By Jon Miller | Post Date: September 3, 2006 10:25 PM | Comments: 4
The September 4, 2006 Japan Times reports Toyota allies warned over low pay by Labor authorities in Japan.
Twenty three Toyota suppliers in Toyoda, Japan have been caught cheating their Vietnamese workers of pay by paying below minimum wage. Two hundred workers have been underpaid by nearly $500,000 over 5 years.
Let's do a little averaging. The 23 Toyota suppliers saved $500,000 so that's just over $21,000 per company over 5 years. This is about $4,000 per year per company. Even over five years, this is hardly significant cost savings.
On the other hand $500,000 to the 200 Vietnamese workers is $500 per year. The average per capita income in Viet Nam: $638 according to the US Department of State.
That's not cost reduction, that's stealing. It's stupid, and wrong.
This is the sort of thing that Darius Mehri experienced and wrote about in Notes from Toyota-land, Japanese managers in supposedly Lean companies behaving badly.
If you believe Toyota PR, "kaizen" and "respect for people" are the two pillars of the Toyota philosophy. This philosophy doesn't yet extend too far into their supply base, it seems.
Happy Labor Day, ironically.Comments are moderated to filter spam and inappropriate content. There may be a delay before your comment is published.