Tokyo: The Japanese Trade Union Confederation, or Rengo, is making arrangements to demand a pay hike of around 5 pct in next year’s “shunto” labor-management negotiations, sources said Tuesday.

The envisioned target for pay-scale and regular salary growth will be lifted from around 4 pct set in the annual negotiations since 2016, given that households are bearing heavier burdens due to soaring prices.

Specifically, Rengo, the umbrella body of labor unions across Japan, plans to demand a pay-scale increase of around 3 pct, up from around 2 pct it sought in the seven years to 2022, on the assumption that regular wages will be raised 2 pct, according to the sources.

Rengo will be seeking a pay-scale hike for the 10th consecutive year.

Rengo will formalize the pay hike target at a central committee meeting on Dec. 1 after adopting it as a basic concept at an executive meeting to be held on Thursday.

JIJI Press