Japanese companies agreed to raise wages by an average 5.10 percent in this year's spring wage talks, offering a more than 5 percent increase for the first time in 33 years amid salary growth failing to keep pace with inflation, the country's largest labor union said Wednesday.
The Japanese Trade Union Confederation, also known as Rengo, said its final tally of the results of pay negotiations from over 5,000 member unions found the average monthly wage hike stood at 15,281 yen. The labor union had demanded an increase of 5 percent or more.
The figures compare with an average pay rise of 3.58 percent, or 10,560 yen, agreed in last year's negotiations. The number topped 3 percent for the first time in 29 years then.
This year's results come as Prime Minister Fumio Kishida has repeatedly called on corporate management for pay rises that beat inflation.
The latest government data showed Japan's real wages fell for the 25th straight month in April, the longest since comparable data became available in 1991, with wage growth falling behind price increases.
Japan saw its core consumer prices rose 3.1 percent last year, the sharpest rise in 41 years.
Among major Japanese companies, offers by Toyota Motor Corp. and Hitachi Ltd. fully met their unions' demands while Nippon Steel Corp. agreed to pay more than it was asked for.
Small and medium-sized enterprises saw a 4.45 percent rise on average, or 11,358 yen, according to the final tally.
Leaders from Rengo and the Japan Business Federation, the country's biggest business lobby, had called on big corporations to allow smaller firms to pass increased costs onto them to achieve a positive cycle of wage hikes and price increases, a view also backed by Kishida.
© KYODO
10 Comments
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Asiaman7
For only the 16.5% of the nation’s employees who belong to unions while all workers are approaching a 26th straight month of real wage decline during which inflation exceeds wage growth.
spinningplates
In which fantasy realm do these ‘wage hikes’ exist?
I know when I ask for a raise I get told I can ‘take a hike.’
demazin
Don't small and medium enterprises make up like 70% of Japan's workforce?
So it's not really a 5% increase on average is it?
dagon
How about instead of calling on, urging Japan Inc. to raise wages and repeating meaningless terms like virtuous cycles of inflation and wage growth and New Capitalism Kishida actually uses his legislative and administrative powers to bring about results?
Mandate a higher minimum wage and if that is a bridge too far mandatory Cost of Living Allowances should be a given with the economic conditions of Japan today.
Make all of the subsidies, tax breaks, stimulus funds companies regularly receive contingent on passing on more business gains to labor.
But it is easier to just repeat the call with similar results every time.
WoodyLee
GREAT NEWS, and congrats Japan.
Keep it goin upwards so people can catch up with inflation.
DanteKH
So for every 100,000¥ worth of gross salary, you might receive an extra 5000¥ taxable...
In the past 4 years, the Japanese Yen went down from a value of 100 to 1$ to 161 to 1$,thsts more than 60% loss in value. Prices of everything, including food, living expenses, etc more than doubled, while the rest saw an increase of at least 20-30% on average.
So this meangless 5% "increase" is just a slap on the face of the Japanese workforce.
Japan is the only country in the world, to shy and weak to take any steps against the System, such as going into strikes, protests, demonstrations, gatherings against the Government, etc. If this would have happened in Europe, USA, etc, theat would have been mass protests and strikes against the callous Government making the life of Japanese people more and more difficult and hard.
Daniel Neagari
How other societies tries to solve a problem does not necesary mean that particular way is the only way nor the correct way....
But if you think that those societies are superior... well that is a different beast
Siju George
Whoever received a 5% Hike, humbly requests to press the "-" sign and those who do not receive a pay hike of 5% may press "+".
quercetum
Japan is in the top 5 of countries in the world for the highest tax rates.
DanteKH
On JapanTimes you get down voted hard or even temporary blocked, for criticizing the JP Government. I wonder how long this comment is going to last...