part supplier, did not provide health benefits for its contingent employees, even though it was reportedly legally obligated to do so.
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[Source: Political Affairs]