Cartoon by Khalil Bendib
Auto Industry Race to the Bottom
by Barbara Briggs, Special to CorpWatch September 16th, 2008
Beneath Toyota’s buffed shine lies a dark undercoat. The Toyota Corporation enjoys a fine reputation for well-built cars, environmental innovation, flexible production lines and effective management practices. But in its quest for ever-increasing efficiency, profitability and growth, the world’s largest auto manufacturer has sparked a race to the bottom that, like its car sales, is global in scope.
Around the world, the company has been complicit in union busting in the Philippines, and engages in cozy relationships with Burma/Myanmar’s military dictatorship.
In the U.S. – where Toyota has 13 facilities employing some 36,000 people, and sells an average of 56,923 vehicles each week – the need of the Big Three (General Motors, Ford and Daimler Chrysler) auto companies to compete is causing profound changes in the industry.
And in Japan, at its flagship operation in Toyota City, some 30 percent of the workforce is temporary workers who earn as little as half what permanent employees do. In the surrounding area, a network of closely-related supplier companies utilizes thousands of foreign guest workers under conditions that, by many definitions, qualify as human trafficking.
Toyota Japan has also created a work environment so stressful that, each year, an estimated 200 to 300 employees are incapacitated or killed from overwork and stress related illness.
Prius in the Making
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Barbara Briggs is assistant director of the National Labor Committee in Support of Worker and Human Rights. In June 2008, the New York-based NLC released a 60 page report, The Toyota You Don’t Know: The Race to the Bottom in the Auto Industry. The full report can be accessed via the NLC’s website: http://www.nlcnet.org/reports.php?id=562