Workers at Japanese carmakers want higher pay

Article by Andrew Christian, on February 23, 2015

Workers at Japanese auto makers are asking for a bigger share of the companies’ projected JPY4 trillion ($33.6 billion) in annual profit, via a raise for the next fiscal year. The workers, represented by 11 unions, plans to demand a JPY6,000 ($50) monthly raise for the fiscal year starting April 1, according to the Confederation of Japan Automobile Workers’ Unions, which has around 766,000 members at parts suppliers, dealers and the carmakers.

Even Japanese Prime Minister Shinzo Abe has urged companies to increase wages to help the country sustain its ongoing recovery. While pay surged in 2014, it failed to boost spending due to a sales-tax increase, carmakers were able to earn more thanks to the weakening yen.

The JPY6,000 surge in in monthly base wages that the Toyota Motor Workers’ Union recently proposed was equal to a raise of around 1.7 percent for its 63,000 workers. Toyota is expected to answer the proposal on March 18.

“To judge whether the level of wage demands is enough to support a healthy economic cycle, we will have to look at the actual results,” according to confederation president Yasunobu Aihara.

Toyota Motors along expects to post a record profit of JPY2.13 trillion this fiscal year – which is more than the combined forecast of the country’s 10 other car and truck makers, as well as that of Yamaha Motor Co. (JPY1.9 trillion).

Record earnings are also expected from Fuji Heavy Industries Ltd., Mazda Motor Corp., Mitsubishi Motors Corp. and Suzuki Motor Corp. for the current fiscal year.

Topics: japan

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Bentley Motors has just released the specs of the new Bentayga Diesel. Obviously, we couldn’t wait to share it here since it’s the first ever diesel model to come out...
by - September 26, 2016
A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016
Earlier this year, Aston Martin wowed the world with a stunning concept car – the Vanquish Zagato. The concept made its first appearance in May during the Concorso d’Eleganza Villa...
by - September 7, 2016
Lamborghini has always been known to be the home to exotic supercars. The Italian automaker’s production facilities have hosted uniquely designed and powerful show-stopping supercars. It all started with the...
by - September 5, 2016