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Japan. Toyota. The biggest raises in 25 years at the automotive giant

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Toyota Motors has agreed to the demands of trade unions and will pay the largest raises for employees of its factories in 25 years, reports Reuters. Earlier, Panasonic and Nippon Steel also fully responded to the union's demands.

Toyota, Nippon Steel and Nissan were among the largest companies Japanwhich agreed to fully meet union demands for pay increases during annual wage negotiations ending Wednesday.

As Reuters notes, the talks, a hallmark of the typically collaborative relationship between Japanese company executives and workers, are being closely watched this year as the increases are expected to help the central bank pave the way for ending its long-standing negative policy. interest rates next week.

Pay raises at Toyota

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Toyota, the world's largest carmaker and traditionally the leader of the annual talks, said it agreed to demands for monthly raises of 28,440 yen (approx. PLN 750 at the exchange rate on March 13) and record bonuses. In line with its current practice, the company did not disclose the percentage scale of the salary increase.

– We see great dynamics in wage increases – Japanese government spokesman and Chief Cabinet Secretary Yoshimasa Hayashi told reporters. – It is important that the strong impulse of wage increases spreads to small and medium-sized companies – he added.

Prime Minister Fumio Kishida made ending years of modest wage growth a top priority to boost weak consumer spending. As Reuters notes, wage growth in Japan remains well below the average for the group of rich OECD countries.

The Bank of Japan is monitoring the situation

The Bank of Japan is also closely monitoring wage negotiations as they are an important element in deciding whether to end the negative interest rate phase that has been ongoing since 2016.

The central bank, which has kept ultra-low interest rates for years longer than other developed countries in an attempt to revive the economy, will hold its next interest rate meeting on March 18-19.

Kazuo Ueda, governor of the Bank of Japan, said that “the outcome of this year's wage negotiations is crucial” to the decision.

Main photo source: Shutterstock

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