In an unexpected move, Toyota has reduced the value of the pensions promised to its team members by cutting the indexing of the benefits, despite record profits and the pension plan being very healthy.
It’s the kind of unilateral move the company could not make with a union in place. In a unionized workplace, any changes to compensation, including pensions, must be negotiated with your union. Your elected executive and bargaining team, drawn from your co-workers, would work with the experts at Unifor to negotiate the best deal for you.
That’s not what happens at Toyota. Without a union, the company can decide on its own that the pension promised to you when you were hired is now going to change, leaving us all to wonder what further cuts Toyota might decide to make between now and your retirement.
It’s not the first time we’ve seen this at Toyota. In fact, this move comes almost a year to the day after Toyota declared that all new hires would not be part of the pension plan, but would instead get a less secure defined contribution pension plan.
That’s two years in a row that Toyota has cut pension benefits.
What will next year bring?
If you want to have a say, sign a Unifor card and gain a voice.