Rengo Formalizes Plan to Demand 5 Pct Pay Hike

Economy

Tokyo, Dec. 1 (Jiji Press)--The Japanese Trade Union Confederation, or Rengo, on Thursday formalized a plan to demand a pay hike of around 5 pct in next year's "shunto" spring labor-management negotiations.

The lifting of the target for pay-scale and regular salary growth from around 4 pct set for 2022 negotiations is aimed at having wages reflect higher prices stemming from the yen's rapid depreciation and other factors, which have been weighing on household finances. The pay hike target had stayed at around 4 pct since 2016.

Rengo's decision was made at the day's central committee meeting held in Urayasu, Chiba Prefecture, east of Tokyo.

Specifically, Rengo plans to seek a pay-scale increase of around 3 pct, up from around 2 pct demanded in recent years, making a pay-scale hike request for the 10th consecutive year.

Even if the 2023 demand is met, however, the pace of wage increases may not catch up with that of price hikes after the country's core consumer price index, which excludes often volatile fresh food prices, in October rose 3.6 pct from a year before, faster than the pay-scale hike sought by Rengo.

[Copyright The Jiji Press, Ltd.]

Jiji Press