Base Salary Increase Demands at the Shunto Negotiations

The Japanese Federation of Textile, Garment, Chemical, Mercantile, and Allied Industry Workers’ Unions (Zensen) (membership: 580,000) announced its negotiation policy heading into the 2002 Shunto spring labor negotiations. Zensen will seek primarily to maintain the present salary structure and seek additional gains if possible. Although Zensen decided not to make a unified demand for base salary increases, it did include among the "additional gains" 500-1,000 yen base salary increases for "standard" workers (35 years old) in the textile and manufacturing sectors and for "standard" workers (30 years old) in the distribution and service sectors.

The Japan Federation of Steel Workers’ Unions (membership: 160,000), in view of the significant drop-off in the performances of the iron and steel corporations resulting from steep declines in steel prices, has decided to forego base salary increase demands. Instead, the Federation recommended its member unions to demand the signing of employments that commit employers to "make the greatest effort and to take full responsibility for maintaining employment over the next two years."

The Japan Railway Trade Unions Confederation (membership: 77,000) and the Japan Confederation of Railway Workers’ Unions (membership: 73,000), on the other hand, have decided to demand base salary increases of 1,000 and 1,500 yen respectively. The two union confederations hope that such demands will prevent the formation of a unilateral consensus among employers to freeze base salary increases.

Similarly, the Confederation of Japan Automobile Workers’ Unions will seek base salary increases to prevent deflation and to raise wages in the industry to keep them in line with industry productivity. The effects of the recession, however, have been felt even here. For example, although the Toyota Motor Workers’ Union has decided to demand a 7,500-yen (6500-yen raise to meet regular wage increase levels + 1,000 yen) salary increase, this demand will be the lowest in the union’s history, despite healthy performance by the company itself.

1US$≒\133 (February 2002)