Japan: Toyota and unions still debate wages image

According to a top labor official, the unions and Toyota, along with its parts makers and dealers are still on a rift when it comes to the asked wage increases.

Masamoto Azuma, chairman of the Federation of All Toyota Workers’ Unions, which is a gathering of 312 unions, representing around 329,000 members says some of the officials from the companies are reluctant to agree to the increase because it would also increase company costs.

“The management’s thinking is very distant from our requests, the rift has remained,” Azuma said yesterday in Toyota City, Japan. “This kind of management is just too selfish. They only speak from their own standpoint.”

“Toyota’s decision is a sign for judging whether Prime Minister Abe’s growth strategy will work or not,” said Takeshi Miyao, a Tokyo-based auto analyst at Carnorama Japan. “Toyota has concerns because the domestic market will probably slow down after the increase in the consumption tax, and uncertainties remain in a lot of overseas markets.”

In Toyota’s case, the largest automaker in the world – which forecasted rising profits for the whole 2014 – the union represents around 50,000 workers and asked for a net 4,000 yen average monthly increase and annual bonuses that would amount to around 6.8 months’ salary, or about 2.44 million yen.

Via Bloomberg