Tokyo, Oct. 22 (Jiji Press)–The Japanese Trade Union Confederation, or Rengo, adopted a basic vision for next year’s “shunto” annual spring wage negotiations at a central executive committee meeting on Thursday, including a basic pay increase target of “at least 5 pct” but also mentioning “around 6 pct.” For the fourth straight year, the umbrella body for labor unions across the country will seek pay hikes of at least 5pct. At the same time, Rengo will aim to spread the momentum of pay increases that outpace inflation to a wider range of companies by mentioning “around 6 pct.” Based on the basic vision, Rengo is scheduled to formally approve a 2027 shunto policy at a central committee meeting in early December. In 2027, Rengo will basically encourage its member unions to request pay hikes of at least 5 pct but advise those with fewer than 300 members to request at least 6 pct. It will also set a medium-term target of boosting wages by around 15 pct by 2030, so that a 35-year-old employee at a medium-sized company earns 360,000 yen per month. Since 2024, unions have won an average pay increase of 5 pct or more. Whether this momentum will continue is being closely watched at a time when companies, particularly small businesses, are facing an increasingly tough environment due to inflation fueled by turmoil in the Middle East. The 2026 shunto achieved an overall average pay hike of 5.01 pct, but the average among small businesses was 4.69 pct. END [Copyright The Jiji Press, Ltd.]
