Labor efforts have been robust across the global automotive industry in the past several months, and recent reports show that Japanese auto giant Toyota is facing demands from its union for the largest annual bonus yet for workers.
The labor union for Toyota Motors is expected to demand the largest annual bonus on record in the financial year running through March, worth a record of 7.6 months of pay compared to the previous high of 7.2 (via Reuters). The news comes after automakers such as Tesla, Hyundai, Honda and Toyota have all raised wages in certain markets, following a successful strike from the largest auto union in the U.S. and ongoing labor efforts in other countries.
Other companies have also announced plans to increase their wages beyond what they offered last year, a year during which most Japanese automakers offered their largest pay increases in 30 years—said to make up for labor shortages and pressure from the increasing cost of living.
The union will reach a formal decision on the matter by the end of February, ahead of Japan’s spring wage talks, which end in mid-March. The wage talks are considered by the Bank of Japan to be an important part of reaching sustainable wage growth and reducing inflation.
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