Toyota set to agree on ¥1,500 per month pay-scale hike

JIJI

Toyota Motor Corp. and its labor union are expected to settle on a pay-scale hike of ¥1,500 per month in this year’s shunto spring wage negotiations — half the level demanded by the union side, sources said Tuesday.

Still, Toyota management is expected to fully meet the union’s request for annual bonuses equivalent to 7.1 months’ salary, the sources said.

The leading Japanese automaker is considered a trendsetter in the shunto negotiations.

Rivals, including Nissan Motor Co., are also set to make final adjustments in response to their unions’ ¥3,000 pay-scale hike requests.

Major domestic firms are scheduled to give their responses to the labor side Wednesday.

Hitachi Ltd. and other electronics companies are also expected to offer a hike of ¥1,500 per month, half the amount sought by the union side.

Meanwhile, large steel makers are expected to offer a pay hike of ¥2,500 per month for fiscal 2016-2017, up from a ¥2,000 hike granted for fiscal 2014-2015. Negotiations in the steel industry basically cover two years.

Large firms have increased base salaries for the second straight year at the request of Prime Minister Shinzo Abe’s administration.

However, Toyota, Hitachi and other key companies have remained cautious about offering large increases in this year’s pay scale negotiations as their fixed costs ballooned after to hikes over the past two years.

The strengthening yen, volatile stock market and increasing uncertainties over the Chinese and other economies have also weighed heavily in their thinking.