Friday , 28 February 2025
Home Forex ICYMI – Japanese labour unions push for record wage hike amid rising costs
Forex

ICYMI – Japanese labour unions push for record wage hike amid rising costs

Various reports of this about, from Japanese and other media. In summary:

A leading Japanese labour union group representing major manufacturers has called for an unprecedented increase in base salaries this year, driven by mounting living costs and last year’s strong wage momentum.

The Japan Council of Metalworkers’ Unions (JCM), which plays a key role in shaping annual wage negotiations, represents approximately 2 million employees at major corporations such as Toyota Motor, Panasonic, and Nippon Steel.

According to the JCM, its members have so far requested an average monthly base salary increase of 14,149 yen—the highest figure recorded since the group began tracking comparable data in 2014. This marks a 14% increase from the average base pay hike sought at the same point last year.

The findings are based on responses from nearly half of JCM’s 3,050 member unions that have already submitted their wage demands.

Securing higher base salaries is seen as essential for Japan’s broader objective of achieving sustainable wage growth that surpasses core inflation, which remains above 3%. Unlike standard annual pay increases linked to seniority, base pay rises directly impact long-term wage structures.

Meanwhile, Japan’s largest labour organisation, Rengo, of which JCM is a key affiliate, is pushing for an overall wage increase of at least 5% in 2025, including a minimum 3% rise in base salaries..

The case for nearer term Bank of Japan rate hikes continues to build.

This article was written by Eamonn Sheridan at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Japan PM Ishiba’s government cuts FY25/26 Budget plan to JPY 115.2tln

Japan PM Ishiba's government cuts FY25/26 Budget plan to JPY 115.2tlnalso will...

ForexLive Asia-Pacific FX news wrap: USD rally continues, BTC tests US$80K

UK Energy Secretary Ed Miliband to visit China for talks on UK-Sino...

UK Energy Secretary Ed Miliband to visit China for talks on UK-Sino energy cooperation

UK Energy Secretary Ed Miliband to visit China March 17 to apto...

Federal Reserve Bank of Chicago President Goolsbee speaking (very) late on Friday

Federal Reserve Bank of Chicago President Austan Goolsbee participates in a moderated...