Background:  

In 2009 Toyota realised they had to cut costs by at least 10%. Crucially for their success they decided to consult with their workers, and agree how best to do this while keeping people working. In this way Toyota maintained their staff commitment and skills base, allowing them to make a speedy response to any upturn.

Approach:  

Consultation and staff involvement and agreement was central to the success of this approach. 

A statement from Toyota explained: "Following extensive consultation with our employee representatives, and with input from all employees, it has been agreed that the best way to secure long term employment is to temporarily reduce working hours and base pay by 10%."

What happened:  

Early in 2009 Toyota cut 200 temporary jobs and opened a voluntary redundancy scheme. When they realised they had to go further, they intensified consultation and staff involvement. The cuts in hours and base pay were announced in March 2009, to start in Burnaston and Deeside from April 2009 and last for one year. In the event Burnaston resumed full time hours for August and September due to increased demand because of the scrappage scheme.