It has been a long time since the word "shunto" -- the spring labor offensive -- stood for its traditional meaning. With the domestic economy caught in a deflationary spiral, the idea of winning across-the-board wage concessions from management on top of regular pay increases no longer holds water. So it comes as no surprise that employers are bracing for a reverse shunto in spring 2003: a round of negotiations aimed at reducing wages.

A report from Nippon Keidanren, or the Japan Business Federation, says negotiated "base-up" increases are out of the question, noting that Japanese companies face a pressing need to strengthen their ability to meet price competition in world markets. Moreover, the report calls for talks to focus on either freezing or readjusting regular increases in basic pay that are linked to seniority. "The corporate ability to pay has been seriously weakened," it points out. "Many companies are under pressure to cut wages."

The report, published earlier this month by the federation's committee on management and labor policy, sets guidelines for big-business employers as they prepare for shunto 2003. Nippon Keidanren, the nation's most powerful business lobby, was created in May of this year through a merger between Keidanren (the Federation of Economic Organizations) and Nikkeiren (the Federation of Employers Associations).