TOKYO (Reuters) – 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 told Reuters on Friday.
Rengo is formally seeking wage hikes of at least 5% in this year’s “shunto” wage negotiations. 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.
Rengo has targeted hikes of at least 6% for smaller firms to narrow the income gap with workers at bigger companies.
She spoke to Reuters hours before the Bank of Japan was set to announce its latest interest-rate decision on Friday. Traders were almost fully pricing in the chance of a rate hike.