Major automakers and electronics companies said Wednesday they will raise base wages and bonuses for a third consecutive year but the increases will be moderate this time because of global economic uncertainties.
Many companies are expected to log brisk earnings for the business year ending March 31. But managers appeared reluctant to raise pay in light of the yen's continuing rise against the dollar, climbing oil and other commodity prices, and unanswered questions on how the U.S. subprime mortgage loan crisis will affect the Japanese economy.
As the annual "shunto" spring wage talks peaked Wednesday, Toyota Motor Corp., the nation's top automaker, offered a basic monthly pay hike of ¥1,000 — the same as last year. Its union had sought a ¥1,500 raise.