Japan's Largest Union To Seek 5% Pay Hike

Japan's largest labor union has decided to demand a pay hike of at least 5 percent in annual wage negotiations next spring, strengthening its stance to cope with persistent inflation, as reported by Mainichi Japan.

The group had called for a pay hike of "around 5%" for 2023. I Photo: Kyodo

In its basic policy for the 2024 "shunto" negotiations, the Japanese Trade Union Confederation, also known as Rengo, stated that it will seek a pay hike of "5% or more," including a base-pay rise of 3% or more.

The group had called for a pay hike of "around 5%" for 2023. According to the union, in this spring's wage talks, workers secured an average raise of 3.58%, exceeding 3 percent for the first time in 29 years, as reported by Kyodo News.

Tomoko Yoshino, head of Rengo, mentioned during a press conference that the latest target is the "minimum threshold," encouraging trade unions at companies with relatively good performances to aim higher.

However, she also noted that unions at smaller firms may encounter difficulty in demanding larger pay raises, as they may be grappling with the challenges posed by the current tough business environment, including rising raw material costs.

Rengo also stated that it will seek a minimum hourly wage of 1,200 yen ($8) or higher, which is an increase of 50 yen from the 2023 negotiations. This is part of their efforts to reduce the wage disparity between regular and nonregular workers.

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