Japan’s Largest Union Wants 2% Wage Increase

Japan’s largest labor union decided Tuesday to seek a 2 percent or greater basic pay raise in annual wage talks starting early next year, a higher goal than set for this year.

The Japanese Trade Union Confederation, known as Rengo, decided at a meeting in Tokyo to press employers to increase the pay scale, in addition to the automatic rise in wages based on seniority.

In this year’s wage talks ended last spring, Rengo successfully sought a 1 percent or more pay-scale rise.

Rengo believes employers ought to raise wages again to enable workers to maintain their standard of living following the consumption tax hike in April to 8 percent from 5 percent.

Prime Minister Shinzo Abe has urged business leaders to raise wages to help the government attempt to lift the Japanese economy out of chronic deflation.

The Bank of Japan has continued its aggressive monetary easing, flooding the economy with money while aiming to raise the domestic inflation rate to 2 percent.

via Mainihci

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza