The Japan Trade Union Confederation, or Rengo, plans to call for wage increases of 5% or more next year. shuntō wage negotiations in the spring, as happened during this year’s shuntō talks, Jiji Press learned on Wednesday.
Rengo aims to see large wage increases take root in the country amid inflation. It will also step up efforts to correct the wage gap between large and small companies by supporting small businesses’ moves to reflect higher costs in prices.
Rengo is expected to adopt the pay increase target at a central executive committee meeting on Friday and formally approve it at a central committee meeting in November.
Based on Rengo’s target, industry and individual unions will formulate their specific wage increase requests for the 2025 shuntō.
The 2024 shuntō achieved a weighted average wage increase of 5.10%, the highest in 33 years. However, inflation-adjusted real wages in Japan have fallen for 26 consecutive months through May.
Rengo President Tomoko Yoshino has indicated that the group will focus on raising wages at small businesses.
Wage growth is a key issue in the October 27 general election. Prime Minister Shigeru Ishiba, who took office early this month, said in a parliamentary speech that his government will make efforts to achieve wage increases above inflation.
