Toyota Unsure Of How to Meet Union Demands For Huge Raises

Toyota Motor Corp., the world’s largest automaker, faces a “big gap” in negotiations with its workers’ union in Japan, the labor group’s chairman said Tuesday.

“Our negotiation with the company is like a parallel line,” Mitsuyuki Tsuruoka, the head of the Toyota Motor Workers’ Union, said at an event near the company’s headquarters in Toyota City, Japan. “We have had two rounds of negotiations so far, but there remains a big gap between us.”

The comments reflect potential challenges to Prime Minister Shinzo Abe’s push for companies to raise wages. Economic policies under Abe have weakened the yen and boosted earnings from exports and overseas sales, bolstering Toyota’s forecast that profit in the fiscal year ending this month will climb to a record 1.9 trillion yen ($18.7 billion).

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gkearns56 - 3/5/2014 12:53:01 PM

+2 Boost

WOW!! Where have we heard this story before. Unions demands big raises for putting screws, bolts, plastic and glass in. No wonder nobody wants the UAW in their plant anymore.

xjug1987a - 3/5/2014 1:34:15 PM

-1 Boost

These profits are, yes for strong sales, but really from currency manipulation. The Govt is doing so to keep its mfg engines moving forward. Without the manipulation the profits would be much smaller, and thus the companies would have less money to stay competitive. Thats it in a nut shell. Do the "employees" deserve raises.... well Japan has been in a constant state of recession, 5 in the last 15 years with little income increases. The likelihood is they'll get something, but not what they're seeking. No way and I'd also expect to see more production moving out of Japan to lower cost regions. In a global economy and an insanely competitive industry, lowering costs are the only way to stay in the game.