Reuters reports that Nissan has said that it will agree to union requests to raise wages and bonus payments. Reuters said the move has been met with surprise in deflationary Japan, many in the face of rising unemployment and falling prices have forgone where pay rises.

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Nissan said it would raise the average base salary by 1,000 yen ($8.50) a month and increase annual bonus payments by around 112,000 yen to 2.018 million yen.

“The decision is based on our belief that the rise in salaries would be an effective way to motivate our employees,” Senior Vice President Kuniyuki Watanabe told a news conference according to Reuters.

Nissan is expected to post another set of strong financial results for the fiscal year to March 31.

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