While attention tends to focus on wage talks at trendsetting major firms in the annual labor-management negotiations, equally important this year will be the extent that the economic upturn benefits employees at small and medium-size firms, and irregular workers — who account for a growing portion of the nation's labor force.
Recent data suggest that Japan may finally be emerging from its state of deflation. But prices are rising faster than workers' wages, and the consumption tax hike in April will add to the burden on households. Total wage incomes of employees remain near record-low levels as companies turn more to low-paid part-time workers.
In talks between the Japan Business Federation (Keidanren) and the Japan Trade Union Confederation (Rengo) that started last week, both sides agreed on the need for pay raises to help ensure the economic recovery over the past year becomes self-sustaining. For the first time in years, Keidanren is urging member companies to turn their improved earnings into higher pay for workers.