On Wednesday, Kyodo news reported that Toyota Motor, during the second round of pay talks, did not respond to the trade union’s wage demands.
For the past two years, the world’s largest automaker has fully accepted the union’s demands at the first meeting. This practice has long served as the benchmark for Japan’s spring labor-management wage offensive, known as ‘shunto.’
Toyota announced last week that it would continue negotiations with the union following the initial round of talks.
On Wednesday, Kyodo reported that instead of reaching an agreement on wages and bonuses, the company and union deepened their dispute over workplace issues.
In contrast, Japan’s second-largest automaker, Honda Motor, fully addressed union demands for a record increase in base pay and bonuses last week. The company actively responded to meet the requested changes.
On March 6, Toyota has scheduled its third labor-management meeting. Subsequently, on March 13, a formal offer of 2024 pay increases will be presented, aligning with other blue-chip Japanese companies.
Economists, in active projection, anticipate average hikes of around 3.9% from major firms. This surpasses the 3.58% pay raise deal struck in 2023, marking the highest increase in three decades.
The Bank of Japan closely monitors this year’s labor talks. It views sustainable wage and price increases as a necessary condition for normalizing its ultra-loose monetary policy and ending negative interest rates.
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