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Japan Inc shares more of massive profits with workers

By Bloomberg | China Daily | Updated: 2015-03-19 07:27

Japan's biggest companies are on track to book a record 21.1 trillion yen ($174 billion) in profit as the fiscal year winds down this month. Their workers can expect a larger share of the bonanza.

Toyota Motor Corp management on Wednesday formally offered workers their biggest boost in monthly base wages and seniority pay since at least 1993, said Yasuyuki Takagi, a union spokesman. Nissan Motor Co and Honda Motor Co also said they will boost employee pay for the fiscal year beginning in April by more than a year earlier.

Raising employee incomes is critical to Prime Minister Shinzo Abe's efforts to revive Japan's economy and defeat deflation. While Nikkei 225 Stock Average company profits are projected to double to a record after the Bank of Japan implemented policies to weaken the yen, workers have seen little benefit. Wages adjusted for inflation declined for 19 consecutive months through January.

Japan Inc shares more of massive profits with workers

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