Overview
- The 7 million-member confederation is seeking a fourth consecutive year of hefty raises to counter persistent inflation.
- The goal emphasizes base-pay increases above 3%, with a separate floor of at least 6% for smaller firms to narrow pay gaps.
- This year's talks produced an average 5.25% increase, the biggest in 34 years, yet real wages remained mostly negative.
- Mizuho Research's Saisuke Sakai projects average gains of roughly 4.5%–4.7% at Rengo member firms as exporters cut prices to absorb tariff costs.
- Severe labor shortages are expected to keep pressure on companies to lift pay, a dynamic seen as important for consumption and the Bank of Japan's policy path.