Japan's largest labor and management groups have kicked off their annual round of negotiations, with each side releasing a position paper. Basically the two sides agree that under present circumstances protecting jobs is more important than raising wages. That sounds reasonable enough, given that the unemployment rate has hit a record 5.5 percent, with 3.5 million people out of work.

How times have changed. In previous rounds, even in times of economic recession, labor's primary objective was to secure wage increases. Now, in an unprecedented policy reversal, labor has made job security its top priority, sidelining its usual demands for higher pay.

Employment is also the greatest concern of management in this year's "shunto" (spring labor offensive). Nikkeiren, the Federation of Employers Associations, says in its annual report that, in light of current economic and business conditions, labor and management should not waste time arguing over an "either or" choice between jobs and wages. "From the point of view of maintaining international cooperation," it says, "further wage increases are out of the question."

The Nikkeiren report, departing from conventional policies, calls for a range of bold steps -- not just suspending the traditional practice of wage bargaining, but also freezing or reviewing periodic raises (which are built into the pay scale as an integral part of the seniority-based wage system) and working out ad hoc job-sharing arrangements aimed at securing employment.

Simply put, the message is this: Management will do its best to protect jobs but, in principle, will not award any wage increases. Until now, basic pay had regularly increased every year regardless of the results of wage talks. That portion of wage increases was considered a "sanctuary" from the ups and downs in annual wage settlements. Now, however, even these built-in raises are no longer off-limits.

The pay freeze, or something close to it, is probably unavoidable given the worsening economic slump and the rising jobless rate. No wonder the policy statement by Rengo, the Japanese Trade Union Confederation, also includes precedent-breaking pronouncements. The leading labor group says it will not make any unified wage demand, forsaking a traditional practice that for a decade has set the pace for shunto wage negotiations.

The new Rengo chairman, Kiyoshi Sasamori, has said time and again that he will no longer use the word "be-a" (short for "beisu-appu," or base-up, meaning negotiated wage increases). Indeed, the 2002 shunto will go down in history as the first spring labor offensive in which unions have given up wage demands.

There are a few exceptions, however. Some industrial union federations in sectors such as automobiles, shipbuilding/heavy machinery and private railways are planning to demand modest increases. But other federations, including those in the electronics and power industries, are expected to withhold demands along with groups in the steel and information-related industries.

In past shunto rounds, metalworkers unions took the lead, setting a benchmark for wage settlements in a broad spectrum of industries. Moreover, "shunto standards" helped raise the wage levels of vast numbers of unorganized workers in the small-business sector. That kind of synergy is no longer possible.

The fact is that the traditional wage-bargaining shunto is now a thing of the past. Signs of its collapse began to appear several years ago as Japan's economy slipped deeper into recession. Yet Rengo and other labor organizations are still unable to devise a new formula for collective bargaining. It is unclear whether the bold decision to forgo shunto-style wage increases reflects new thinking on the part of organized labor.

In its own annual report, Rengo says it will strive to "maintain and improve the wage curve." This means, first, that the system of periodic increases should be maintained. It also means that, where this system does not exist, increases equivalent to periodic raises should be secured as far as possible. The second proposal is particularly important considering the sharp rise in the number of temporary, part-time and contract workers who are not assured of periodic raises.

It also should be noted that just 20.7 percent of all workers belong to unions. This means that periodic raises, even if they become a subject of negotiation, will involve just a fifth of the labor force. If the shunto is to acquire a new role, it should address employment issues in a broader context in ways that can bring benefits to millions of nonunionized workers as well.