Japan's largest unionists group aims for wage hikes of 5% in 2024 (updated)
19/10/2023 08:39
(Recasts with quote, detail, background)
By Tetsushi Kajimoto
TOKYO, Oct 19 (Reuters) - Japan's largest labour
organisation Rengo is set to demand wage hikes totalling 5% or
more, its president Tomoko Yoshino said on Thursday.
"It's important for wages to sustain growth. With that in
mind, we've decided to aim for more than 5%," Yoshino told
reporters, adding it was the bottom line to drive a wave of wage
hikes.
"It's true, uncertainty is high," she said, citing
developments such as the conflict in the Middle East and the
plight of many small firms which are struggling to make ends
meet.
Rengo will finalise its stance towards next year's wage
negotiations in December.
Policy makers have said wage hikes are a major issue in
Japan as the world's third biggest economy strives to put an end
to deflation and sustain inflation at 2% in a stable manner.
Japanese wages were stagnant for decades until last year,
when rising raw material costs pushed up inflation and piled
pressure on firms to compensate employees with higher pay.
Major companies agreed to average pay hikes of 3.58% this
year, the highest increase in three decades.
On Thursday, Rengo kicked off debates on pay rises for the
coming year and set its expected wage demand by year end, before
it negotiates with management early next year so that major
firms can offer pay rises around the middle of March.
"It does not mean that the wage hike will be over in 2024.
What's important is to continue to raise wages steadily and
sustainably," Yoshino added.
(Reporting by Tetsushi Kajimoto; Editing by Muralikumar
Anantharaman and Christina Fincher)
((tetsushi.kajimoto@thomsonreuters.com; +81-3-6441-1829;))