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JAPAN DATA: 2025 Pay Agreements Emerging, Some Below Union Demand Levels

JAPAN DATA
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A number of headlines have filtered out today on pledged wage rises from major Japanese firms for 2025. Some companies have met lofty demand, while others have come in a little below demands. See below for more details. 

  • This is a key watch point for the authorities and the BoJ, as it seeks to durably achieve the 2% inflation target. As noted yesterday, consumption spending has not been a strong point for the economy in recent months. Positive real wage growth is a key in terms of aiding the recovery in spending. Hence these developments will be an on-going watch point for markets.
  • Here are some of the key companies that have crossed so far today: "TOYOTA RESPONDS IN FULL TO UNION'S TOTAL WAGE HIKE DEMAND, COMPANY SAYS - [RTRS]"
  • "NEC AGREES TO UNION'S WAGE HIKE DEMAND FOR 2025 IN FULL - [RTRS]",
  • "NISSAN AGREES TO 16,500 YEN AVERAGE MONTHLY WAGE HIKE VS UNION DEMAND OF 18,000 YEN FOR 2025 - [RTRS]",
  • "MITSUBISHI ELECTRIC AGREES TO 15,000 YEN AVERAGE MONTHLY WAGE HIKE VS UNION DEMAND OF 17,000 YEN FOR 2025 - [RTRS]",
  • "NIPPON STEEL AGREES TO 12,000 YEN AVERAGE MONTHLY WAGE HIKE VS UNION DEMAND OF 15,000 YEN FOR 2025 - [RTRS]"
  • "HITACHI AGREES TO 17,000 YEN AVERAGE MONTHLY WAGE HIKE VS UNION DEMAND OF 17,000 YEN FOR 2025 - [RTRS]"
  • "PANASONIC AGREES TO 13,000 YEN AVERAGE MONTHLY WAGE HIKE VS UNION DEMAND OF 17,000 YEN FOR 2025 - [RTRS]"
  • The largest union, Rengo, is seeking an average hike of near 6.1%, after last year's 5.85% increase.
  • Rtrs adds: "Much of the focus on this year's "shunto" talks is whether there will also be strong pay gains at small and medium-sized firms which employ around 70% of Japan's workforce." See this link for more details.  
     
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A number of headlines have filtered out today on pledged wage rises from major Japanese firms for 2025. Some companies have met lofty demand, while others have come in a little below demands. See below for more details. 

  • This is a key watch point for the authorities and the BoJ, as it seeks to durably achieve the 2% inflation target. As noted yesterday, consumption spending has not been a strong point for the economy in recent months. Positive real wage growth is a key in terms of aiding the recovery in spending. Hence these developments will be an on-going watch point for markets.
  • Here are some of the key companies that have crossed so far today: "TOYOTA RESPONDS IN FULL TO UNION'S TOTAL WAGE HIKE DEMAND, COMPANY SAYS - [RTRS]"
  • "NEC AGREES TO UNION'S WAGE HIKE DEMAND FOR 2025 IN FULL - [RTRS]",
  • "NISSAN AGREES TO 16,500 YEN AVERAGE MONTHLY WAGE HIKE VS UNION DEMAND OF 18,000 YEN FOR 2025 - [RTRS]",
  • "MITSUBISHI ELECTRIC AGREES TO 15,000 YEN AVERAGE MONTHLY WAGE HIKE VS UNION DEMAND OF 17,000 YEN FOR 2025 - [RTRS]",
  • "NIPPON STEEL AGREES TO 12,000 YEN AVERAGE MONTHLY WAGE HIKE VS UNION DEMAND OF 15,000 YEN FOR 2025 - [RTRS]"
  • "HITACHI AGREES TO 17,000 YEN AVERAGE MONTHLY WAGE HIKE VS UNION DEMAND OF 17,000 YEN FOR 2025 - [RTRS]"
  • "PANASONIC AGREES TO 13,000 YEN AVERAGE MONTHLY WAGE HIKE VS UNION DEMAND OF 17,000 YEN FOR 2025 - [RTRS]"
  • The largest union, Rengo, is seeking an average hike of near 6.1%, after last year's 5.85% increase.
  • Rtrs adds: "Much of the focus on this year's "shunto" talks is whether there will also be strong pay gains at small and medium-sized firms which employ around 70% of Japan's workforce." See this link for more details.