TOKYO, November 21 (Reuters) – Officials say that on Tuesday, a Japanese union for small makers asked for a record monthly pay rise of 12,000 yen ($80), which is 4% of base pay, for 2024.
The Japanese Association of Metal, Machinery, and Manufacturing Workers (JAM) wants higher wages, which is similar to what other unions have asked for. This gives people hope that Japan will soon be able to stop its deflationary trend and for the Bank of Japan to move closer to normalising policy.
Big companies have raised wages by about 3.6% this year, which is the most in 30 years. This is the result of the yearly wage talks between workers and management. Firms are being pushed by policymakers to raise wages even more next year.
For large wage increases, small and medium-sized businesses (SME) are very important. About 70% of Japanese workers are hired by SME.
Journalists were told by JAM head Katahiro Yasukochi that the most important thing was to see wage growth that was faster than price increases.
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The biggest trade union group in Japan, Rengo, wants pay raises of at least 5% a year starting in 2024. Of this amount, 3% should be a base pay boost.