Toyota to raise Japan salaries for first time since 2008


Toyota (TM) has agreed to raise base salaries for its Japanese workers for the first time in six years amid soaring profits at the company, with staff set to receive an average increase of 2.9%.

Other firms are also increasing wages, including Honda (HMC), Nissan (NSANF), Nippon Steel & Sumitomo Metal (NISTF), retailer Lawson and Daiwa Securities Group (DSEEY).

The pay increases signal how major companies are paying heed to the government's exhortations to lift wages as part of the battle against deflation.

Separately, Toyota has issued $1.75B of "green" bonds linked to auto loans that will be used to help finance vehicles that are powered by hybrid or alternative fuel.

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Comments (5)
  • Viper740
    , contributor
    Comments (466) | Send Message
     
    Correct me if I'm wrong, but what I get from this story is that these companies are raising salaries due to command directives from the government, more so than due to market conditions.

     

    Has Japan become the Soviet Union?
    12 Mar 2014, 03:05 AM Reply Like
  • mitrado
    , contributor
    Comments (2033) | Send Message
     
    It was a government's suggestion, not a directive.

     

    Is the government forbidden to use free speech now? Has Japan become the Soviet Union?
    12 Mar 2014, 06:33 AM Reply Like
  • severance26
    , contributor
    Comments (24) | Send Message
     
    Not at all. The companies are greedy and stupid though; record profits and they still don't raise wages even though it's directly destructive to the economy here. sometimes the japanese abide the status quo so much they forget how to live.
    1 Feb, 05:31 PM Reply Like
  • Treeman VIII
    , contributor
    Comments (2) | Send Message
     
    From 2010 statistics, 25.8% of the population is employed; very aged population. A 2.9% increase in salary is a good sign but, at best, only 1 in 4 citizens will see it. I wonder if this will inspire spending and increase the velocity of the Yen.
    12 Mar 2014, 01:32 PM Reply Like
  • severance26
    , contributor
    Comments (24) | Send Message
     
    That's a very interesting statistic. Rarely do I see people gauge employment to include elderly and children. Granted its an aging population, but that statistic is fraught with asterisks. See OECD website: In terms of employment, 72% of people aged 15 to 64 in Japan have a paid job, above the OECD employment average of 65%. Some 81% of men are in paid work, compared with 62% of women.

     

    Increase the velocity of the yen... stronger or weaker? It's recent strength has more to do with outside influences than NIRP or the economy...
    12 Mar, 11:25 PM Reply Like
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