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Updated January 26th, 2024 at 16:39 IST

Toyota Motor union targets record 2024 bonuses in annual wage talks: Report

In 2023, Japanese companies implemented the highest pay hikes in three decades to address labour shortages and the impact of rising living costs.

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Union is expected to push for substantial monthly pay hikes during these negotiations. | Image:Toyota
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Toyota Motor Corp's labour union is reportedly set to seek its largest-ever annual bonus, demanding 7.6 months of pay—a notable increase from the previous high of 7.2 months. According to the Nikkei business daily, the ambitious demand is in light of Toyota's projected record consolidated operating profits of 4.5 trillion yen ($30.45 billion) for the financial year ending March 2024.

Given the positive financial outlook presented by Toyota, the union is also expected to push for substantial monthly pay hikes during these negotiations. The automaker's robust financial performance aligns with the broader trend in Japan, where several major firms have already announced plans to increase wages more than the previous year.

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In 2023, Japanese companies implemented the highest pay hikes in three decades to address labour shortages and the impact of rising living costs.

Comparing the bonus payments sought by Toyota's union this year to the previous year, the demand represents an increase from a bonus worth 6.7 months of pay. The union is anticipated to make a formal decision on these demands by the end of February.

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These discussions are part of the broader spring wage talks in Japan, set to conclude in mid-March. The Bank of Japan views these negotiations as crucial for achieving sustainable wage growth and inflation. The central bank has underlined that meeting both these conditions is essential for the country to exit its decade-long monetary stimulus programme and put an end to years of negative interest rates.

(With Reuters inputs)
 

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Published January 26th, 2024 at 16:39 IST

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