Toyota management to accept union demand for annual pay hike | autos | Hindustan Times
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Toyota management to accept union demand for annual pay hike

autos Updated: Mar 11, 2010 12:26 IST
Toyota Motor Corp

Toyota Motor Corp.'s management plans to accept a demand from its workers' union at this spring's annual labor-management wage negotiations for the implementation of an annual pay hike, sources close to the matter said.

The move apparently reflects the management's view that it should respond to the union's demands to some extent so that employees and management can work together to regain consumer confidence in Toyota amid concern that the company's earnings could be affected by a series of global recalls.

The focus of negotiations will now shift to bonuses, which the union is demanding should be kept at the level agreed with the company's management last year, while the management has shown strong reservations.

Amid adverse business conditions, the Toyota labor union decided not to demand a pay-scale hike for the first time in five years.

Instead, the union decided to place priority on securing a monthly wage hike that is usually granted under the automaker's seniority-based periodic wage increase system.

As for bonuses, the union has demanded that the management pay annual bonuses equivalent to five months' wages plus 100,000 yen.

In a third round of negotiations Wednesday, Toyota President Akio Toyoda said, "Labor and management will make all-out efforts to secure" an annual pay hike, according to union members.