Japan’s shuntō, or “spring wage offensive,” is an annual event where labor unions collectively bargain with management for wage increases and improved compensation.
This tradition dates back to 1955 when industry labor unions, realizing their strength in unity, began negotiating together in the spring.
Labor unions from various sectors, coordinated by the Japanese Trade Union Confederation (Rengō), present wage demands, focusing on both base pay increases (base-up) and annual wage increments.
The timing of these negotiations coincides with the fiscal year, which for many Japanese companies runs from April to March. By negotiating in February and March, unions aim to secure better labor conditions for the upcoming year. The shuntō is seen as the most important battle for labor unions each year, as securing wage increases directly impacts workers’ livelihoods.
For 2024, Rengō is demanding a base pay increase of “3% or more” and a combined wage increase of “5% or more.” This is a response to rising inflation, which has eroded real wages. As Japan faces high living costs, the outcome of these negotiations will be closely watched, particularly as unions push for wage growth to counter inflation’s effects on workers.
