Japan’s Workers Aim for Stronger Gains in 2025
Facing a cost-of-living crisis and persistent economic challenges, Japan’s largest labor union, Rengo, is setting ambitious goals for the 2025 spring labor union negotiations (shunto). Rengo Chairman Tomoko Yoshino has emphasized the need for substantial wage increases, citing the urgent need to restore workers’ livelihoods and competitiveness in the global market.
While last year saw a historic 5.1% wage hike, the highest in 33 years, measures to combat inflation still leave many workers feeling the pinch. “There are very few people who actually feel their lives have improved,” Yoshino stated in a recent interview.
Rengo is targeting a minimum wage increase of 5% or more for major corporations, with a base increase of 3% or more, and an even higher 6% or more for smaller and medium-sized enterprises (SMEs). Addressing the wage gap between large companies and SMEs is a primary concern for Yoshino. “It’s not going to be resolved so easily,” she acknowledged, stressing the need for government and business collaboration to improve the environment for these smaller enterprises.
The issue is particularly pressing as Japan struggles with a long-standing legacy of deflation and a global brain drain. Yoshino highlights the challenge of retaining talented young workers who increasingly seek better opportunities abroad. “Excellent human resources, especially young people, are moving overseas in search of better opportunities,” she said, warning, "If we don’t raise wages to a global level, we risk being left behind.”
Rengo’s strategy for the 2025 negotiations extends beyond individual wage gains. The focus will be on achieving stability in wages, the economy, and prices to foster consumer confidence. “If people don’t have expectations for the future, they won’t be able to spend much,” explained Yoshino.
Strengthening economic growth and securing a positive future for Japanese workers are the ultimate goals. The 2025 shunto promises to be a critical year as Japan navigates its economic landscape and aims to build a more equitable and sustainable future.