Catherwood LibraryILR School

Major firms and unions in Japan have negotiated wage increases, and it is reported that wages will increase by 5.28%. The increase is the highest in decades but is still slightly below the demanded wage increase from the Japanese Trade Union Confederation. The Japanese Trade Union Confederation has hundreds of affiliated labor unions and was seeking a 5.85% increase in pay. The economic conditions in Japan allow for a large pay increase, and the country has high corporate earnings and shortages of workers in various industries. The government has stated that it strongly supports wage growth in the economy, and the pay hike momentum is crucial to fighting deflation in Japan’s economy. Last year’s pay increase was 3.8%, which was a record as well. Major Japanese companies and numerous trade unions reached agreements late last week, and many of the firms met all of the demands from unions. Toyota, the world’s leading automaker, accepted all union demands and significantly increased hourly wages.