Toyota supplier asks staff to take a day’s leave on reduced pay as lockdown bites

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Toyota supplier asks staff to take a day’s leave on reduced pay as lockdown bites
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Toyoda Gosei, maker of air bags and brake hoses, asked this of its Japanese workers after production suspensions by Toyota

A major Toyota Motor Corp supplier has asked employees to take a day off with reduced pay this month, a spokesperson for the supplier, Toyoda Gosei, said on Wednesday, reflecting the effect of the chip shortage and Chinese lockdowns.

Toyoda Gosei is a major supplier to top shareholder Toyota and also supplies other carmakers. It employs some 6,500 people in Japan, not including contract and dispatch workers, according to the spokesperson. It also comes as sources told Reuters on Wednesday the Bank of Japan will consider downgrading its assessment on factory output at this month’s policy meeting due to the supply disruptions from China’s strict Covid-19 lockdowns.

Japan’s factories posted a sharp fall in output in April, according to the latest data, highlighting the fragile nature of the recovery in the world’s third largest economy.

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