Toyota union is preparing to ask for benefits and higher wages

Toyota union is preparing to ask for benefits and higher wages

Bloomberg — The Toyota Motor Corp. (TM) will seek a 7.6-month pay bonus, an increase of nearly a full month’s pay, as it prepares for annual compensation talks with the manufacturer. Japanese car.

The negotiating group, which has yet to present demands for a moderate wage increase, said Monday it would the final decision on what to expect in terms of job categories and classifications at the council meeting on February 9before giving information to the company.

Manufacturers are likely to face tough demands from unions during the annual spring wage negotiations, due to rising prices over the past two years. The big question for the Japanese economy is whether there will be enough signs of sustained inflation and corresponding wage increases for the Bank of Japan to end its negative interest rate policy.

“The efforts and hard work of the members of the party to improve productivity in the past year is visible in numbers and is reflected in Toyota’s financial results“said Keisuke Kito, president of the central committee of the union. The cases also show rising consumer prices, he added.

The amount sought by the union would be a significant increase compared to last year, which was the largest increase in per capita wages since 1999.

The automotive industry, including parts dealers, distributors and maintenance companies, It employs about 5.5 million people in Japan. As a result, any wage increase by Toyota and other automakers will be seen as a solution to the entire manufacturing sector and the economy.

Earlier this month, Prime Minister Fumio Kishida and senior union leaders argued over a significant wage increase ahead of annual pay talks. Japan’s Federation of Trade Unions, known colloquially as Rengo, has set a target of a 5% wage increase, with at least 3% in terms of base salary.