The Japanese Trade Union Confederation, Rengo, is gearing up for next year’s spring wage negotiations, with plans to push for pay hikes of 5% or more, following the success of this year’s talks. The aim is to combat inflation and bridge the wage gap between large and small businesses by supporting small firms in adjusting prices.
Rengo will officially set the pay increase target at a meeting in November, with industry and individual unions then preparing their specific requests for the 2025 negotiations. Despite achieving a 5.10% wage increase in 2024 – the highest in 33 years, real wages in Japan have continued to fall for 26 months due to inflation.
Rengo’s President, Tomoko Yoshino, is committed to enhancing wages at small businesses, a focal point in the upcoming general election. Prime Minister Shigeru Ishiba, who recently took office, has also emphasized the government’s efforts to secure wage increases above inflation.