Japan: Toyota union to seek wage increase image

As the analysts estimate profit rose to a record this fiscal year, the Japanese company’s labor union for the first time in five years will also ask for a workers’ base salary bump – as Toyota also dwells on the global sales top spot.

According to a statement issued by the union yesterday, there will be demands for a net 4,000 yen ($39) average increase in monthly wages and annual bonuses valued at 6.8 months’ salary, which workers intend to propose at the annual spring labor negotiations.

“It’s important to reduce concern about the future in order to expand consumption and to get the Japanese economy on a virtuous cycle,” the union said in the statement. “We will seek wage increases with that perspective.”

Toyota’s president, Akio Toyoda also said at an event in Tokyo, before the labor union announcement that its company would be open to discussions regarding wage increases.

“I would expect we can negotiate the issue with representatives from the labor union to come to a decision that benefits both sides and is conducive to the company’s sustainable growth,” he said.

According to the Japan Automobile Workers’ Union, last year Toyota also agreed to a 2013 average bonus of about 2.05 million yen, the biggest in five years – which came as a union proposal. According to an average compiled from 22 analysts’ estimates the Japanese automaker’s net income could increase as much as 94 % to 1.86 trillion yen in the year ending March.

Via Bloomberg