Abe calls for 3% pay hike in 2018 “Shuntoˮ wage talks

October 27, 2017

Japanese Prime Minister Shinzo Abe on Thursday called on companies to accept a 3 percent pay hike in the "shunto" labor-management negotiations next spring, even larger than the average hike of about 2 percent a year before.

"I hope that 3 percent pay growth will be achieved as we steadily proceed with reforms to improve productivity," Abe said at a meeting of the Council on Economic and Fiscal Policy.

Abe gave a specific number as a shunto target for the first time.

In response to the request, Japan Business Federation Chairman Sadayuki Sakakibara, a council member from the private sector, expressed willingness to urge Keidanren member companies to take "more proactive measures," noting that companies are facing "social demand" to increase employee pay. Jiji Press