Labor-Management Relations

Joint Declaration of Labor and Management-Signed Declaration

Joint Declaration of Labor and Management

The automotive industry has become a symbol of industrial power in Western countries and the focus of respective domestic industries. It is now a barometer of industrial and technological standards. The automotive industry has also become a key industry in Japan, in association with the advancement of our industrial structure. Its rise or fall now translates directly into stronger or weaker economic competitiveness, and its success as a mainstay of Japanese industry has led to it gaining immense popular support. However, many challenges still await us. Passenger car trade liberalization is fast approaching, and we will face intense competition in international markets in the near future. Moreover, since last year the economy has been in a period of adjustment and we are now at a point where we must reaffirm our determination to succeed.

Since its founding, Toyota has continually strived to entrench the success of cars produced in Japan and, as a long-established principle, has at all times committed itself to serving the broader society. In doing so, at present we already meet international standards in performance, quality, and price for trucks and special-purpose vehicles, and have gained entry into markets around the world. Our rapidly growing exports stand as evidence that we can compete with Western countries.

Feeling a sense of self-confidence and conviction at such spirit and outstanding achievements since our founding, we are prepared to bravely overcome the liberalization of the passenger car trade and actively utilize this trial to achieve great success in the international market.

In such momentous times, we, Toyota Motor Company and the Toyota Motor Workers' Union, with the importance of our social mission and duty assigned to us as a Japanese automotive industry corporation and top manufacturer deeply impressed in our minds, and standing on our proud history and tradition, in order to convey our intention to work together to bravely overcome this difficult period, declare as follows.

1.We will contribute to the development of the national economy through the prosperity of the automotive industry.

Recognizing the importance of the automotive industry's mission and its place in the national economy as one of Japan's key industries, labor and management will cooperate and direct our best efforts towards this goal. In particular, conscious of the public nature of our enterprise, we will devote ourselves to the service of society, our industry and the public in Japan.

2.The relationship between labor and management shall be based on mutual trust and respect.

With integrity and honesty as our motto, we will foster a healthier and fairer labor-management relationship based on the mutual understanding and trust we have built up during our passage through many changes in the past, and will strive for peace and stability in our relationship by respecting our mutual rights and obligations.

3.We will endeavor to maintain and enhance the company's prosperity and labor conditions through the improvement of productivity.

To do this, managers and workers alike must understand each other's positions and, standing on common ground, work to increase productivity and maximize the benefits of that productivity. Furthermore, we must seek to maintain and improve job stability and working conditions, and cultivate the driving force to make significant advances. The company will maintain and improve working conditions based on the understanding that the source of its success lies in people. In addition, based on the awareness that greater productivity is necessary, the union will support the company's prosperity by actively cooperating with company policies.

Based on the above three key points, we will:

  1. (1) Improve quality performance
  2. (2) Reduce costs
  3. (3) Establish volume production systems

We hereby swear to make joint efforts, with labor and management working hand-in-hand, further recognizing the public mission of the automotive industry, in order to overcome the imminent market liberalization with valid, appropriate countermeasures. We will contribute to the vigorous development of Japan's industry and national economy in order to obtain the honor of not just Japan's Toyota but also the world's Toyota.

February 24, 1962

Fukio Nakagawa, President, Toyota Motor Co., Ltd.
Kazuo Kato, President, Toyota Motor Workers' Union Toyota Branch

Labor and Management Resolutions for the 21st Century

From our many shared experiences of hardship in the tumultuous years after the World War II, we, labor and management of Toyota, learned that building a fair and healthy relationship based on mutual understanding and trust is of the utmost importance.

The philosophy of 'endeavor[ing] to maintain and enhance the company's prosperity and labor conditions through the improvement of productivity' is a proud heritage, a product of the unceasing efforts and experience of our predecessors. Their intentions are powerfully articulated in the Joint Declaration of Labor and Management signed in 1962.

Both the company and the union have made continuous efforts to practice this philosophy and, as a result, have been able to elevate Toyota into one of the greatest corporations in the world, while enriching the lives of all those who work there.

Nevertheless, with the 21st century just over the horizon, the changes in the environment surrounding Toyota present greater challenges than ever before.

The maturation of industrialized economies and the growth of emerging economies have led to more intense international competition and consequent concern about the hollowing out of domestic industries. In addition to this, dealing with global environmental and energy issues, a rapidly aging population, and the development of a highly information-based society means that not only Toyota but also the Japanese automotive industry and the global economy are facing a structural turning point.

To continue on the path to prosperity in this environment, Japan must build a solid foundation as the world's best manufacturing center while integrating itself with the global economy and the international community. In this regard, the responsibility that rests on Japan's automotive industry as a key industry, and on Toyota in particular, is immense.

With our social mission deeply impressed in our minds and a firm conviction that the company's success leads to the happiness of its workers, we, labor and management must build a company filled with the vitality and creativity to achieve new growth. We will do so by striving to

Make fresh advances as a global company in the international community,
Establish a corporate footing in Japan that will lead to prosperity for labor and managers by raising productivity to a globally competitive level, and by strengthening the technological development capabilities and cultivating and passing on the skills to support monozukuri (conscientious manufacturing), and
Make the Japanese economy and society fair and prosperous.

With such an important mission, the company has come to a point where it must carry out structural reform as a business enterprise to create a 'new foundation'. Concurrently, the union has reached a new starting point at the time of an important milestone, its 50th anniversary.

Backed by Toyota’s proud history and tradition cultivated through the tireless efforts of our predecessors, we hereby resolve to do the following.


As a global company, we will endeavor for the progress of the world economy, and at the same time contribute to international society.

To make the 21st century a truly prosperous time for society and for Toyota, we will strive to act in harmony with individuals, society, the global environment, and the world economy and, together with the many people to whom we are connected, we, labor and management, will work together to seek to achieve new growth.


The relationship between labor and management shall be based upon mutual trust and respect.

As the foundation for fair and healthy labor-management relations, we will carry out our mutual obligations and respect each other's rights, and will continue to promote the spirit of mutual trust between labor and management.


In order to create a company environment in which workers can fully utilize their potential and additional value can be obtained, we, labor and management, will endeavor to faithfully perform the roles entrusted to us, while standing on common ground.

Based on the understanding that the source of its prosperity lies in people, the company will strive to become a place where workers can actively exercise their creativity, and will do its best to maintain and improve the working conditions and employment stability that provide the foundation for employees' lives.
Based on the awareness that maintaining and strengthening company foundations is essential to realizing a truly prosperous life for workers, the union will, taking an international perspective, endeavor to support the company's global competitiveness through the high value added by workers, and will actively cooperate with company policies.


We will contribute to the realization of a truly affluent society and life for working people, taking into consideration the future of Japan as a whole.

To realize not only success for Toyota's labor and management but also prosperous lives for all workers in Japan, we will exercise the leadership and determination to open up new opportunities for Japan, in all areas of company and union activity.

We confirm the above resolutions and pledge to work together as a company and union to achieve those resolutions.

January 27, 1996

Hiroshi Okuda, President, Toyota Motor Corporation
Susumu Jinno, President, Toyota Motor Workers' Union