When Toyota Motor Corp. (NYSE: TM) announced that is had sold its one-millionth Prius hybrid car, environmentalists worldwide stood up and cheered. After all, it was Japanese foresight that saw the need for 45-MPG cars more than just a few years ago and all it took for the sales to take off was the onslaught of $4/gallon gas. But as this National Labor Committee analysis explains, is Toyota the touchy-feely auto manufacturer that it seems to be? In a word, no.The push to get products to the market as fast as possible (hopefully, the "right" products) has turned Toyota into a labor-abusing monolith of corporate greed, according to the article. While General Motors Corp. (NYSE: GM) pays its workers very well from a labor standpoint and gives the labor force a large voice, Toyota's workers are overworked, underpaid and abused in other ways. Is there a good, middle ground? The appetite of U.S. consumers to purchase more fuel-efficient cars -- something Detroit is still unprepared for in many ways -- is giving Toyota unprecedented levels of new business. All this business is creating demand, and in turn, Toyota must form a method to get those products out the door. According to the NLC, turning the screws on human labor rights is the key to all this.
Is it really the "race to the bottom?" As in, the bottom of the price barrel where "worst practices" are adopted as a form of competitive pressure to ensure those sales continue to rack up? The distinction between labor practices for Toyota's Japanese workers and GM's American workers is pretty stark in this example. It seems to strongly suggest that all those Prius owners who believe they are helping the world by bellowing out less emissions and wasting less gas are paying for it in another way -- in the form of human rights abuses they never see.
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
Reader Comments (Page 1 of 1)
6-23-2008 @ 11:53AM
David said...
Nobody is forced to work for Toyota. This article has Liberal written all over it.
6-23-2008 @ 1:52PM
Den said...
This article is nothing but management bashing for the purpose of installing a union in Toyota plants. Union organizers will stop at nothing to foist their brand of socialism into a successful capitalist enterprise. Unions lie cheat and bully to get their way.
Workers have to freedom of choice to come and go as they please. It seems that many thousands of workers have found Toyota to be a good employer. They can see that the price of UAW contracts has crippled American automobile manufacturing. Don't spread that UAW disease.
6-23-2008 @ 3:06PM
truthhurts said...
Sure sucks that the Toyota fan boys are finding out the truth about saintly Toyota.
Already making up excuses for the crap Toyota has pulled doesn't disguse the facts. Like how Japan lies about currency, how Toyota abuses workers around the world (don't search out the union efforts in Ontario if you love the immaculate T) or the three million sludge prone engines and the BS Toyota did to cover up that mess.
Would Toyota use sweat shops, not pay contract workers, you bet. It's all part of moving forward, like off a cliff.
6-23-2008 @ 6:20PM
sterling jones said...
I totally agree with Den and David. Temp workers here in America for other companies often work for less than half the wage of full time employees and hire illegal immigrants. Also, the fact that some workers refused to take their breaks to continue working is not Toyota's fault. The workers themselves decided to increase their daily production. I myself would take such a job if necessary, given the fact that most temp jobs I have worked in the past paid about half of what Toyota pays. The white collar argument section is also complete bullshit, because accountants and investment bankers work in the same type of environment.
6-25-2008 @ 7:20AM
Dean Burnett said...
Having been a UAW worker for the last 38 years, I see a lot of retoric from both sides of the issue. I always look for evidence before taking sides on an issue or discrediting it. On the other hand, if anyone that thinks the UAW is a "disease" they should take high school economics over again. People earning decent wages in decent enviroments built this country into what it was more than any other factor. Something that could not have happened without unions.
6-26-2008 @ 3:42PM
Blue Summit said...
We agree that "Human Rights is Risky Business". Investors have to be aware of these malpractices and we aim to protect our investors against the risks of labor mandates and negative corporate image that can significantly affect shareholder value.
Read more at http://www.bluesummitinvest.com/blog/?p=8
6-27-2008 @ 3:34PM
Bobbi W said...
Toyota certainly came to the market in a timely fashion, establishing plants away from urban, albeit unionized workers. Toyota also recognized a laissey-faire government who would not provide government sponsored health care like the Japanese government in so doing Toyota could undercut the cost structure of the American car companies, another reason for a young workforce. Plus, Toyota provided a good product to the market. All these things said, GM is making great cars now, look at the new Chevrolet Malibu which won the best in class for the recent JD Power new car survey as well as the 2008 North American car of the year. It seems that Americans are giving up on GM and punishing them severely while GM is paying the pensions of many of our grandparents, something that Toyota will not be doing. Additionally, we cannot discount the power of American engineering. American engineers rock the world! Realizing that GM made some mistakes, don't abandon ship now as the product line is better than ever! The Sierra/Silverado is the most reliable pick-up truck and the most fuel efficient in its class. Test drive the new Buick Enclave and remember that Buick tied Lexus for first place in the JD Power 3-year class. Go GM!