Toyota Motor Corp agreed to the union’s demand to increase employees’ salaries in Japan against the backdrop of accelerating inflation in the country.
The union, which unites 68,000 employees of Toyota, said that the increase in wages would be the highest in 20 years.
Toyota said on Wednesday that it fully accepted the union’s demand for increases in base pay and seniority payments but did not disclose the amount of the increase. According to the Financial Times newspaper, the company agreed to an agreement with the union on the first day of negotiations, although in the past, it took several weeks.
Another major Japanese automaker Honda Motor Co. – announced on Wednesday a 5% increase in wages, including the largest increase in base salaries in nearly 30 years.
In January of this year, the largest Asian clothing retailer Fast Retailing, which owns the Uniqlo brand, announced a 40% increase in wages for employees in Japan.
Earlier, Japanese Prime Minister Fumio Kishida called on local companies to raise salaries for staff.
Inflation in Japan accelerated to 4% in annual terms in December, the highest since January 1991.
