London Daily

Focus on the big picture.
Saturday, Aug 30, 2025

Toyota and Honda announce biggest pay rises in decades

Toyota and Honda announce biggest pay rises in decades

Japanese motor industry giants Toyota and Honda say they have agreed to give their workers in the country the biggest pay rises in decades.
They are the latest firms in the world's third largest economy to increase wages as prices jump.

Official figures published last month showed Japan's rate of inflation was at its highest level in over 40 years.

That has put pressure on businesses and authorities to help people as their spending power shrinks.

Each year Japanese firms typically hold pay talks with unions for weeks before announcing their decisions around the middle of March.

The car makers have not said why this year's announcements were made earlier than usual.

On Wednesday, Toyota said it will meet union demands for pay and bonuses, with wages increasing by the most in 20 years.

Toyota's incoming president Koji Sato said that he hoped the move would have a positive impact across Japan's motor industry and "lead to frank discussions between labour and management at each company."

The company declined to provide further details when approached by the BBC.

Meanwhile, rival car maker Honda told the BBC that it had "fully answered" union requests for wage increases and bonuses.

The company said it will raise salaries by 5%, marking the biggest increase since 1990 and above Japan's rate of inflation.

A Honda spokesperson said the extra money will largely be distributed to younger employees as starting salaries are boosted.

"Despite the severe business environment, management has a strong desire to create an environment in which all employees can... push forward with their work with a sense of urgency," the spokesperson added.

Earlier this year, Japan's prime minister Fumio Kishida called on firms to raise wages to help people struggling with rising prices.

In January, the owner of fashion chain Uniqlo, Fast Retailing, said it would raise the pay of staff in its home country by up to 40%.

The company said the new pay policy would apply to full-time employees at its headquarters and company stores in Japan from the beginning of March.

For decades both prices and wage growth in Japan had been stagnant.

In recent months inflation around the world jumped as countries eased pandemic restrictions and the war in Ukraine pushed up energy prices.

In December, Japan's core consumer prices rose by 4% from a year earlier, double the central bank's target level and the highest rate in 41 years.
Newsletter

Related Articles

0:00
0:00
Close
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
Federal Reserve Independence Questioned Amid Trump’s Push to Reshape Central Bank
British Politics Faces Tumultuous Autumn After Summer of Rebellions and Rising Farage Momentum
US Appeals Court Rules Against Most Trump-Era Tariffs
UK Sought Broad Access to Apple Users’ Data, Court Filing Reveals
UK Bank Shares Dive Over Potential Tax on Sector
Germany’s Auto Industry Sheds 51,500 Jobs in First Half of 2025 Amid Deepening Crisis
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Starmer Should Back Away from ECHR, Says Jack Straw
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
Chinese AI Chipmaker Cambricon Posts Record Profit as Beijing Pushes Pivot from Nvidia
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Welcome to The Definition of Insanity: Germany Edition
Just a reminder, this is Michael Jackson's daughter, Paris.
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
×