MANY major Japanese companies, including Toyota Motor Corp, on Wednesday fully met their labor unions’ demands for wage hikes in annual negotiations, despite the expected increase in costs from higher crude oil prices.
Unions, however, at smaller companies could struggle to win similar wage hikes. Such firms tend to find it harder to pass on higher costs to customers, especially with the rise in oil and other material prices caused by the crisis in the Middle East.
Seen as a trendsetter at the annual “shunto” wage talks, Toyota, the world’s largest carmaker by volume, fully met its labour union’s pay hike and bonus payment demands for the sixth consecutive year.
The automaker is proposing pay increases of up to 21,580 yen ($135) per month while accepting its union’s request for an annual bonus equivalent to 7.3 months’ pay, down 0.3 month from last year’s record-high payment.
Honda Motor Co, which expects its first fullyear net loss in the year ending 31 March since its listing nearly 70 years ago, accepted an 18,500 yen pay hike request, while Suzuki Motor Corp. offered a pay increase of 20,500 yen, exceeding its union’s demand.
Kyodo
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