Toyota Motor Corp, the world's biggest automaker, will accept the demand for a higher wage and bonus payments in full, according to two sources familiar with the matter. As one of Japan's biggest employers, Toyota has long served as a bellwether of the spring labor talks in full swing at major companies.
Japan Steps Up Calls for Businesses to Raise Pay
The government is seeking inflation-beating wage hikes to ease the burden on consumers, and many companies are expected to conclude the labor talks swiftly. The base salary increase being sought was the highest in the past 20 years, according to the union federation representing 357,000 Toyota group workers. However, the size of the rise has yet to be detailed.
Agreement Reached After First Round of Negotiations
According to sources, a deal was reached after the first round of negotiations between the company and the union. The union had also sought one-off bonus payments worth 6.7 months of wages.
Toyota Remains Tight-Lipped
A Toyota spokesperson told Reuters that they were aware of the conclusion of the labor-management talks but could not provide information on the content of the negotiations. The All Toyota Workers' Union is set to hold a media briefing later today.
Prime Minister Kishida Urges Business Leaders to Accelerate Wage Increases
The expected pay agreement comes as Prime Minister Fumio Kishida has stepped up calls on business leaders to accelerate wage increases, warning of a return to stagflation if pay rises fall short of the rapid price increase. Kishida said that by promoting structural wage increases, consumption and domestic demand would be boosted.
Other Companies Follow Suit
Fast Retailing Co Ltd, which owns Uniqlo, said last month that it would boost pay by up to 40%, fuelling expectations that big manufacturers would offer more during the annual wage talks with unions this spring. Video game maker Nintendo Co Ltd said earlier this month that it planned to lift workers' base pay by 10%, despite trimming its full-year profit forecast.