Thursday, March 13, 2008

Toyota Raised Wages by 1000 Yen in Japan

Toyota failed to meet the demand of Union wage in Japan. Wage union demanded increase by 1,500 yen in a high inflation situation Japan faced recently. Toyota said that they would be capable of increasing the wages by 1,000 yen per month. The prices of consumers rose by 0.8 percent in January in the country. Prime Minister Yasuo Fukuda also requested the companies to increase their wages so that the labor class people have enough purchasing ability.

Bloomberg reported:

``1,000 yen? That's a black joke. Is that going to buy you a new TV or a new DVD player? I don't think so,'' said Takehiro Sato, chief Japan economist at Morgan Stanley in Tokyo. ``The cost of living is obviously rising higher. That means real income is actually dropping.''

Japan's Prime Minister Fukuda on March 6 asked the Keidanren, Japan's biggest business lobby, to step up efforts to raise wages and stimulate consumer spending.

The current is not going to be a great year for the auto makers in the world as they are facing high price of gasoline and fuel in the international market. So, Toyota seems to go through a tough time this year. Now, let us see if the company can cope up with the situation well.