Pay Hikes Average 1.9 Pct in 2020 "Shunto" in Japan

Economy

Tokyo, July 6 (Jiji Press)--Monthly pay increases achieved during this year’s “shunto” labor-management talks in Japan averaged 1.90 pct, or 5,506 yen, per employee, the Japanese Trade Union Confederation, or Rengo, said Monday.

The combined average increase in base wages and regular pay fell 0.17 percentage point, or 491 yen, from the 2019 shunto, reflecting economic uncertainties amid the new coronavirus crisis.

The growth was the slowest since the government of Prime Minister Shinzo Abe began urging companies to raise wages in 2014.

In this year’s shunto, Toyota Motor Corp. <7203>, a pacesetter in shunto talks, decided to forgo a pay-scale increase.

The average wage growth among large companies dropped 0.20 point to 1.92 pct, or 5,817 yen, while that among small companies, with less than 300 unionized employees, declined 0.13 point to 1.81 pct, or 4,464 yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press