Toyota Motor Corp.
, the world’s largest automaker, faces a “big gap” in negotiations with its workers’ union in Japan, the labor group’s chairman said Tuesday.
“Our negotiation with the company is like a parallel line,” Mitsuyuki Tsuruoka, the head of the Toyota Motor Workers’ Union, said at an event near the company’s headquarters in Toyota City, Japan. “We have had two rounds of negotiations so far, but there remains a big gap between us.”
The comments reflect potential challenges to Prime Minister Shinzo Abe’s push for companies to raise wages. Economic policies under Abe have weakened the yen and boosted earnings from exports and overseas sales, bolstering Toyota’s forecast that profit in the fiscal year ending this month will climb to a record 1.9 trillion yen ($18.7 billion).