Japan's rising tide of wage hikes lifts pay at small manufacturers

Labor unions win record increases, as focus turns to sustaining raises

Japan's small and midsize manufacturers face pressure to raise wages even if business performance is poor. © Reuters

TAMAKI KYOZUKA, Nikkei staff writer

April 3, 2024 02:49 JST

TOKYO -- Workers at Japan's small and midsize manufacturers won wage increases averaging 4.12% this year, the highest ever, as the ripple effect of wage hikes topping 5% at large companies nationwide spreads to smaller ones.

The Japanese Association of Metal, Machinery, and Manufacturing Workers (JAM) on Tuesday announced the results of 2024 spring labor negotiations for enterprises with fewer than 300 union members. The 4.12% increase was up 0.64 percentage point from last year.