
The spring “shunto” labor negotiations in Japan are currently at the forefront of discussions, particularly in light of the ongoing inflation. The main question this year revolves around the possibility of wage hikes in small and midsize companies to align with economic conditions. Rengo President Tomoko Yoshino stressed the importance of avoiding stagnation in the trend of wage increases and emphasized the need to establish a stable cycle of wages, the economy, and prices during the negotiations.
During a meeting in Tokyo, Keidanren Chairman Masakazu Tokura echoed the sentiment of stabilizing the momentum for wage increases that has been building over the past couple of years. The focus is on urging member companies to consider raising the base in salaries to drive structural wage increases and foster a thriving middle class. Keidanren's management and labor policy report highlighted a stronger call for base pay increases compared to previous years, aiming to address widening wage disparities between large and small to midsize companies.
Rengo has set a target for wage increases in the current shunto negotiations at 5 percent or more, in line with the previous year. Additionally, an extra 1 percent has been allocated for employees of small and midsize companies to address the growing wage gaps. Each labor union is expected to begin presenting their wage hike demands from mid-February, with major companies responding by mid-March. In Japan, this annual negotiation process sees labor unions making demands for wage raises and better working conditions from company management. Rengo plays a key role in creating a framework for the negotiations, with individual labor unions negotiating specific demands with respective companies.