Toyota union to seek smaller pay increase in 2020 compared to last year

Toyota Motor’s labor union prepares to seek an average pay increase of 10,100 yen ($91.98) per month in wage negotiations this year, public broadcaster NHK reported on Thursday. The demand for a pay increase is 600 yen less than the increase granted last year.

The smaller request by the corporate bellwether could be a setback for the economy, as firms hesitate to increase wages out of fear of committing to higher costs.

Toyota last year offered a pay increase of 10,700 yen on average, which was down 1,000 yen from the earlier year.

Annual wage talks in March between management and unions – declared by major firms in sectors such as cars and electronics – set the tone for full-time employees’ wages throughout the nation, which have implications for consumer spending and inflation.