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Japan automakers offer smaller 2016 wage hikes
[TOKYO] Toyota Motor Corp on Wednesday said it would raise base monthly salaries of its workers by 1,500 yen (S$18.25) for the coming year, less than a 4,000 yen hike delivered last year, while other automakers also offered smaller hikes.
Modest demands for salary hikes following the largest increases seen in years in 2015 are seen slowing wage growth which is central to government efforts to stimulate the economy by stoking demand and stamping out deflation.
During annual wage negotiations, unions at Japan's major automakers requested monthly base wages increases of 3,000 yen or more. Nissan Motor Co agreed to a 3,000 yen increase, while Honda Motor Co said it would raise wages by 1,100 yen.
Toyota's latest rise marks the third straight year that the world's largest automaker has lifted its base wage, but it was less than half of last year's hike, its biggest in more than a decade. The automaker is seen as a bellwether for annual spring wage negotiations.
Last month, Toyota's union said that slowing inflation and an uncertain economic outlook were behind its decision to demand a smaller wage hike this year.