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Updated March 13th, 2024 at 10:33 IST

Toyota yields to union's demands, agrees to highest wage hike since 1999

According to Japan's largest trade union grouping, Rengo, workers at major firms have sought annual pay hikes exceeding 5.85% for first time in three decades.

Reported by: Business Desk
Toyota wage negotiations
Toyota wage negotiations | Image:Toyota
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Toyota Motor Corp wage hikes: Toyota Motor Corp has reportedly yielded to its union's demands for substantial pay increases, marking the most significant salary surge since 1999. As annual negotiations between unions and Japan's top corporations conclude, the move by Toyota sets a precedent for the nation's business landscape.

The Mainichi newspaper reported on Wednesday that Toyota, a global automotive leader, has committed to meeting worker demands, including monthly pay raises of up to 28,440 yen ($193) and record bonus payments.

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Similar actions have been taken by rival companies like Nissan Motor and steelmaker Nippon Steel, both of which have reportedly acceded to union demands for substantial wage increases.

Economists view these wage hikes as pivotal for signalling progress toward sustainable wage growth and price stability, potentially prompting a shift in Japan's economic policies.

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The Bank of Japan (BOJ) is anticipated to reassess its monetary policy, potentially ending years of negative interest rates, during its upcoming meeting on March 18-19.

According to Japan's largest trade union grouping, Rengo, workers at major firms have sought annual pay hikes exceeding 5.85 per cent, surpassing the 5 per cent mark for the first time in three decades. Analysts anticipate this year's wage increases to exceed 5 per cent, marking the most significant surge in over 30 years.

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(With Reuters inputs.)
 

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Published March 13th, 2024 at 08:10 IST

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