Japan Carmakers Cutting Off Pay to 32,000 North American Workers

  • Toyota cutting loose 5,000 variable staff to partner agencies
  • Honda, Nissan to temporarily stop compensating plant staffers
Toyota employees work on Highlander SUVs at the company’s plant in Princeton, Indiana.
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Japan’s three biggest automakers are poised to add almost 32,000 people to the unprecedented ranks of North American workers seeking unemployment benefits.

While Toyota Motor Corp. isn’t furloughing any of its direct employees in the U.S., Canada or Mexico, the carmaker said Wednesday that it will no longer pay the roughly 5,000 people that temp agencies employ to help staff its idled plants in the region. The company will continue to provide benefits for the time being.