Toyota Motor announced its largest pay increase for factory workers in 25 years, marking a significant move that could influence the central bank’s policy shift next week.
The agreement was part of annual wage negotiations involving major Japanese companies including Panasonic, Nippon Steel, and Nissan.
This year’s negotiations, a hallmark of Japanese labor-management relations, gain attention as substantial pay raises might prompt the central bank to reconsider its long-standing negative interest rate policy.
Toyota agreed to monthly pay increases of up to 28,440 yen ($193) along with record bonus payments, without specifying a percentage rise.
The move reflects a broader momentum for wage hikes across Japan, according to Yoshimasa Hayashi, Japan’s chief cabinet secretary.
Economists view significant wage hikes as crucial for the Bank of Japan (BOJ) to achieve its goals of sustainable wage growth and stable prices, potentially leading to the end of negative interest rates in place since 2016. The B OJ’s upcoming policy meeting on March 18-19 is closely