Toyota has granted 68,000 unionised workers in Japan their highest pay rises in about two decades, giving a boost to Prime Minister Fumio Kishida’s campaign for wage increases to address rising living costs.
The move by Japan’s largest carmaker, a bellwether of its manufacturing sector, is expected to put pressure on other companies to follow suit in a country where wages have remained stagnant for most of the past 30 years.
After Toyota’s move, Honda also accepted its union demand in full to raise overall wages by about 5 per cent, including base pay and seniority-based pay.
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