Toyota to Skip Pay-Scale Hike amid Coronavirus Crisis
Tokyo, March 11 (Jiji Press)--Toyota Motor Corp. <7203> refused to grant a pay-scale increase in this year's wage negotiations with its labor side Wednesday, amid uncertainties related to the novel coronavirus.
The top Japanese automaker, regarded as a pacesetter in "shunto" spring labor-management talks, will skip a pay-scale hike for the first time in seven years.
The company instead offered to increase monthly wages by 8,600 yen, far lower than the 10,700 yen agreed last year and the 10,100 yen demanded by the labor side this year.
"Toyota should not keep increasing salaries that are already at high levels, given the severe industry competition ahead," President Akio Toyoda said.
At the climax of this year's shunto negotiations Wednesday, many other companies proposed smaller monthly wage increases than the previous year, reflecting growing fears over slowdowns of the Japanese and overseas economies due to the global spread of COVID-19.
[Copyright The Jiji Press, Ltd.]