Toyota to expand discretionary work system

August 2, 2017

NAGOYA- Top Japanese automaker Toyota Motor Corp. plans to expand the scope of its discretionary work system as part of its efforts to improve productivity amid intensifying industry competition, informed sources said Wednesday.

Under the new system, Toyota is seen paying a monthly allowance of 170,000 yen per person equivalent to 45 hours of overtime, regardless of actual after-hours work.

If actual overtime tops 45 hours, Toyota will pay extra, the sources said.

The new system is expected to target some 7,800 section chief-level officials in clerical and engineering positions, the sources said.

Toyota has already presented a proposal on the new system to the labor union side, aiming to introduce it by December, the sources said.

The government is preparing to submit legislation to exempt high-income skilled professionals from working-hour limits to an extraordinary session of the Diet, Japan's parliament, in autumn.

Without waiting for the implementation of the measure, Toyota will carry out its own reform that better fits the reality of work styles in the manufacturing industry.

Currently, Toyota allows some 1,700 section chief-level officials in business-planning and specialist jobs to work under the existing discretionary system, providing a monthly allowance of about 100,000 yen to compensate for assumed overtime work. Jiji Press