Toyota union will seek pay hike

NAGOYA (Kyodo) Toyota Motor Corp.'s labor union is planning to demand an increase in members' basic monthly pay for the first time in four years in the next round of wage negotiations in the spring, industry sources said Wednesday.

The news comes on the heels of a policy paper released the previous day by the Japan Business Federation (Nippon Keidanren), the nation's most powerful business lobby, that calls for pay hikes in the negotiations.

The Toyota union is expected to demand a pay increase of between 1,000 yen and 2,000 yen per month.

The 58,000-member Toyota Motor Workers' Union held off on demands for higher wages during the previous three annual negotiations amid a deflationary economy and intensifying international competition. But with the economy on the upturn, higher vehicle sales have led to a sharp rise in production.

Nippon Keidanren said in its report that businesses should adopt a stance that will "enhance workers' morale."

The report was compiled at a time when financial burdens on households are rising amid growing corporate earnings. Income tax breaks, for example, are due to be phased out starting in January.

The report represents a turnaround from Nippon Keidanren's stance of pushing for pay cuts during labor-management negotiations.