Union says it is 'vital to improve the wage trend'
After offering a 30-year-high average pay hike this year, employers across Japan are being encouraged anew to further raise pay in a bid to improve the wage trend, according to reports. Rengo, Japan's largest trade union confederation, called employers to action last week after reviewing the results of the annual spring wage talks, Reuters reported.
"There are some industries that did not see substantial wage hikes and real wages remain under pressure from price increases," Rengo President Tomoko Yoshino said as quoted by the news outlet.
"It is vital to improve the wage trend and we must keep up such efforts in our 2024 offensive."
According to the union, it is imperative for real wages to rise to ensure the stable growth of the economy. Rengo is set to launch in October debates on the proposed pay rises for the coming year, which will be laid out by year-end.
Wage talks
This year's spring wage talks, also known as shunto, delivered an average pay hike of 3.58%, the biggest in about 30 years.
UA Zensen, Japan's largest union, sealed a 5.28% salary hike ahead of the wage talks deadline.
The hike came after Prime Minister Fumio Kishida encouraged business groups early this year to hike wages amid rising costs of living. He also vowed to introduce reforms to create an environment that will support sustainable pay rises.
In Japan, several employers have begun offering bigger pay hikes to their employees this year. This includes, Fast Retailing, Oriental Land, Sumco, and Aeon.
