Rengo to Demand 5 Pct Pay Hike for 2023

Economy Work

Tokyo, Oct. 18 (Jiji Press)--The Japanese Trade Union Confederation, or Rengo, is considering demanding a pay hike of around 5 pct in next year's "shunto" spring labor-management wage talks, sources familiar with the matter said Tuesday.

The target for pay-scale and regular salary growth will be lifted to a 28-year high from around 4 pct sought since the 2016 shunto talks, given that households are bearing heavier burdens due to soaring food and electricity prices.

Specifically, Rengo plans to demand a pay-scale increase of around 3 pct, up from around 2 pct it sought in the seven years to 2022, on the assumption that regular wages will be raised by 2 pct, according to the sources.

Rengo, the umbrella body of labor unions across the country, will formalize the pay hike target at a central committee meeting on Dec. 1. It will be seeking a pay-scale hike for the 10th consecutive year.

Food and energy prices have been rising due to Russia's invasion of Ukraine as well as the yen's sharp fall against the dollar. Core consumer prices, which exclude often volatile fresh food prices, rose 2.8 pct from a year before in August, according to the internal affairs ministry.

[Copyright The Jiji Press, Ltd.]

Jiji Press