Toyota’s workers’ union demands a 7.6-month salary bonus, an increase of nearly an entire month’s pay, as it prepares for annual compensation negotiations with the Japanese automaker.
The bargaining group, which has yet to issue requests for average wage hikes, stated on Monday that it would make a final decision on what it expects based on job categories and ranks at a council meeting on February 9 before alerting the corporation.
Manufacturers will likely face severe requests from unions during annual pay talks in the spring, as prices have risen over the last two years. The Japanese economy’s fundamental concern is discontinuing its hostile interest rate policy. The sum proposed by the union will climb dramatically from last year, which saw the largest per capita salary boost since 1990.
The automotive sector in Japan employs around 5.5 million people, including parts suppliers, dealers, and maintenance organizations. As a result, any pay hikes by Toyota and other automakers will be interpreted as a signal for the rest of the manufacturing sector and economy.
Earlier this month, Prime Minister Fumio Kishida and top union leaders urged for more robust wage growth before the annual pay negotiations. The Japanese Trade Union Confederation has set a salary increase target of 5%, with a minimum of 3% base pay.
