Toyota agrees to increase base pay in Japan, first since 2008

Article by Christian A., on March 18, 2014

Toyota Motor Corp. has agreed to hike base wages in Japan it heads for record profits this fiscal year. According to Senior Managing Officer Naoki Miyazaki, the average Toyota Motor Workers’ Union member will earn JPY2,700 ($26) more in monthly base pay, representing an 0.8-percent rise over the average salary in 2013.

However, it is still below the JPY4,000 the union was asking for. The increase comes as Japanese companies are bracing for a sales tax increase that will take effect next month. Japanese Prime Minister Shinzo Abe has been pushing companies to increase workers’ pay to help end a decade-and-a-half of deflation.

“If the Japanese economy was more likely to continue to grow for another 12 months, we would see much more robust growth in wages,” Takuji Okubo, chief economist at Japan Macro Advisors told Bloomberg in a phone interview. Toyota said its employees will receive a 2.9-percent increase on average when the JPY7,300 average hike in pay that they receive based on seniority or promotions is included.

Toyota has granted a request from Toyota’s union -- representing over 50,000 workers -- for the average bonus to be increased to JPY2.44 million, which is equivalent to 6.8 months of salary and the most in six years.

Toyota is not the only carmaker hiking wages. For instance, Nissan Motor Co. has agreed to its union’s request to increase base wages by JPY3,500 and bonuses equivalent to 5.6 months of salary, spokesman Chris Keeffe told Bloomberg by phone. Honda Motor Co. also agreed to raise monthly base wages by JPY2,200. [source: Bloomberg]

Topics: toyota, japan

If you liked the article, share on:

Comments

Recommended

Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Fireball Performance Cars has been known to make the fastest sixth generation LT1 Camaros in the world. Once again it has managed to walk the talk as it hit a...
by - February 22, 2017
The North American unit of German premium carmaker BMW is recalling around 19,000 units of its BMW i3 electric vehicle because of the risk of fuel leak. You may ask,...
by - February 22, 2017
A publication by the U.S. Patent and Trademark Office revealed that Honda is still looking into the Project 2&4 Concept. Officially unveiled during the 2015 Frankfurt Motor Show, the Project...
by - February 22, 2017
Barely a month before its official debut, Hyundai gave everyone a taste of what’s to come with the 2017 Hyundai i30 Wagon. Despite what little was shown, it did not...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries