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15 Jun 2022

Nikkei Asia

Japan: Major auto suppliers to Toyota and Nissan furlough workers due to supply constraints

"Japan auto suppliers furlough workers due to supply snarls" 15 June 2022

Major suppliers to Toyota Motor and Nissan Motor plan to temporarily furlough their employees this month as the global semiconductor shortage and logistical logjams take a toll on auto production.

The moves also show that the supply constraints that have been marring global production for around two years now are affecting Japan's employment environment.

Faltec, which makes hood ornaments and other exterior parts, will implement furloughs of around three days this month for all of its 800-plus employees in Japan, excluding those in the design department.

In addition, TACHI-S, a major seat manufacturer, furloughed 50 workers at its main Hiratsuka plant near Tokyo for 10 days.


Furloughed workers maintain their employment contracts but have their salaries partially reduced for the days they do not work. Japan's Labour Standards Act requires that at least 60% of salaries be paid.

The auto industry accounts for 20% of Japan's manufacturing shipment value, with about 700,000 people working at component makers.

Meanwhile, Toyoda Gosei, a Toyota group company that makes interior materials and other products, will send all of its Japan employees home for one day this month. It will pay 80% of workers' daily wages for the day off, managers excepted.

Musashi Seimitsu Industry, a gear maker that supplies Honda, will skip three operating days over May and June.