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Japanese pay increases this year must exceed last year’s, Rengo union head says

2025.01.23 22:37

TOKYO (Reuters) – Japanese annual pay increases this year must exceed the 5.1% secured last year because real wages continue to fall, the head of the Rengo trade union group told Reuters on Friday.

Rengo is formally seeking wage hikes of at least 5% in this year’s “shunto” wage negotiations. President Tomoko Yoshino said the impact of rising prices meant the group was focused on securing a result that outstripped last year’s, which was the biggest increase in 33 years.

“Even after last year’s wage hikes I think there are few people who feel their real living conditions have improved,” Yoshino said in an interview.

© Reuters. FILE PHOTO: Tomoko Yoshino, President of the Japanese Trade Union Confederation, commonly known as Rengo, delivers a speech during their annual May Day rally to demand higher pay and better working conditions, in Tokyo, Japan April 29, 2023. REUTERS/Issei Kato/File Photo

Rengo has targeted hikes of at least 6% for smaller firms to narrow the income gap with workers at bigger companies.

She spoke to Reuters hours before the Bank of Japan was set to announce its latest interest-rate decision on Friday. Traders were almost fully pricing in the chance of a rate hike.



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