Japan Biz Leaders Show Willingness to Continue Wage Hikes

Tokyo, Jan. 7 (Jiji Press)--Leaders of Japan's three major business groups, at a joint press conference in Tokyo on Tuesday, expressed a willingness to continue wage hikes in this year's "shunto" spring labor-management negotiations.

"There were high levels of wage increases in 2023 and 2024," said Masakazu Tokura, chairman of the Japan Business Federation, or Keidanren. "2025 is the year (the trend) will take root."

Tokura noted the need to support efforts by small businesses, which account for 70 pct of the country's employment, to reflect higher costs in their prices so that they can raise wages. "Quality goods and services have a price," he said.

The Japanese Trade Union Confederation, or Rengo, the umbrella group for labor unions nationwide, has decided to keep its wage increase target this year unchanged from 2024 at 5 pct or more, while setting the target for unions at small businesses at 6 pct or more.

Japan Chamber of Commerce and Industry chief Ken Kobayashi said at the press conference that many small businesses lack the financial strength to raise wages. "There must be support," Kobayashi said. "We will do everything we can to achieve 6 pct (wage increases)."

[Copyright The Jiji Press, Ltd.]