Toyota agreed with union to raise wages
2023.02.22 02:20
Toyota agreed with union to raise wages
By Kristina Sobol
Budrigannews.com – Two people familiar with the situation said on Wednesday that Toyota Motor Corp., the largest automaker in the world, would fully comply with a union demand for a raise in wages and bonus payments. This comes as calls for businesses in Japan to raise wages rise.
Toyota, one of Japan’s largest employers, has long been a harbinger of the spring labor negotiations, which are currently in full swing at major corporations. As the government seeks wage increases that are below inflation to ease consumer burdens, many are anticipated to conclude quickly.
The union federation representing 357,000 Toyota Group employees stated that the proposed base salary increase was the highest in 20 years, but it did not specify the magnitude of the increase.
According to the individuals, who were not permitted to speak publicly, the first round of negotiations resulted in the conclusion of the agreement.
The union had also requested one-time bonus payments totaling 6.7 months’ worth of wages, according to the Asahi newspaper, which first reported the agreement.
A Toyota spokesperson told Reuters, “We are aware that the labor-management talks have concluded, but we are unable to provide information on the content of the negotiations at this time.”
Later on Wednesday, the All Toyota Workers’ Union is scheduled to hold a briefing for the media.
The anticipated pay agreement comes as Prime Minister Fumio Kishida intensifies his calls for business leaders to accelerate wage increases, averting a return to stagflation in the event that pay increases fall short of the rapid rise in prices.
At a session of the lower house budget committee on Wednesday, Kishida stated, “We will promote efforts toward structural wage increases. This will boost consumption and expand domestic demand.”
Last month, Fast Retailing Co. Ltd., which owns Uniqlo, said it would increase pay by up to 40%. This raised hopes that big manufacturers would offer more during annual wage talks with unions this spring.
Manufacturer of video games Nintendo Co. Ltd. despite downgrading its full-year profit forecast, the company announced earlier this month that it would increase employee base pay by 10%.
