In late October, Tomiko Yoshino, the chairwoman of Rengo, Japanese Trade Union Confederation, announced that next years’ Spring the Confederation would aim for the highest wage increase in 25 years.
You Should Care Because: Union claimed that the increase is essential to address declining living standards and the rising consumer price index in Japan.
By the numbers: Japan has experienced the 17th straight month of real wage decline despite higher pay increases by Japanese companies.
The big picture: Efforts to combat deflation and stimulate inflation have proven challenging in Japan in recent year. Wage growth is impacted by several factors, such as a demographically contracting workforce, limited immigration, and high job security. But it is also impacted by a deflationary mindset among consumers and businesses that emphasizes saving and frugality – leading to a reluctance to spend and invest.
HR Policy Globa’s Take: Despite the union’s intention, leading large Japanese conglomerates will set the benchmark in the negotiations.