Historic Wage Hike Demands in Japan

Historic Wage Hike Demands in Japan

During the annual spring "shunto" wage negotiations, senior labor union officials at Nippon Steel Corp. engaged in discussions with management representatives. This bargaining session aimed to address the rising inflation stemming from surging commodity prices.

Major automobile manufacturers' labor unions have presented their demands for substantial pay increases during the ongoing wage hike negotiations. On February 14th, union representatives submitted their requests to the major Japanese firms. Honda Motor Co. unions requested a monthly base pay increase of 13,500 yen, the highest in 31 years. This increase exceeds 3% of the average wage.

The labor unions of Toyota Motor Corp. have also demanded a base pay increase, similar to their request last year. While the specific amount is yet to be disclosed, they have indicated that it is the highest since 1999. The unions have presented demands for various pay hikes based on job type and rank, with a maximum monthly wage increase of 28,440 yen.

Nissan Motor Co. unions have requested a monthly wage boost of 18,000 yen, the highest since the current wage system was introduced in 2005. Unions at steel giants Nippon Steel Corp. and JFE Steel Corp. have also submitted their requests, seeking a monthly base pay increase of 30,000 yen, the highest in 50 years. Major heavy industries companies, including Mitsubishi Heavy Industries Ltd., have also demanded a monthly base pay increase of 18,000 yen. Electronics giants' labor unions are expected to submit their requests on February 15th. Companies typically provide their responses to the labor unions in mid-March.