Toyota Labor Union Seeks Salary Increase as Profit Surges

Source: Bloomberg
http://www.bloomberg.com/news/2014-01-30/toyota-labor-union-seeks-salary-increase-as-profit-surges.html
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Toyota Motor Corp. (7203)’s labor union is seeking a raise in workers’ base salary for the first time in five years as analysts estimate Japan’s biggest manufacturer will post a record profit in the current fiscal year.

The workers will ask at the annual spring labor negotiations for a net 4,000 yen ($39) average increase in monthly wages and annual bonuses valued at 6.8 months’ salary, according to a statement from the union today.

The demand from the workers of the world’s biggest automaker comes after Japanese Prime Minister Shinzo Abe urged companies to raise wages faster than gains in the cost of living. The squeeze on consumers from higher prices risks undermining public support for Abe unless he can convince companies to boost wages to cushion the blow.

“It’s important to reduce concern about the future in order to expand consumption and to get the Japanese economy on a virtuous cycle,” the union said in the statement. “We will seek wage increases with that perspective.”
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As a reference point, Japan has a much higher union membership than the United States across almost all industries. Toyota employees are members of both the Toyota Union and one of the three extremely large national unions that protect workers across industries.