Honda Motor has agreed to pay out the biggest one-time bonus to its employees... The Japanese multinational expects to report a third consecutive year of record earnings at the end of the March.

Honda Motor has agreed to pay out the biggest one-time bonus to its employees. The Japanese multinational expects to report a third consecutive year of record earnings at the end of the March (when its current business year comes to a close).


Honda, which is Japan's second-biggest car manufacturer, will pay a bonus equivalent to 6,55 months of wages, about 2,3 per cent more than last year, the company said this week.


The figure is smaller than the 6,6 months of average wages requested by Honda's dominant labour union, which represents about a third of the manufacturer's workers.


The union did not request an automatic increase in the monthly salaries last year.


"We hope the record level of bonus will help motivate our workers," Honda director Mikio Yoshinmi said in Tokyo yesterday.


Honda raised its annual group net income forecast last month to the equivalent of R29,95-billion from an earlier outlook of R29,76 billion and is expanding across Asia - growth in China and India also helped make up for a domestic sales decline and the effect of the yen's strength against the dollar.