Japanese pay hikes must exceed last year's, Rengo union head says

24/1/2025 15:44

Japanese annual pay increases this year must exceed the 5.1% secured last year because real wages continue to fall, the head of the Rengo trade union group said on Friday.



President Tomoko Yoshino said the impact of rising prices meant the group was focused on securing a result that outstripped last year's, which was the biggest increase in 33 years.



"Even after last year's wage hikes I think there are few people who feel their real living conditions have improved," Yoshino said in an interview.



The outcome of the "shunto" labour negotiations is a barometer for spending and durable inflation in Japan, and a key factor that influences the central bank's monetary policy decisions.



Rengo is formally seeking wage increases of 5% or more in this year's wage negotiations.



Real wages, which take into account the impact of inflation, fell in November for the fourth straight month, data showed this month, highlighting how rising prices, especially food costs, have hit the wallets of everyday Japanese.