Annual pay increases at precision parts maker Fujiseiki have been unremarkable in recent years, eliciting little interest beyond the employees who live atop its Tokyo factory.
But wage growth at such small Japanese companies is in the spotlight this year as the Bank of Japan looks for bigger wage gains that can sustain the price growth it seeks.
Japan’s large companies and labor unions are holding their annual wage negotiations, with initial conclusions due next week. After large wage hikes from companies such as Uniqlo-operator Fast Retailing and automobile giant Toyota, and demands by Prime Minister Fumio Kishida that more businesses raise pay, there are expectations for the biggest wage gains in years.