Toyota union seeks wage hike on par with 2024's decades-high raise
Commentary:
The Toyota Motor Corp. is usually the company with the most power in Japan and all other companies follow that Toyota does, especially related to wage increases.
So most likely Toyota is talking for all the other Japanese companies and wage increases in April.
The challenge is going to be the small and midsize companies which don't have the resources that the large companies have and might not be able to pay the same wages as the large companies.
Japan is in the middle of a labor shortage, which means Japanese workers have a choice in companies to choose from so most likely some or many small and midsize companies will not be able to meet the demands of the short labor market and lost out of some of the better talent in the market place.
The Bank of Japan can't do everything to help the Japanese economy so companies increasing wages is the way for the market place to help improve the Japanese economy.
Toyota most likely collaborated with other Japanese companies on what they needed and Toyota then signaled what other companies wanted in wage increases for April 2025.
But again, its quite possible some of the larger companies too might have challenges with wage increases, they risk losing qualified candidates if they can't match what other companies in their sectors are doing.
Back around the year 2,000 Toyota decided not to give wage increases which might have set in motion the two decades period of no wage increases or very low wage increases until last year.
Most likely there is a new group of managers at Toyota which sees the need to pay wage increases for the good of the company not to mention they need to keep wages at a competitive level to attract the best and brightest in Japan.
Of course, again, Toyota has the resources to pay the high wages increases but maybe Nissan, which is having financial challenges nowt might not be able to match Toyota wage increase.
Nissan and Honda just ended its negotiations to merge both companies as it looked like Honda had the upper hand in the negotiations which Nissan didn't like so they ended the meetings.
The 18,000 wage increase might be good enough for those in Nissan's union but what about the wage or salary for those jus starting out in the company. Will it be enough to attract talented workers to Nissan.
Honda is in much better financial shape that Nissan so they afford to pay a little more than what Nissan is offering.
It seems like most of the large Japanese companies are offering about the same amount with some a little more and some a little less depending on the sector.
Once again, Japan is in the middle of a labor shortage that might not be eased anytime soon, as maybe Japan immigration is not willing to allow a lot of foreign workers into Japan to meet the labor shortage.
For example, if Japan would utilize its existing resources correctly such as using more women in the labor force and or allow more women students in the technical and engineering areas at universities it might help significantly with the labor shortage in Japan.
And then Japan should eliminate its mandatory retirement age of 60 or 65 and let all who are able and willing to work continue to work and that too could significantly reduce labor shortage in Japan.
Most likely many of the large companies are going to increase wages by at least 5 percent or more but the challenge is with small and midsize companies that don't have the same resources and the large companies and as a result might not be able to match the large company wage increases which means they might not be able to attract the best and brightest in Japan.
At the same its been suggested that up to 70 percent of Japanese workers don't work for the large companies in Japan but small and midsize companies which means they might not get near the 5 plus wage increase that large companies are planning on doing.
So it means maybe 70 percent of the Japanese workforce will have wage increases less than inflation of less that inflation that increases every month.
Have a nice day!
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.