Major Japanese manufacturers like Toyota Motor Corp, Honda Motor Co offer reduced bonuses for FY 2012

TOKYO: Major Japanese manufacturers offered reduced bonuses in negotiations today for fiscal 2012 from next month, citing a deterioration in the business environment in the wake of the March 2011 earthquake and the yen's historic strength.

Toyota Motor Corp and Honda Motor Co fully accepted their unions' bonus requests that were lower than actual levels for the previous year. An average annual bonus totals 1.78 million yen equivalent to five months' wages plus 30,000 yen for Toyota and five months' wages for Honda.

Nissan Motor Co came up with a bonus offer at 1.96 million yen equivalent to 5.3 months wages, lower than a union request and the year-before level.

Among major electrical machinery makers, Hitachi Ltd and Mitsubishi Electric Corp offered bonuses at 5.28 months wages and 5.67 months, respectively, both lower than in the previous year.

Most major Japanese manufacturers pledged to maintain seniority-based annual pay hikes, including Panasonic Corp, Toshiba Corp, Mitsubishi Electric, Fujitsu Ltd and Nippon Steel Corp as well as major automakers.

But Sharp Corp, anticipating a huge net loss for fiscal 2011, plans to propose a freeze on the automatic pay hike for the first time in three years.