Toyota union plans to forgo wage hike demand

January 19 (Reuters) A union representing workers at Toyota Motor Corp (7203.T) plans not to push for wage hikes in annual negotiations, the Nikkei business daily reported.

The Daily said the automaker's consolidated earnings are improving, but amid uncertain business conditions, the Toyota Motor Workers' Union will hold off on asking for increments for a second consecutive year.

Such plans by the union, which has a strong influence on labor-management negotiations nationwide, could spur others to follow suit, the Nikkei reported.

In the proposal, to be presented to members on Jan 28, the union plans to focus on ensuring that workers continue to benefit from seniority-based raises, while also pressing management to meet bonus requests in full, according to the Nikkei.

The surging yen has eaten into parent-only earnings at Toyota, the Nikkei report said.

The demise of a government subsidy program for consumer purchases of environment-friendly cars is also expected to slow operations at the automaker's domestic plants, according to the report.

Labor and management are expected to negotiate for wages and work assignment issues with such factors in mind, the Nikkei report said.

Last year, the union had sought annual bonuses averaging 1.84 million yen but had to accept 1.8 million yen, according to the Nikkei.