The leadership of the Federation of All Toyota Workers Unions plans to refrain from making a unified request for any pay-scale hike in annual wage talks next spring for the third straight year, sources close to the matter have said.

The plan comes as the yen’s appreciation drags down earnings of Toyota Motorand its group with the Japanese economy remaining in deflation, they told Kyodo News.

The federation of labour unions of all Toyota group companies will officially adopt the plan at its central committee meeting in January.

The plan by the largest labour union in the auto industry is expected to affect union policies in other industries for spring 2012 wage negotiations.