Daily Management Review

Large companies In Japan will raise wages in spring to the maximum since 1992


According to the Financial Times, which cites analysts' projections, major Japanese corporations will raise workers' compensation by an average of more than 4% following spring negotiations with labor unions. This would be the largest growth since 1992 despite a sharp rise in the cost of living and growing labor shortages.

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In 2023, union compensation increased by 3.6%.

Toyota, the carmaker, announced on March 13 that it completely approves of the union's request to increase salaries by up to 28,440 yen ($193) each month. This hike represents the most since similar data started to be made public in 1999.

In February, Honda decided to increase yearly compensation by the highest 5.6% since 1989.

Nippon Steel, the steelmaker, plans to increase base salary by 11.8%, which is greater than what the union had requested. The union had been asking for the largest monthly pay increase since 1979.

The "shunto" talks, or spring negotiations between labor unions and corporations in Japan, are scheduled to come to a close in major part on Wednesday. They serve as a crucial predictor of the nation's future increases in consumer prices.

Analysts predict that the Bank of Japan may be able to end its negative interest rate policy as early as next week due to the excellent shunto results.

source: ft.com