Japan’s Carmakers Bend to Government Pressure for Higher Wages

Japan's carmakers have yielded to pressure from Prime Minister Shinzo Abe to hike wages by agreeing to the biggest increases in more than a decade, The New York Times reports.

Toyota will increase base pay for its hourly workers 4,000 yen ($33) per month. The company is considered a benchmark both within and outside Japan's auto industry. Nissan and Honda agreed to boosted hourly salaries by 5,000 yen and 3,400 yen, respectively.

Abe's policies have weakened the yen and dramatically boosted profits for Japan's multinational companies. Now he is putting strong pressure on those businesses to help revive the country's sluggish economy by raising wages. The Times notes that average household incomes in Japan have barely changed in 20 years.