Japanese automaker Toyota Motor Corp. TM has agreed to provide the largest wage hike to employees in 20 years.
What Happened: After the first round of negotiations, Toyota agreed to give the largest wage hikes in two decades according to its union, stated a report in Bloomberg.
See Also: Best Technology Stocks Right Now
The company conceded to all union demands and agreed to increase pay, both base pay and bonuses, marking the third consecutive year that it has concurred to all union demands.
Bonuses this year will equal 6.7 months’ salary, added the Bloomberg report. However, the company has not provided a breakdown of the percentage increase in pay for workers under different categories, it added.
Toyota told Benzinga in an email that the hike was only for members of its Japan union, but did not disclose the quantum of the raise.
"We are not discussing wages for a single year or for [the] individual company in mind, but will discuss how to improve the competitiveness and sustainable growth of the automotive industry and Toyota," a spokesperson said.
"We hope that the discussion will lead to a virtuous circle of the economy and eliminate the uncertainty of the future of the workers."
The announcement comes amidst news of layoffs across U.S. tech companies, including big players such as Amazon.com AMZN, Meta Platforms Inc. META, and Twitter among others.
Read Next: Toyota Could Mark Its US EV Production Debut By 2025 Summer
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
