Japan Unions Clinch 5.01 Pct Wage Hikes in 2026 Shunto

Tokyo, July 3 (Jiji Press)–Japanese labor unions won wage increases of 5.01 pct in this year’s “shunto” negotiations, the final results of a survey by the Japanese Trade Union Confederation, or Rengo, showed Friday. The weighted average of pay scale and regular salary hikes, equivalent to a raise of 16,400 yen per month, was 0.24 percentage point lower than in the 2025 shunto spring labor-management talks but achieved Rengo’s goal of a 5 pct or larger increase. The pay hike rate topped 5 pct for the third consecutive year. Among smaller unions with fewer than 300 member employees, the average increase came to 4.69 pct, or 12,866 yen per month. The rate was up 0.04 point. Wages rose mainly in the passenger and goods transport sector and the commerce and logistics sector, amid labor shortages. Still, the rate fell far short of Rengo’s target of 6 pct or more for smaller unions. The national umbrella body for labor unions set the higher target for smaller businesses, which account for about 70 pct of employment in the country, in an effort to rectify wage disparities with larger firms. Senior Rengo official Akira Nidaira told a press conference that the latest wage increases of over 5 pct confirmed “further progress toward a society in which wage hikes are common.” He noted that the results at smaller companies were influenced by whether they were able to pass on rising costs to prices. “Some companies are still struggling.” In the 2026 shunto, 5,564 unions demanded wage hikes, and 57.7 pct of the 5,162 unions that reached agreements with management won pay scale increases. By industry, the average wage increase came to 5.24 pct in the manufacturing sector and 5.85 pct in the information and publishing sector, both topping 5 pct for the second straight year. The average came to 4.60 pct in the commerce and logistics sector, 4.13 pct in the passenger and goods transport sector, and 4.04 pct in the service and hotel sector. On the impact of turmoil in the Middle East on the latest shunto, Nidaira said that unions were “able to negotiate tenaciously despite major changes in the environment.” With materials prices and logistics costs expected to continue rising, however, the deteriorating business environment may weaken the wage hike momentum next year and beyond, pundits said. END [Copyright The Jiji Press, Ltd.]