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Toyota makes an unprecedented profit and announces higher wages

Published: 2024-11-21 Author: mysheen
Last Updated: 2024/11/21, Toyota, which made an unprecedented profit, yesterday announced an increase in base pay for the first time since 2008. Toyota announced that the average monthly basic salary of union members will be increased by 2700 yen ($26). Toyota will also pay an average dividend of 2.44 million yen, equivalent to 6.

Toyota makes an unprecedented profit and announces higher wages

丰田获利空前 宣布调高工资

Toyota, which made an unprecedented profit, yesterday announced an increase in base pay for the first time since 2008.

Toyota announced that the average monthly basic salary of union members will be increased by 2700 yen ($26). Toyota will also pay an average dividend of 2.44 million yen, equivalent to 6.8 months' salary, the highest in six years.

Although the depreciation of the yen led Toyota to forecast an unprecedented profit of 1.9 trillion yen for the current fiscal year, the pay adjustment was lower than that required by the union. Japan's imminent increase in sales tax in April will pose a challenge to domestic demand. Japanese Prime Minister Shinzo Abe has called on companies to raise wages.

Takuji Okubo, chief economic adviser of Japan Macro Advisors, said in a telephone interview before Toyota announced the pay adjustment:

"if the Japanese economy can continue to grow for another 12 months, we will see more wage increases." The Toyota Motor Union, which represents more than 50, 000 employees, is demanding an average increase in base salary of 4, 000 yen and an annual dividend equivalent to 6. 8 yen, or about 2.44 million yen. The proposal also includes an average salary adjustment of 7300 yen based on seniority or promotion.

Toyota's Daihatsu Motor and Suzuki Motor Corp. Have told their unions that they will not raise basic salaries in Japan this year.

 
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