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Union activists urge Toyota to use internal reserves to help revitalize local economy

Representatives of a labor union and a small- and medium-sized enterprise ownerfs association on February 8 visited the Toyota head office in Toyota City, Aichi Prefecture to demand that Toyota play a role in revitalizing the local economy by using its internal reserves.

In the meeting with a Toyota official, they urged Toyota to use a part of its internal reserves to increase the unit price of parts for subcontractors, improve temporary workersf working conditions, and hire more workers as full-time workers.

Aichi Prefectural Confederation of Trade Unions (Ai-roren) President Kurematsu Saichi pointed out, gThe fundamental reason for Toyotafs huge recall of vehicles is that Toyota imposes cost reductions on subcontractors. Since Toyota announced about a 30% cut in the unit price for subcontractors late last year, subcontractors are increasingly concerned about whether Toyota is able to secure car safety.h

Concerning the issue of establishing a production system placing high priority on product safety, Kurematsu called for an increase in the unit price of auto parts to enable subcontractors to offer their employees a pay raise.

- Akahata, February 9, 2010


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