Photo/Illutration Workers take to the streets to call for wage hikes and a reduction in income disparities in Okayama on March 1. (Michio Mizuta)

Robust wage growth continued in this year’s “shunto” spring labor negotiations, as major companies gave favorable responses to pay hike requests from labor unions on March 12.

The responses came amid rising commodity prices and labor shortages. 

The companies had provided favorable acceptance in last year's negotiations as well, with the average pay hike rate including regular salary hike increasing by five percent range for the first time in 33 years.

Toyota Motor Corp. didn’t release the amount of its average pay hike, but it agreed to the full pay hike requested from its labor union.

It marked five years in a row that the automaker has agreed to do so. The pay hike marked the highest level in the company’s history.

Nissan Motor Co. will raise average monthly pay by 16,500 yen ($111), slightly lower than its labor unions’ request of 18,000 yen, which was granted last year. Last year's increase marked the highest since the current wage system was introduced in 2005. 

Regarding major electronics firms, all their unions requested monthly base salary increases of 17,000 yen. While Hitachi Ltd. and NEC Corp. agreed to the full amount that their unions requested, Mitsubishi Electric Corp. responded that it will increase pay by 15,000 yen.

As for major heavy industrial firms, Mitsubishi Heavy Industries Ltd. and Kawasaki Heavy Industries Ltd. will raise base salaries by 15,000 yen, the full amount of their unions’ requests.

Major steel manufacturer JFE Steel Corp. also agreed to raise monthly base salaries by 15,000 yen, the full amount requested by its union.

Meanwhile, Mitsubishi Chemical Corp. will raise monthly base salaries by 4.8 percent, or 18,415 yen, exceeding its union’s request of 4.0 percent, or 15,346 yen.

Some companies responded to their unions before March 12, the day when major companies' responses were concentrated.

Major automobile parts maker Denso Corp. decided to raise average monthly pay including base salaries and regular pay increase by 23,500 yen starting in April, the largest hike in the company’s history.

Major food-service company Zensho Holdings Co. said it will increase the base salaries for its regular employees by an average 7.68 percent, higher than what was requested.

On the other hand, Suntory Holdings Ltd. announced that it will give a monthly base salary increase of 12,000 yen starting in April, lower than its union request of a monthly 14,000 yen hike.

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