Photo/Illutration A board at the Japan Council of Metalworkers’ Unions shows offers made by steelmakers, heavy machinery makers and other companies during the “shunto” spring labor offensive on March 13. (Hikaru Uchida)

Many large corporations met their workers’ demands in full for wage increases in line with Prime Minister Fumio Kishida's call for significant hikes to fight the rising cost of living.

Nippon Steel Corp., for example, promised more than what its labor union called for on March 13, when many large companies put their offers on the table during the “shunto” spring labor offensive.

The nation’s largest steelmaker said it will raise its base-pay scale by a record 35,000 yen ($238) per month--5,000 yen more than its labor union demanded.

The amount represents 11.8 percent of the average wages at the company.

It compares with a 2,000-yen hike in base pay for the current fiscal year.

Nippon Steel is not alone in its generous compensation to employees. 

Mitsui Mining & Smelting Co., a nonferrous metal company, said on Feb. 14 that it agreed on a 20,000-yen base-pay increase with its labor union, which had demanded 15,000 yen.

Suzuki Motor Corp. said March 8 it will increase wages by more than 10 percent, including an annual regular raise, saying the hike exceeds what its labor union had sought.

This year’s shunto wage negotiations are being closely watched as Japanese consumers continue to struggle with the rising prices of everything from food to energy.

At a meeting with management and labor representatives in January, Kishida called for wage hikes exceeding the levels of 2023.

In last year’s shunto, the wages of regular employees increased 3.58 percent, on average, the largest margin in 30 years, which reflects price increases and labor shortages, according to Rengo (Japanese Trade Union Confederation).

But real wages declined from year-earlier levels for 22 months in a row through January as pay hikes failed to keep pace with inflation.

For this year’s shunto, labor unions under Rengo’s umbrella demanded a 5.85-percent wage increase, on average, according to figures Rengo released on March 7.

It is the first time the average demand exceeded 5 percent since 1994.

On March 13, steelmakers JFE Steel Corp. and Kobe Steel Ltd. met their labor unions’ demand for a base-pay increase of 30,000 yen in full.

So did heavy machinery makers Mitsubishi Heavy Industries Ltd., Kawasaki Heavy Industries Ltd. and IHI Corp., which agreed to a 18,000-yen hike, and electric machinery makers NEC Corp., Mitsubishi Electric Corp., Fujitsu Ltd. and Hitachi Ltd., which offered 13,000 yen.

The same day, Toyota Motor Corp. and Nissan Motor Co. fully met their labor unions’ demands for the fourth consecutive year.

Toyota, the nation’s top automaker, does not disclose the amount of its wage increases, but the labor union said it is the highest since 1999 when comparable figures became available.

The moves by Toyota and Nissan follow two industry rivals, Honda Motor Co. and Mazda Motor Corp., which fully met their labor unions’ demands in February.

Also in February, supermarket operator Aeon Retail Co. and family restaurant chain Skylark Holdings Co. accepted their workers’ demands as requested. 

Related News