Toyota and Honda announce biggest pay rises in decades

Japanese motor industry giants Toyota and Honda say they have agreed to give their workers in the country the biggest pay rises in decades.

They are the latest firms in the world’s third largest economy to increase wages as prices jump.

Official figures published last month showed Japan’s rate of inflation was at its highest level in over 40 years. That has put pressure on businesses and authorities to help people as their spending power shrinks.

Each year Japanese firms typically hold pay talks with unions for weeks before announcing their decisions around the middle of March.

The car makers have not said why this year’s announcements were made earlier than usual.

(BBC)