Mizuho union follows rivals in seeking no pay hike

Kyodo

The labor union of Mizuho Financial Group Inc. decided Wednesday not to request a pay-scale hike at this year’s wage talks, given that the banking group has taken a battering from the central bank’s negative interest policy, sources said.

The union plans to gain members’ approval by the end of March before informing management of the decision, they said.

It would be the first time since 2013 for Mizuho Financial Group workers not to submit such a request.

The decision follows a similar plan by the labor union of Sumitomo Mitsui Banking Corp., the core unit of Sumitomo Mitsui Financial Group Inc.

The union of Bank of Tokyo-Mitsubishi UFJ, the nation’s third major banking group, is expected to follow.

Banks’ share prices have suffered since the Bank of Japan implemented its policy of charging 0.1 percent on additional reserves to facilitate lending and investment.

BTMU, Mizuho and SMBC all raised base wages by 0.5 percent in 2014 and 1.5 percent in 2015.