Japan’s largest labour organisation calls for 4% pay hike

Japan’s largest labour organisation has called for a 4% wage hike in the upcoming annual wage negotiations.

Members of the Japanese Trade Union Confederation, otherwise known as Rengo, have reached an agreement to demand a pay hike of around 2%, and an annual pay raise of 2% during the upcoming annual wage talks, which will be held early next year. 

This marks the seventh consecutive year that Rengo has sought a pay hike of around 2%, reports The Japan Times. In wage negotiations held earlier this year, businesses had agreed to an average 1.78% wage hike, in response to expectations of a 4% pay hike.

“We cannot say that [wealth] has been distributed appropriately to workers. Labour unions need to proactively ask for investment in people,” said Tomoko Yoshino, who took on the reins as Rengo’s first female chief in October.

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In November, Prime Minister Fumio Kishida expressed hope that companies will agree to increase wages by over 3% in the upcoming wage talks. “I want companies whose earnings have returned to levels before the novel coronavirus pandemic to realise a wage increase of over 3%,” he said then.