Dec 12

WITLife #7 – Toyota Shock (Part 2)

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WITLife is a periodic series written by professional Interpreter/Translator/Writer Stacy Smith (Kumamoto-ken, 2000-03).

Not to continue the doom and gloom of yesterday’s post, but a good portion of today’s news was again devoted to Toyota Shock. For this company itself, out of 9,200 temporary workers, 3,000 of them will be laid off. In regard to next year’s sales forecast for the whole Toyota group, an estimated 9.5 million cars were anticipated to be sold to the American market, but this forecast has been reduced to 8 million.

The car company Isuzu fired 1,400 workers from its factory in Kanazawa, and those affected took it upon themselves to fight back. Footage was shown of these workers handing out pamphlets to co-workers asking them to join their union and asking executives to retract their dismissal. Evidently these cuts came without notice, causing those protesting to ask Isuzu how they are supposed to sustain themselves and what guarantees the company will provide. Negotiations between the parties will take place on the 15th of the month.

Sony’s extensive cuts of 16,000 employees will impact 10% of its 57 electronics factories around the world. In regard to this news, French workers erupted in protest. Sony has also announced that by March of 2010 no more LCD televisions will be made here in the States. One factory that will close is its Pittsburgh plant, and one of the 560 workers who will be losing their jobs described his reaction as “numb and sad, but not angry.” In order to cut costs, all production for the North American market that took place here in the States will be moved to Mexico.

According to a management consultant who focuses on automotive issues, the industry has entered a transition period. “Up until this point the auto industry has supported the Japanese economy, but now it’s time for a movement from a focus on quantity to one of quality. Automakers need to prove themselves and restore people’s confidence in order to receive new investment.”

Finally, in recognition that economic problems are connected to politics, Japan’s Finance Minister met with 13 leaders from various industries to discuss the current malaise and what steps need to be taken. Representatives from companies such as Sharp, Toshiba and Mitsubishi attended. Stay tuned to see what measures they will be implementing!