Toyota has confirmed that workers at its UK factories will suffer a ten per cent cut in hours and pay for one year as the car industry shudders through the global downturn.

The Japanese carmaker said the cuts would come into effect from April 1st, affecting 4,500 staff at Burnaston in Derby and Deeside in Flintshire.

“Following extensive consultation with our employee representatives, and with input from all employees, it has been agreed that the best way to secure long-term employment is to temporarily reduce working hours and base pay by ten per cent,” a statement said.

“This work share arrangement will take effect from April 1st and will be in place for one year, during this time we will continue to monitor the market and company situation closely. We believe the measures we have announced give us a greater opportunity to maintain employment through this difficult period.”

The news came ahead of car bosses meeting with business minister Ian Pearson to discuss the government’s £2.3 billion bailout of the industry.

Unions have welcomed the decision from Toyota, which has already announced that no managers will receive a bonus in 2009.

“Any decision to cut wages and working time is never taken lightly but the agreement we have reached with Toyota will ensure none of our members’ benefits are eroded and that these skilled workers will remain in place and at work ready for when the upturn comes,” said Peter Tsouvallaris, Unite representative at Toyota.