japanese unions are demanding the biggest wage increase in 25 years
Last updated on March 6th, 2023 at 04:25 am
A news from Japan, the land of the rising sun. In a wind of inflation and job cuts, Japanese unions are demanding a significant wage increase, the likes of which have not been seen in 25 years.
This news will push up the economy of the country Japan and bring about positive change for its people. Let’s take a closer look at this news to see what it is all about.
As surging prices squeeze household budgets across the country, major Japanese companies’ unions are demanding their highest pay raise in 25 years.
A biggest Wage Increase in Japan
As of Mar 1, union officials submitted their requests for wage increases, which resulted in a demand for an average increase of 4.49 per cent, or 13,338 yen (S$132), per month. Members of the confederation last requested increases of more than 4 percent in 1998, according to the report.
While Japan is facing higher food and fuel prices, the Bank of Japan has said wage increases are critical to its goal of achieving steady, demand-led inflation.
As part of wage negotiations between the confederation, Rengo, and the Japan Business Federation, both sides agree compensation should rise relatively sharply in the face of rising inflation. In its own terms, Rengo is asking for about 5 percent, the largest increase in 28 years.
A key criterion for determining the future course of the Bank of Japan’s ultra-loose monetary policy is the outcome of the wage hikes.