The main focus of this year’s spring labor movement, as it was last year, is whether we can achieve sustainable wage increases and extend this movement to small and medium-sized enterprises and non-regular employment. On March 13th, the day of intensive responses to the spring labor union, a series of high-level wage increases were reached, mainly at major companies. We have summarized the labor union’s perception of the situation up to the intensive response date, as well as the movement to spread the situation to small and medium-sized enterprises and non-regular employment.
What is the average wage increase for 45 unions at major companies?metal union
The Metal Workers’ Association, which is made up of labor unions in industries such as automobiles and electronics, held a press conference on March 13, the day for intensive responses to the spring labor union, and announced the average wage increases for 45 unions at major companies that it has compiled so far. announced that it was 14,877 yen, the highest ever since 2014.
Metalworkers’ Association Chairman Akihiro Kaneko
In order to turn the Japanese economy around, today’s answers alone will not change the course of the world. It is important that the wage increase spread to people working at non-union companies and non-regular workers. I would like to firmly support the union as negotiations continue.
Renpei Akira, Director-General of the Comprehensive Policy Promotion Bureau (attended the press conference)
The real critical moment is yet to come, and I believe that the stage will only change once Japan as a whole achieves a wage increase, with the wage increase spreading to include those working in small and medium-sized enterprises. I will continue to do my best to achieve wage increases.
Part-time employees also responded with higher wages than full-time employees
UA Zensen is an industry-specific labor union made up of approximately 2,200 unions in fields such as textile chemicals, distribution, and service industries, of which approximately 60% are part-time and other non-regular workers. On the night of the 13th, the office received reports of the conclusion of negotiations one after another, mainly from large companies. We received a series of responses from management that paid full wages or exceeded requirements, and there were also notable responses that the wage increase rate for part-time employees was higher than that for full-time employees.
Among these, ▼Drug store “Welcia Pharmacy” has raised its hourly wage by 88 yen, ▼Supermarket “Life” has raised its hourly wage by 76 yen, and ▼Furniture and daily necessities retailer “Nitori” has raised its hourly wage by 67 yen.
UA Zensen Chairman Akihiko Matsuura
Large companies alone cannot bring about major changes in society as a whole; wage increases at small and medium-sized enterprises are important. To move forward with this, it will be important to pass on appropriate prices, including personnel costs. We would like to correct the disparity between workers, large companies, and small and medium-sized enterprises, and increase wages for society as a whole.
Wage increase focuses on spreading to small and medium-sized enterprises and non-regular employment
2023 – Last year’s spring labor union resulted in the highest wage increase rate in 30 years, but real wages have remained negative for 22 consecutive months due to the impact of price increases, and personal consumption is also sluggish.
Will this year’s spring labor trade create an environment in which it is easy to pass on prices, leading to wage increases for small and medium-sized enterprises and non-regular employees, and will it create a virtuous cycle in which wages and prices rise stably due to increased consumption? The focus is on whether this can lead to a complete escape from deflation.
Appeal for wage increases through “irregular spring labor” strikes
On the 13th, the intensive response day, participants in the “Irregular Spring Struggle,” a joint movement of part-time and temporary workers demanding higher wages, began a strike at 15 companies where they work, demanding a significant wage increase.
The “Irregular Spring Labor” is an initiative that began last year in which part-time and temporary employees of companies without labor unions come together to demand wage increases from their respective workplaces. This year, more than 20 labor unions, which individuals can join, are demanding a uniform wage increase of 10% or more from 120 companies, and negotiations have been held between labor and management, but no one has responded to a sufficient wage increase. This means that there are many companies that do not have one.
Kotaro Aoki, co-chairman of the General Support Union, which is calling for the “Irregular Spring Labor”, said, “Large companies are said to be raising their wages early and in full, but it seems that the wave of wage increases has not spread to non-regular workers.Many non-regular workers are working in the workplace. There are many people in Japan who don’t have unions, so it’s important to have a framework in which even just one person can participate in raising wages.”
Prime Minister Kishida plans to support wage increases for small and medium-sized enterprises Government-Labor-Management Council
Furthermore, on the 13th, a “Government-Labor-Management Conference” was held between the government, business community, and labor community, and Prime Minister Kishida stated that it was important to extend the trend of wage increases to small and medium-sized enterprises, etc., and supported it. He expressed his intention to do everything in his power to create an environment in which people can do their best.
As a concrete measure, he explained that he would take strict action against large companies and others that demand unreasonably low transaction prices from subcontractors. The company also announced that the Fair Trade Commission will conduct an investigation to determine whether labor costs, which correspond to personnel costs, are being passed on to prices appropriately, and that if it is found to be inadequate, the company name will be announced by the end of March.
He also announced his intention to bring forward the goal of raising the minimum wage to 1,500 yen by the mid-2030s, and called for public-private collaboration to achieve sustainable wage increases that outpace price increases.
Government support package to support the growth of medium-sized companies
On the other hand, in order to achieve sustainable wage increases, the government is trying to support the growth of “medium-sized enterprises,” which are larger than small and medium-sized enterprises and provide more employment, through support packages such as subsidies and tax breaks. We have compiled the following.
Specifically, ▼ subsidies of up to 5 billion yen for large-scale investments such as factory maintenance, ▼ tax benefits that exceed those of large companies if they increase wages by 4% or more, and ▼ necessary subsidies for digitalization, etc. It includes support for matching with human resources.
The government aims to expand domestic investment and realize sustainable wage increases by supporting medium-sized companies that provide employment, especially in rural areas.