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Major Japanese companies to increase salaries

Staff writer |
In response to the request of Prime Minister Shinzo Abe's administration to increase wages to help end deflation, major Japanese firms have informed their labor unions of the decision to raise their employees' salaries.

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Among those who will take part in the increase are automotive firms Toyota Motor Corp. and Honda Motor Corp., along with electronic companies Panasonic Corp. and Hitachi Ltd.

While the companies mentioned were unable to meet all demands of their labor unions, the pay hike shows significant boost in their business revenues for the past six years. Toyota has decided to increase employees' wages by 2,700 yen (about US$26), while Honda has decided on an average of 2,200 yen. Panasonic and Hitachi have both agreed to increase pay by around 2,000 yen monthly.

Repeated calls by the government and successful spring labor talks made the increase possible. However, many companies still remain unable to hike their pay wages. Suzuki Motor Corp. and Daihatsu Motor Corp decided to do without the increase, as they continue to monitor the business environment, especially in emerging economies. Meanwhile, no increase as well for both Sharp Corp. and Pioneer Corp. employees, as their labor unions did not submit requests.

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