Japanese motor industry giants Toyota and Honda have agreed to give their workers in the country the biggest ‘pay increment’ in decades.
In an announcement made on 23rd, February, 2023, Toyota said it will meet union demands for pay and bonus with wages increasing by the most in 20years.
“I hope the move will have a positive impact across Japan’s motor industry and lead to frank discussions between laborers and management at each company”, Koji Sato-incoming president for Toyota.
On the other hand, rival car maker Honda said it will raise salaries by 5% marking the biggest increase since 1990 and above Japan’s rate of inflation.
“The extra money will largely be distributed to younger employees as starting salaries are boosted“, said Honda spokesperson.
Each year, Japanese firms hold pay talks with unions for weeks before announcing their decisions in mid March.
Official figures published last month showed Japan’s rate of inflation at its highest level in over 40 years putting pressure on businesses and authorities to help people whose spending power has ‘shrinked’.
“Despite the severe business environment, management has a strong desire to create an environment in which all employees can push forward their work with a sense of urgency“, said the spokesperson for Honda.
Honda and Toyota are the latest firms in the World’s largest economy to increase wages as prices of commodities skyrocket.
