Japan's annual spring wage negotiations seem to be going in favor of workers. Some of the country's biggest companies on Wednesday agreed to union demands for pay hikes.

Toyota Motor gave employees exactly what they requested for the fourth straight year.

The union of Japan's largest automaker asked for a top monthly pay increase of a little more than 28,000 yen, or about 190 dollars. Toyota also agreed to a record bonus payment of 7.6 months' salary.

Industry leader Nippon Steel went a step further to offer a monthly wage hike of nearly 240 dollars, or more than what its union wanted.

The company is in the midst of a bid to acquire global rival US Steel and said it needs the best talent to tackle challenges at home and abroad.

Electronics and technology giant Hitachi met its union's demand to raise monthly base pay by 13,000 yen, or roughly 90 dollars. That's the biggest hike since 1998.

Dai-ichi Life Research Institute Chief Economist Kumano Hideo projects average wage increases this year will be at the 4-percent level. That's larger than last year's, which was the highest in about 3 decades.

He said that many small and medium-sized companies have said they could lose customers if they raise prices of products or services. He added that such firms may now be able to increase prices because employees at large corporations will have more money to spend.

Kumano says the next crucial step is to see if smaller companies will have the courage to also raise wages, even if their businesses are struggling.