Many Major Japan Firms Fully Accept Pay Hike Demands

Tokyo, March 18 (Jiji Press)–Many major Japanese companies fully accepted their unions’ pay hike demands Wednesday, when this year’s “shunto” spring labor-management negotiations reached a climax. Despite an uncertain business environment due partly to U.S. President Donald Trump’s high tariff policy and escalating tensions in the Middle East, moves to raise wages to secure effective workers are spreading among large firms. In the automobile industry, Toyota Motor Corp. fully met its union’s request for monthly wage and bonus hikes for the sixth straight year. The leading Japanese automaker aims to reward employees who are working strenuously to improve productivity in defiance of a tough business climate reflecting the U.S. tariff policy. Among its peers, Nissan Motor Co. and Mazda Motor Corp. earlier this month announced decisions to fully accept hikes requested by their respective unions. In the electronics sector, Hitachi Ltd., Mitsubishi Electric Corp., NEC Corp. and Fujitsu Ltd. fully accepted a unified pay scale hike request of 18,000 yen per month, marking the highest agreed level under the current negotiating format. Elsewhere, Mitsubishi Heavy Industries Ltd., Kawasaki Heavy Industries Ltd. and IHI Corp. agreed to offer a pay scale hike of 16,000 yen, fully accepting the amount requested for the fourth consecutive year on the back of strong orders for defense-related equipment. At all three major steelmakers, however, management responses fell short of the levels requested by labor, reflecting drops in steel prices. Against a uniform pay scale hike demand of 15,000 yen, Nippon Steel Corp. proposed 10,000 yen, JFE Steel Corp. 7,000 yen and Kobe Steel Ltd. 13,000 yen. Close attention is being paid to whether the wage hike momentum will spread to small companies, which employ about 70 pct of all workers in Japan. Many small firms are due to give their responses to union demands after large companies make theirs. Still, concerns are rising that soaring energy prices blamed on the prolonged conflict between U.S.-Israeli forces and Iran will pressure corporate earnings in Japan. END [Copyright The Jiji Press, Ltd.]