Toyota Motor Corp., the world’s largest automaker, said it would accept the union’s demand for a wage hike and bonus payments, as Japan continues calls for corporations to raise wages.
According to an internal post on the Toyota website, new president Koji Sato stated the decision to accept the union’s demands in full set a bar for compensation discussions that he wanted the rest of the automotive sector to follow.
The union group that represents 357,000 workers in the Toyota company said the rise in base pay it had sought was the largest in two decades.
According to the Asahi newspaper, the union requested additional one-time payments equal to 6.7 months’ wages.
The wage increase agreement came as Prime Minister Fumio Kishida urged business leaders to speed up wage increases, warning of a return to stagflation if pay raises slower than price increases.