Toyota Offering Early Retirement to Workers at Kentucky Plant
Toyota Motor Corporation is offering retirement incentives to 2,000 Kentucky employees in an effort to prevent a mass-exodus next year at the automaker’s Georgetown plant. The Wall Street Journal reports the effort by Toyota would require eligible workers to leave at dates specified by the company, rather than when the employees would otherwise become eligible for retirement.
While costing the automaker a lot of extra money up front, Toyota hopes the buyout will help in the long run by replacing veteran workers who make around $26 an hour with replacements who will start at $16 an hour.
The Scott County facility has been producing Toyota vehicles for nearly 25 years now, and workers there currently build the Camry sedan, Venza wagon, and Avalon large sedan.
The 6,000-7,000 employees at the complex aren’t unionized, but can get full medical benefits and receive pension and 401-K distributions after working 25 years.