Japan's unions win biggest wage hike since 1991 in 'stage change'

TOKYO -- Japan's largest labor confederation said Friday that its member unions won an average 5.28% increase in wages this year, the biggest raise since 1991, providing impetus for a possible interest rate hike by the Bank of Japan next week.

Every spring, unions and management hold talks, known as shunto, to set monthly wages ahead of the start of Japan's fiscal year in April. Negotiations at some of the country's biggest companies, including Toyota, Hitachi and Panasonic, concluded this week, with many fully meeting union demands. Nippon Steel exceeded demands, raising monthly wages by a record 35,000 yen ($237), or 14%.