According to Reuters, unions at major Japanese automakers will set specific pay raise targets during wage negotiations for the first time in seven years. The move aims to encourage smaller companies to follow suit in raising wages.
On December 11, the Confederation of Japan Automobile Workers' Unions announced plans to seek a monthly wage increase of at least 12,000 yen (approximately $79.15) in the upcoming spring wage negotiations. This would translate to an approximate 5% increase in base pay for member companies with fewer than 300 employees. The Japanese government also hopes that broader and sustained wage growth will boost consumer spending and support the country's fragile economic recovery.
At a press conference, executives from the Confederation explained that setting a specific numerical target provides smaller unions, such as those representing parts manufacturers, with a reference point they can leverage during negotiations.
The Confederation, which includes unions from Toyota, Honda, and 10 other companies, represents 784,000 workers. Its chairman, Akihiro Kaneko, stated:
"With a concrete goal, we hope to empower smaller union members to confidently push for significant wage increases." The government and unions are working to ensure pay raises for smaller firms, as significant wage hikes have so far been largely confined to large corporations.
Additionally, Japan's largest labor organization, Rengo, which includes automotive unions, is also pushing for at least a 5% wage increase by 2025. This includes a base pay raise of over 3%. Earlier this year, Japanese companies agreed to an average wage hike of 5.1%, the largest in three decades, up from a 3.5% increase last year, according to Rengo data.
