Toyota Hires Extra Security As Axe Falls On 350 Jobs

Car maker Toyota has hired extra security staff for its factory in Melbourne's south west as the company prepares to sack 350 workers.

Toyota blames the job losses at its Altona assembly plant on the downturn in production levels and the strength of the Australian dollar.

Alison Caldwell reports.

ALISON CALDWELL: Toyota foreshadowed the job cuts in January, blaming the high Australian dollar for falling export sales.

Since then it's assessed more than 3,000 employees at its Altona assembly plant, testing them on workplace behaviour and skills.

The people with the lowest ratings will be forced to leave today and tomorrow - that's around 10 per cent of the workforce or 350 employees.

Paul Defelice is the assistant state secretary of the Australian Manufacturing Workers Union.

PAUL DEFELICE: They'd be very anxious because there is a number of people that will be told today that they are surplus to requirement. So until the morning passes, there's going to be a lot of anxious people.

ALISON CALDWELL: This was announced by Toyota back in January. What's been going on in the discussions with the union since then?

PAUL DEFELICE: There's been a whole host of meetings, I suppose on a weekly basis, to actually look at an appropriate and fair and transparent selection criteria, and out placement services and also the quantum of the final package for people to exit on.

ALISON CALDWELL: Now they've got security guards out there today to help people leave the plant. Is that an unusual situation?

PAUL DEFELICE: It is an unusual situation because I don't think in my history this has transpired. It's always been purely voluntary so it's been a pretty sort of amicable departure between the parties. So I don't know how people are going to take it when they get told that they're no longer required so I presume that's why the security guards are there.

ALISON CALDWELL: Do you know how they're working out who's going and who's not?

PAUL DEFELICE: Look it'll be based on skills, obviously, it'll be based on a whole host of other things - probably absenteeism will be one of them. So they are the main criteria, I suppose.

ALISON CALDWELL: Absenteeism meaning people who haven't been turning up for work?

PAUL DEFELICE: Excess to their entitled quota.

ALISON CALDWELL: Is that is for the time being at least? I mean, this number was expected but…

PAUL DEFELICE: It's not anticipated for the foreseeable future there's going to be any more because there's actually been a small increase in volume, I think approximately 3,900 - three thousand nine hundred - over the next three or four months. So should be right for three or four months.

ALISON CALDWELL: A spokeswoman for Toyota says the union requested the extra security to quote "make sure everything goes smoothly".

She says Toyota believes the redundancy packages, negotiated with Fair Work Australia, are generous.

Included in the 350 job losses are 84 voluntary redundancies.