Toyota gives no answer at second round of wage talks

Tokyo — Toyota Motor did not respond to the trade union’s wage demands in the second round of pay talks held on February 28 2024, Kyodo news reports.

Since 2022, the world’s biggest automaker has accepted the union’s demands in full on the first meeting, which has long served as the pace-setter for Japan’s spring labour-management wage offensive called “shunto”.

On February 21, Toyota said it would continue negotiations with the union after the first round of talks.

Instead of reaching an agreement on wages and bonuses, the company and union deepened their debate over workplace issues on February 28, Kyodo said.

In contrast, Honda Motor, Japan’s second-largest automaker, on February 20 responded in full to union demands for a record rise in base pay and bonus payments.

Toyota’s third labour-management meeting is scheduled for March 6, before a formal offer for 2024 pay hikes on March 13 along with other blue-chip Japanese companies.

Economists project hikes of about 3.9% on average from big firms, exceeding a 3.58% pay rise deal struck in 2023 that was the highest in three decades

Labour talks in 2024 are being closely watched by the Bank of Japan, which sees sustainable wage and price hikes as a prerequisite to normalising its ultra-loose monetary policy and ending negative interest rates.

Reuters