Toyota, Union Likely To Reach Deal On Pay Hike In Mid-March: Report

Author: Shivani Kumaresan | March 06, 2024 06:43am

Toyota Motor Corp (NYSE:TM) didn’t make an offer to meet union demands for pay increases amid ongoing wage negotiations.

The workers’ union seeks a 7.6-month bonus and undisclosed wage hike. The automaker, which boosted compensation significantly last year, plans to present an offer at the next meeting on March 13, according to a report from Bloomberg.

Given its central role in Japan’s vast auto manufacturing network, Toyota’s decisions hold significant weight. The outcome of these negotiations is closely watched, as it could indicate the trajectory of Japan’s wage-price cycle.

Also Read: Toyota Revs Up EV Game: Shifts Gears With Full Ownership Of PEVE For Expanded Battery Production

Prime Minister Fumio Kishida’s administration advocates for wage growth surpassing inflation, with Honda Motor Co Ltd (NYSE:HMC) and Mazda Motor Corp (OTC:MZDAY) already agreeing to wage increases, the report added.

These talks are part of Japan’s annual spring wage negotiations, with important implications for the country’s economy and monetary policy.

Also See: Toyota To Infuse $2.2B In Brazilian Automotive Sector: Report

Price Action: TM shares closed higher by 1.78% at $248.19 on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Posted In: HMC MZDAY TM