Toyota Motor Corporation has accepted union demands for the largest wage hike in two decades. According to reports, the wage hike comes as part of a new labor agreement between Toyota and its unions.
The agreement includes a 5.5% wage increase for the current fiscal year, which is the highest increase in two decades. In addition, Toyota has agreed to a one-time bonus payment of ¥5,000 ($46) per employee. The bonus will be paid out in two installments, with the first one due in June.
The agreement also includes a number of other benefits for employees, including a reduction in overtime hours, improved job security and increased vacation days.
The agreement is a major victory for Toyota’s unions, which have been pushing for higher wages for some time. The wage hike is expected to benefit thousands of Toyota employees, and could set a precedent for other major companies in Japan.