Toyota to Coax Creativity with Guaranteed Overtime Pay

Toyota Motor Corp. proposes to coax more creativity from senior skilled employees with flexible work schedules and an extra 170,000 yen ($1,500) per month-—the equivalent to 45 hours of overtime, The Nikkei reports.

The Nikkei says the program would pay workers the higher wage based on actual overtime hours worked rather than the current scheme, which sets a fixed amount for overtime. Employees who opt for no overtime would be required to appear in their work office only two hours per week.

About 7,800 senior technical and administrative workers, or about half of all non-management staff in Japan, will be eligible, according to the newspaper. That’s nearly five times the number of employees currently eligible for discretionary work schedules. Participants would be required to take a minimum vacation of at least five consecutive days once per year.

Toyota, which has presented the scheme to its labor union, hopes to launch the program in December. Under the company’s existing labor agreement, a standard work weeks consists of five eight-hour days.

The Nikkei says workers currently are allowed to put in no more than 45 hours of overtime per month or 360 hours per year. The new scheme would expand those periods to 80 hours of overtime per month and a maximum of 540 hours per year.