Japan’s Labor Union Pay Demands Show Firm Momentum Ahead of BOJ

Japan’s largest labor union groups will ask employers for wage increases largely in line with their requests a year ago, signaling sustained momentum as the Bank of Japan monitors pay trends ahead of a policy meeting later this month.

The Japanese Trade Union Confederation, known as Rengo, said Thursday that its member unions are demanding an average wage increase of 5.94% this year, not far off the 6.09% request made a year ago. Unions representing smaller firms are seeking a 6.64% raise, the largest since at least 1994. Last year’s request was 6.57%.