Rengo Mentions 6 Pct Pay Increase in 2027 Shunto Vision

Tokyo, Oct. 22 (Jiji Press)--The Japanese Trade Union Confederation, or Rengo, adopted a basic vision for next year's "shunto" annual spring wage negotiations at a central executive committee meeting on Thursday, including a basic pay increase target of "at least 5 pct" but also mentioning "around 6 pct."

For the fourth straight year, the umbrella body for labor unions across the country will seek pay hikes of at least 5pct. At the same time, Rengo will aim to spread the momentum of pay increases that outpace inflation to a wider range of companies by mentioning "around 6 pct."

Based on the basic vision, Rengo is scheduled to formally approve a 2027 shunto policy at a central committee meeting in early December.

In 2027, Rengo will basically encourage its member unions to request pay hikes of at least 5 pct but advise those with fewer than 300 members to request at least 6 pct.

It will also set a medium-term target of boosting wages by around 15 pct by 2030, so that a 35-year-old employee at a medium-sized company earns 360,000 yen per month.

[Copyright The Jiji Press, Ltd.]