Toyota Tells Unions Worker Pay Should Be Based On Performance Rather Than Seniority

Hard to believe this is 2015 and they are just NOW getting around to this discussion.

^^^ +1!

Just as a datapoint, in medieval times, one's military rank in much of Europe was determined by one's class. If you were born of nobility, you were entitled to the senior ranks. In contrast, the Mongols, who were nomadic horsemen from Asia, determined one's military rank based solely on ability and performance. If you were a peasant horse groomer who showed savvy leadership skills and military prowess, you quickly gained rank that reflected that. When the "Mongol Hordes" invaded Europe, they were unstoppable, and the decimated the European knights and their armies.

The parallels can be drawn between concepts of birthright and entitlement (union mindset), versus the value one adds to their tribe, and their abilities (performance-based remuneration and rank).

@TheSteve - great point!

Hard to argue with the notion. But it's worth noting that measuring performance is always trick and takes time to get right. People are very good at figuring out how to game whatever system is put in place. Plus, what you measure is what you get, so you have to make sure you don't measure anything stupid or end up compromising things that are important.

The mentality was you always do your best every day and the company will reward you with lifetime employment.

Now more and more are not doing their best but still want more in return.

You must admit, they've had success with whatever union philosophy that has been in place over the last 3 decades. I also think we tend to have a bit of an over-generalization of the so-called union at Japanese companies. They work pretty close with the company and have cooperated on many matters and they have offered a lot of ideas on manufacturing line productivity/efficiency, inputs on components, etc.

This is true, but they build a majority of vehicles outside Japan and that mentality might not transfer in another land.