TOKYO — 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.
Both companies temporarily furloughed their employees last month, too, as Nissan, their major customer, began cutting back on production.
Furloughed workers maintain their employment contracts but have their salaries partially reduced for the days they do not work. Japan’s Labor 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.
Automakers usually inform suppliers of their medium- to long-term production plans a year or six months in advance. As for more up-to-date plans, they give about a month’s notice. Suppliers use this information to procure materials and hire temporary workers.
Most parts makers have not experienced any production disruptions of their own. But as final assemblers revise their production plans and order fewer parts than initially expected, they are resorting to furloughs.