Toyota Motor’s labour union on Tuesday decided not to demand a pay-scale increase during this spring’s annual spring wage talks, Kyodo News reported, citing union sources.
The union, representing 63,000 workers, will give up demanding such a raise for the first time in five years.
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Union leaders reached the decision because the automaker was expecting a net loss in fiscal 2009 for the second consecutive year, they said.
During the talks, the union will prioritise securing a monthly wage hike that is usually granted under the automaker’s seniority-based wage increase system, they said.
Union leaders will also propose demanding that the management pay annual bonuses equivalent to five months’ wages plus JPY100,000. The union made the same demand last year and the company agreed.
The leaders will put the proposals to its members on Friday to obtain endorsement prior to the start of spring bargaining, they said.
During last year’s spring wage talks, the union demanded that management grant a hike of an average JPY4,000 in the company’s pay scale for monthly wages. The management rejected it on the grounds that the global economic crisis had dealt a heavy blow to the company’s earnings performance.
