Rengo to Seek Pay Hikes of At Least 5 Pct in 2026 Shunto

Tokyo, Oct. 23 (Jiji Press)–The Japanese Trade Union Confederation, or Rengo, said Thursday it plans to demand pay increases of 5 pct or more in “shunto” annual spring wage negotiations for the third straight year next year. The umbrella body for labor unions across the country compiled its basic plan for the 2026 shunto at a meeting of its central committee. Despite concerns over the economic impact of high U.S. tariffs, Rengo will seek large pay hikes to deal with inflation and solidify the trend of wage increases. Rengo will call for pay scale increases of 3 pct or more in addition to regular wage hikes. For small companies, it will seek pay rises of at least 6 pct, or at least 18,000 yen in monthly pay, to narrow the wage gap between large and small companies. The body will formally adopt the basic plan at a central committee meeting next month. Although wage hikes of over 5 pct have been achieved for two consecutive years from 2024, real wages in Japan have continued to slide year-on-year. The basic plan said that “private consumption remains sluggish as only a few feel that their livelihoods have improved,” and that “wage hikes that can boost consumer sentiment in Japan are essential” to overcome the negative effects of high U.S. tariffs. According to a Rengo tally, the 2025 shunto achieved a weighted-average wage increase of 5.25 pct, the highest in 34 years. The average stood at only 4.65 pct for small unions with less than 300 members. Rengo plans to strengthen efforts to have companies reflect increased labor costs in the prices of their goods and services. END [Copyright The Jiji Press, Ltd.]