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Asia
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Economy

Toyota increases wages by supporting Shinzo Abe

Region:
Asia
Category:
Economy
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This increase is expected to encourage other companies to follow the same path as a response to the call of Prime Minister Shinzo Abe to support his economic plan

In Japan, the automaker Toyota increased the wages of its workers after six years to help the country fight deflation as requested by the Government. The decision of Toyota, world leader in engine expects a record operating profit for the current fiscal year, could influence other Japanese companies when considering wage increases. Prime Minister Shinzo Abe, has made several appeals to companies to carry out a rise of wages to combat chronic deflation and boost the economy, Toyota was the first company to take a step in that direction.

The salary increase will be 2,700 yen, beyond the union had requested that reached 4,000 yen. Prime Minister Abe seeks to encourage consumption, cause a slight increase in prices to generate inflation, followed by confirmation of salary increases to be offset operational the consumption tax from April will happen from 5 to 8 percent.

According to the Government, it's a necessary measure to revitalize the country's finances. Toyota Motor recently announced that it posted a net profit of 1.52 billions yen (EUR 11.195 million) between April and December 2013, 135.4% more year thanks to the fall of the yen, strong sales and reducing costs.