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Toyota seen to favour pay hikes
Publication Date : 06-03-2014
Toyota Motor Corp. is considering offering a base pay increase in excess of 3,000 yen (US$29.32) during upcoming labour-management wage negotiations, company sources said Wednesday.
Japan's largest carmaker will also likely accept its worker’s demand for bonuses equivalent to 6.8 months’ wages annually, an average of 2.44 million yen ($24,000), according to the sources.
The focus of attention is whether Toyota will fully meet the demand of its labour force for a basic monthly pay hike of 4,000 yen. The company is seen as a bellwether in the annual spring wage increase negotiations between labor and management, according to analysts.
If Toyota agrees to a pay hike beyond institutionalised annual increases in salaries, it will be the first rise in the car manufacturer’s basic wage scale since 2008. The automaker’s anticipated wage increase will compare with a base pay hike of 1,000 yen from 2006 to 2008.
Meanwhile, Toyota is set to introduce a new retirement benefit system in April. The system is designed to deduct 2,750 yen per month from periodic wage hikes given to each employee, and set the money aside for retirement benefit payments. This means a reduction in take-home monthly salaries paid to Toyota employees.
The carmaker is considering taking some measures to make up for drops in wages due to the new system. This partly reflects its success in improving productivity as a result of streamlining efforts.
The automaker also bears in mind that its wage system is bound to affect the economy as a whole, according to the sources.