First pay rise for Toyota in 5 years
Japan’s weak yen has translated into record-profits for Toyota, the country's biggest company. Now employees will reap the benefits, and get a pay raise for the first time since 2008.
Toyota, along with Honda and Toshiba, will pass on the profits to workers with a salary bump, as of April 1, company heads told unions on Wednesday. The company estimates workers will get an average 2.9 percent raise.
A Toyota Motor Worker’s Union member will earn on average an extra $26 (2,700 yen) per month in base pay, Bloomberg reported, citing Senior Managing Officer Naoki Miyazaki, who spoke with reporters today.
The Toyota union represents over 50,000 employees, and they will also receive higher average bonuses.
High profits are driven by ‘Abenomics’, the Japanese premier’s set of measures to stoke the economy and spur growth after decades of decline, with a commitment to keep the yen weak.
High profits are driven by ‘Abenomics’, the Japanese premier’s set of measures to stoke the economy and spur growth after decades of decline, with a commitment to keep the yen weak.
Japan-based exporters like Toyota, Honda, and Panasonic have benefited greatly from profits spurred by the country's weak currency. Many have left prices abroad unchanged and seen sales climb due to advantageous foreign exchange rates.
Favorable market conditions for Japanese exports has translated into record profits, especially for companies like Toyota, which by the end of March is forecasting a 1.9 trillion yen profit, Bloomberg reported.
The Toyota Camry, one of the best selling cars in America, is priced at $22,500. The Corolla, also a top-10 best seller, goes for $16,500. Offering free bells and whistles- like air conditioning and other add-ons usually cost extra.
