Catherwood LibraryILR School

For the first time in five years the Federation of All Toyota Workers? Union will seek higher base salaries, a move that could set the benchmark for other large Japanese employee groups. Some see the union?s plan as a step out of almost two decades of deflation, which would be the effect predicted by the Prime Minister?s theories. The Prime Minister's, Shinzo Abe, fiscal and economic policies, dubbed ?Abenomics?, aim to create an upward spiral of wages and consumption. In the recent past, many Japanese companies have boosted bonuses, but have stayed away from committing to the higher fixed costs that wage increases bring. Comments by the company?s president, Akio Toyoda, show that the union?s movement is not totally counter to management?s plan moving forward.