Biz, union leaders meet for full-fledged wage talks

January 23, 2018

Tokyo- The leaders of Japan's largest business group and labor union umbrella body met on Tuesday for full-fledged "shunto" annual spring wage negotiations.

At the meeting in Tokyo, Sadayuki Sakakibara, chairman of the Japan Business Federation, or Keidanren, stressed that his group has made a stronger request than before for pay rises by member companies.

Keidanren urged member firms to "be aware of expectations from society for 3 percent wage hikes and make a positive response," Sakakibara said.

Rikio Kozu, president of the Japanese Trade Union Confederation, or Rengo, appreciated the consensus the two sides reached over wage increases.

It is important to expand efforts to narrow pay gaps between large and smaller companies and between regular and nonregular employees fully across society, Kozu said.

Labor unions of major companies, including automakers and electronics firms, will submit pay growth requests to the management in the near future.

Negotiations between labor and management are expected to heat up in the lead-up to March 14, when many companies are scheduled to present their wage proposals to the labor side.

Prime Minister Shinzo Abe has called for wage increases of at least 3 percent for this year's shunto talks, marking the fifth year in a row in which the government has asked employers to raise wages.

Rengo aims for 4 percent wage hikes through a rise in both regular salaries and pay scales. The organization gives bigger importance to pay scale increases.

According to a Keidanren tally, the wage growth rates among major companies in the past four years stood below 3 percent. Substantial hikes would help shore up consumption and create a virtuous economic cycle in the country.

Sakakibara and Kozu also discussed the government-led work-style reforms.

A proposed measure to exclude high-paid professionals from restrictions on working hours "will increase options for workers and make it easier for people to work," Sakakibara said.

But Kozu reiterated his opposition to such a step. Jiji Press