JAPAN: Toyota to meet workers' bonus demands
Toyota is expected to fully meet employees' demand for bonuses for this year for the fifth consecutive year, Dow Jones reported, citing the Kyodo news agency.
The report said the prospect emerged at this year's first wage negotiations where Toyota's labour union demanded bonuses worth five months' pay plus Y530,000 totaling Y2.35 million ($21,500) for a model worker, a decrease of Y20,000 from last year.
Toyota reportedly is expected to comply with the demand in full as the labour union came up with the bonus cut and no demand for a pay-scale increase despite the company's strong earnings, according to the report.
Dow Jones said the union calculates its demand for bonuses on the basis of Toyota's parent- only operating profit which is expected to fall in the business year to March 31 as a result of the yen's appreciation against the dollar.
With its group net profit expected to reach an all-time high of Y1 trillion in the year to March 31, Toyota intends to comply with the union's demand for annual wage increases averaging Y6,500 per month per worker, Kyodo reportedly said.
A pay-scale hike raises the basic wage table itself. The increase is applied to all workers regardless of age, which is different from the automatic annual pay raises based on seniority, the report noted.