Rengo Advised to Win Wage Hike of Over 5 Pct in 2026 “Shunto”

Tokyo, Sept. 20 (Jiji Press)–An advisory panel of outside experts established by the Japanese Trade Union Confederation, or Rengo, has published a report calling on the organization to aim for a wage hike of more than 5 pct in next year’s “shunto” labor-management negotiations. The report, released Friday, said that the umbrella body for labor unions in the nation should aim to achieve a wage hike of over 5 pct for the third consecutive year, stressing that the 2026 shunto will be a crucial opportunity to firmly establish a healthy cycle of rising wages and prices, despite concerns over deteriorating corporate profits due to the high tariff policy of the administration of U.S. President Donald Trump. Since its establishment in June, the advisory panel has discussed measures to maintain wage increases and improve the living standards. The report proposed that Rengo should put weight on future price forecasts over past inflation rates when deciding the levels of pay hike demands and that its wage hike requests should be set at reasonable levels that help alleviate labor shortages. Also, the report called for setting up a “catch-up clause” stipulating that declines in real wages resulting from higher-than-expected inflation should be covered in the following year’s shunto negotiations. At a symposium in Tokyo on Friday, Rengo President Tomoko Yoshino said, “Taking the panel’s proposals into account, we will consider how we can establish the wage hike momentum as a social norm.” Rengo is set to launch in-depth discussions on its wage hike demand for the 2026 shunto. END [Copyright The Jiji Press, Ltd.]