TOKYO (Reuters) — Toyota Motor Corp on Tuesday said it was close to agreeing to a monthly base wage increase of 1,500 yen ($13.22) for the coming year, which would be half of the 3,000 yen rise demanded by its labour unions.
"The details are being finalised regarding a provisional agreement to meet the union's original request for bonus and to offer a wage increase of 1,500 yen per month for the average union member," a Toyota spokesman said.
The company added that it was also planning to meet in full the unions' demand for a one-off bonus worth 7.1 months of wages.
The world's largest automaker said it will announce its final agreement with unions on Wednesday.
An increase of 1,500 yen would be far less than the 4,000 yen monthly increase agreed to a year ago.
The Nikkei reported last week that Toyota was hoping to agree on a deal centered on a 2,000-yen hike in base wages.
Toyota is seen as a bellwether for wage talks that take place across the country's companies in spring.
Modest pay awards would hamper Prime Minister Shinzo Abe's efforts to stoke demand and defeat deflation. The annual "shunto" wage talks are seen as crucial for the ultimate success of Abe's aim to generate virtuous growth led by higher incomes and business investment.
© Copyright Canadian HR Reporter, Thomson Reuters Canada Limited. All rights reserved.