Tuesday, March 12, 2013
DJ: Honda Motor Meets Union's Full Demands For Higher Bonuses
TOKYO--Honda Motor Co. (7267) said Tuesday it had met its labor union's demands for higher bonuses in full, becoming the first of Japan's big three auto makers to come to an agreement with workers during the annual wage negotiations.
Honda said it will pay its workers a seasonal bonus equivalent to 5.9 months of wages, or about Y2.13 million ($22,000) in line with the union's demands, a jump from the five months doled out in the previous year.
Honda said the bonus was to recognize workers' efforts over the last year, as well as motivate them in the coming year as the competitive landscape remains stiff for Japan's third-biggest auto maker.
While the weakening yen in recent months has fueled optimism for the export-oriented auto makers, Honda has suffered from sluggish sales demand in Europe and China. It cut its full-year earnings outlook for a second time in January.
Japan's other major auto makers are due to give their responses to union demands Wednesday.