Toyota raises wages in Japan by biggest amount in two decades
Step by country’s largest carmaker puts pressure on other companies as living costs rise
Toyota has granted 68,000 unionised workers in Japan their highest pay rises in about two decades, giving a boost to Prime Minister Fumio Kishida’s campaign for wage increases to address rising living costs.
The move by Japan’s largest carmaker, a bellwether of its manufacturing sector, is expected to put pressure on other companies to follow suit in a country where wages have remained stagnant for most of the past 30 years.
After Toyota’s move, Honda also accepted its union demand in full to raise overall wages by about 5 per cent, including base pay and seniority-based pay.