© Reuters. FILE PHOTO: The Toyota RAV4 Hybrid logo is seen during the first press day of the Paris auto show, in Paris, France, October 2, 2018. REUTERS/Benoit Tessier/File Photo
TOKYO (Reuters) – Toyota Motor (NYSE:) did not respond to the trade union’s wage demands in the second round of pay talks held on Wednesday, Kyodo news reported.
For the past two years the world’s biggest automaker had accepted the union’s demands in full on the first meeting, which has long served as the pace-setter for Japan’s spring labour-management wage offensive called “shunto”.
Toyota last week said it would continue negotiations with the union after the first round of talks.
Instead of reaching an agreement on wages and bonuses, the company and union deepened their debate over workplace issues on Wednesday, Kyodo said.
In contrast, Honda (NYSE:) Motor, Japan’s second-largest automaker, last week responded in full to union demands for a record rise in base pay and bonus payments.
Toyota’s third labour-management meeting is scheduled for March 6, before a formal offer for 2024 pay hikes on March 13 along with other blue-chip Japanese companies.
Economists project hikes of about 3.9% on average from big firms, exceeding a 3.58% pay rise deal struck in 2023 that was the highest in three decades
This year’s labour talks are being closely watched by the Bank of Japan, which sees sustainable wage and price hikes as a prerequisite to normalising its ultra-loose monetary policy and ending negative interest rates.
