Japan’s largest labor organization to demand around 5% wage hike

NHK has learned that Japan’s largest labor organization plans to demand a pay rise of about 5% in annual wage talks which will begin early next year.

Sources say the Japanese Trade Union Confederation, or Rengo, has drawn up a draft basic plan for the negotiations. Rengo is an umbrella organization for trade unions with a total membership of around 7 million workers.

It says Japan’s economy has seen a slow recovery from the coronavirus pandemic and wage increases have not kept pace with rising prices, making life difficult for workers.

Rengo says companies should invest in people and raise wages. It calls for moving to an economy in which GDP and wages are steadily increasing.

The organization says it will demand a raise of around 5%, including a base salary increase of around 3%.

This will be Rengo’s biggest pay rise request since 2014.

Rengo stopped setting a concrete number for his salary increase request in 2002 amid Japan’s economic crisis. But it started to do so again in 2014, when wage growth momentum accelerated to pull the country out of deflation.

The wage bargaining plan is expected to be approved at Rengo’s central executive committee meeting on Thursday.

Aubrey L. Morgan