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Toyota freezes pay and considers shorter week for UK staff

LONDON (Reuters) - Toyota Motor Corp is freezing pay and management bonuses at its UK car-making operations in 2009, the company said yesterday, as carmakers grapple with a sharp downturn in global demand.

The Japanese auto maker said Toyota Manufacturing UK would also introduce a voluntary severance programme for staff at its two British plants, one near Derby in central England and the other in Deeside in north Wales.

It said it was considering introducing a shorter working week for less pay or temporarily suspending staff, although it had not made a decision and was continuing talks with trade unions.

A Toyota spokesman said the company had agreed to voluntary redundancies in response to a request from union officials, but said it would still need other cost-cutting measures.

"All our staff have been made aware of the need to reduce labour costs in addition to offering voluntary release," he said.

Toyota, which makes its Avensis and Auris models at Burnaston near Derby and produces engines at Deeside, saw its production volumes fall by 20 percent in 2008 against the previous year due to lower demand.

The company, which employs 3,870 people at Burnaston, previously announced plans to halt UK production for four weeks this year in response to the downturn.