Toyota labor-management negotiations enters its third round in Japan

Toyota Motor Corporation held its third labor-management negotiations in spring 2020 at its head office in Toyota City, Aichi Prefecture.

Labor and management exchanged views on issues facing Toyota, such as strengthening the competitiveness of the entire group, including parts companies and alliance partners. Labor and management have bridged the gap by deepening wage-focused discussions.

In the labor-management negotiations last year, President Akio Toyoda pointed out the lack of awareness of crisis within the company.

However, unions cannot be optimistic about wage increases. Toyota’s Executive vice President Mitsuru Kawai said, “A further increase in the wage base could lead to a loss of competitiveness.”

The third round of negotiations between labor and management was held on a limited scale following the spread of coronavirus. The number of participants was 38, about 70 less than last time. The participants not only included company and union members, but also non-union managers.

The union demands a salary increase of 10,100 Yen per month on average for all union members and an annual lump sum of 6.5 months of the standard wage. The company has shown a positive attitude in the negotiations so far and will proceed with discussions.

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