“Shunto” Spring Wage Talks Kick Off in Japan

Tokyo, Jan. 27 (Jiji Press)–The Japan Business Federation, or Keidanren, and the Japanese Trade Union Confederation, or Rengo, held a meeting of their leaders on Tuesday, effectively starting this year’s “shunto” spring wage talks. At the meeting in Tokyo, Keidanren Chairman Yoshinobu Tsutsui and Rengo President Tomoko Yoshino shared the view that it is important to strengthen the momentum for wage increases. The focus of the 2026 shunto negotiations is whether the wage hike trend will be maintained after achieving pay increases of 5 pct or more for the second consecutive year in the 2025 shunto, so that wage growth will outpace inflation and improve at small and mid-sized businesses. Both labor and management aim to achieve wage hikes that outpace inflation. “We have many points to share,” Tsutsui said after the meeting. “It was meaningful.” “We’re moving in the same direction,” Yoshino said. “I felt a strong resolve from Keidanren” to bring about high wage growth at companies, including small and mid-sized businesses. Wages at smaller companies rose 4 pct on average last year. Rengo’s policy for the 2026 shunto includes requesting wage increases of more than 5 pct, the same as in the 2025 shunto. Keidanren’s policy calls for playing a leading role in adding to the momentum for wage hikes. In Japan, price-adjusted real wages have decreased for 11 months in a row through last November. “Private consumption has remained low as few consumers feel that living conditions have improved,” a Rengo official said. Small and mid-sized firms, which account for 70 pct of employment in Japan, have been forced to raise wages to secure human resources. “For wage increases at small and mid-sized firms, it is important to reflect labor and other costs in prices,” Yoshino stressed. END [Copyright The Jiji Press, Ltd.]