Corporate executives and labor unions on Tuesday effectively began this year's spring wage negotiations amid expectations that the pace of pay increases will slow due to the coronavirus pandemic.
With many companies taking a hit from the spread of the virus, which has depressed economic activity and hurt their earnings, Japan's most powerful business lobby, Keidanren, has stressed the need for companies to have more leeway and that aiming for pay hikes across the board is "unrealistic."
The Japanese Trade Union Confederation, known as Rengo, meanwhile, is set to demand a pay hike of around 2% in base pay during forthcoming negotiations that will go into full swing by March.