Photo/Illutration Leaders of Keidanren, representing Japan’s largest corporations, and Rengo, a labor unions’ association, meet on Feb. 1 in Tokyo’s Chiyoda Ward as part of the annual “shunto” wage negotiations. (Takaya Katada)

In a rare display of unity in lifting Japan out of its prolonged deflation, leaders from labor and management jointly called for pay hikes exceeding inflation, during the annual “shunto” wage negotiations.

“Even more dedicated and resolved than last year, we are determined to deliver wage increases that outpace inflation,” said Masakazu Tokura, chairman of Keidanren (Japan Business Federation), at a meeting with labor union leaders on Feb. 1.

“We need to ensure that the benefits of wage hikes reach every worker, from large corporations to the smallest businesses,” said Tomoko Yoshino, chairwoman of Rengo (Japanese Trade Union Confederation).

That is crucial for a transition to an economy offering a stable growth in wages and prices, she stressed.

For its member unions, Rengo has set a shared goal of a pay hike of 5 percent or more for this year’s shunto. That is a more ambitious target compared to the “about 5 percent” demand made last year.

Responding positively to the labor unions’ call for pay hikes, Keidanren has urged big businesses to support smaller companies’ efforts to raise wages.

Many labor unions will make their demands for pay raises in February. Most large companies are expected to give their responses in the middle of March.

(This article was written by Takaya Katada and Hideki Aota.)

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