Metal Factory Workers in Japan Demand Wage Increase, Breaking Record

International

Jakarta, CNBC Indonesia – Japan Metal Industry Workers Union (Japan Council of Metalworkers’ Unions/ JCM) is demanding an increase in monthly basic salary of 10 thousand yen or (Rp. 1 million) or more starting next year. JCM’s decision was taken last Wednesday, following significant salary increases at a number of large companies in Japan.

JCM’s latest demands are the highest in the last 25 years. The previous highest amount occurred in 1998, when the basic salary was increased by 7,000 yen.

JCM plans to bring the salary increase proposal to discussions with management. The second meeting is scheduled to be held in March 2024, quoted Reuters, Thursday (7/12/2023).

This proposal, according to Reuters notes, is comparable to the 2022 request of 6,000 yen. This also includes the 3,000 yen increase made over the seven years until last year.

For information, JCM represents two million workers in Japan. They work for local giants such as Toyota Motor, Panasonic and Nippon Steel.

Previously, the largest trade union conference in Japan, Rengo, asked for a minimum wage increase of 5%. The proposal includes a basic salary increase of 3%.

Rengo’s demands were joined by JCM and other union members. Reuters reports for small companies employing 7 out of 10 workers are struggling to make ends meet to be able to raise required salaries.

In Japan itself, wages have been almost frozen since the 1990s. The background is when the country’s asset bubble burst, starting the era of deflation.

(nb)