TOKYO - Major Japanese companies are finalizing substantial pay increases in annual wage talks, marking a fourth straight year of strong gains. Firms like Toyota Motor and Hitachi concluded negotiations this week amid persistent labor shortages.
Mazda Motor and Mitsubishi Motors settled early, with Mitsubishi granting a 5.1% raise-the largest since its founding and the quickest resolution in company history.
Rengo, Japan’s largest union group, will release initial results on March 23. Unions sought a 5.94% average hike, slightly below last year’s record 6.09% demand that achieved a 5.25% real increase-the highest in 34 years.
Despite momentum, economic risks loom. Surging oil prices driven by the Iran conflict threaten corporate profits and long-term wage sustainability.