• Kyodo

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The Confederation of Japan Automobile Workers’ Unions said Wednesday it will give up seeking a unified basic monthly wage hike in spring wage talks and demand only regular hikes in the seniority-based pay scale.

The decision, the first such move for the union, is in accordance with the stances of large member unions, including those at Toyota Motor Corp. and Honda Motor Co.

“As the business results of the auto industry have remained favorable, we should call for a monthly average pay-scale increase in order to improve our wage levels, which are lower than other industries,” said Yuji Kato, the confederation chairman.

But he said the confederation decided not to do so after taking business performance gaps among automakers into consideration.

A pay-scale hike raises the basic wage table itself, and the increase would apply to all workers regardless of age. Such an increase is different from regular pay raises under seniority-based wage scales.

Kato also criticized the decision of Toyota Motor’s union, which is asking that the company share profits with employees brought about by good performance via a form of new payment category, rather than through a pay-scale hike.

The confederation made the decision after the Japan Council of Metalworkers’ Unions decided last month to give up seeking a unified basic monthly wage hike, marking the second straight year it has done so, to give priority to ensuring job security.

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