Toyota factory workers get a $200 million payout

Toyota workers will walk away with an average of $80,000 each when the factory closes in 2017, as part of a redundancy package agreed to Thursday that will cost the car-maker more than $200 million.

The 2500 employees on the Altona assembly line and engine factory will receive four weeks' pay for every year of service (capped at 90 weeks or 22.5 years) and a further week's pay as a "loyalty" bonus for each year of service, which is uncapped.

The agreement is in addition to any long service leave or annual leave accrued, which will push the total payout to close to $100,000 for many workers.

The longest serving staff, who've worked there for more than 22 years, will pocket close to $120,000 before tax when the Camry factory shuts its doors in December 2017.

The average length of service for Toyota workers is 15 years and the average minimum wage is between $55,000 and $58,000 per annum, not including overtime and other bonuses.

The redundancy payments are calculated on the base wage.

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The national secretary of the vehicles division of the Australian Manufacturing Workers' Union, Dave Smith, said the result was a mixed blessing for Toyota employees.

"The workers got a redundancy that they're happy with but they certainly didn't get the outcome they wanted," said Mr Smith.

"I met with workers this week and 95 per cent of them would rather give up their redundancy if it meant they could keep their jobs."

Mr Smith said workers were concerned about what they would do next, even though about 90 per cent voted in favour of the redundancy package.

"The government makes out that they will get a better job, but that's nonsense," said Mr Smith. It's going to be difficult for so many of them to find work."

Toyota is establishing job centres on site and has stopped the production line once a fortnight to keep workers informed.

"We've tried to have the most open communication process we've ever had as a company," Toyota Australia President Dave Buttner told News Corp Australia last week.

"When there's uncertainty you can put out all the pieces of paper in the world … but people need to hear from a human being."

Mr Buttner said 15 per cent of the workforce is over 55 years of age and may use the redundancy payout as a chance to take early retirement.

About 20 per cent of workers are aged under 33, but the majority (65 per cent) are in the 34 to 54 age bracket. "They're still dealing with mortgages and raising kids, so for them, finding another job is critical," said Mr Buttner.

"To do that we have to treat everyone as an individual, we have to understand the phase of their career and the phase of the life that they're at and we will sit with every employee and develop an individual development plan."

Toyota is in the process of establishing language translation services and resume writing services for all workers, as well as appointing career advisers.

Meanwhile, it appears the future of Toyota's 600 or so white-collar office workers is also under review and it is turning into a Sydney versus Melbourne battle.

Toyota Australia's head office is in Port Melbourne has 326 staff while the sales and marketing office in Caringbah, a seaside suburb south of Sydney, has 309 employees.

Mr Buttner would not be drawn on which office would close, or if both would remain open. But he said a decision would be made by the end of this year to give workers at both locations ample notice.