Japan PM vows all-out efforts towards sustained pay hikes at May Day event

TOKYO - Japan’s Prime Minister Sanae Takaichi said on April 29 that her government will do its utmost to help ensure continued wage hikes as the head of the country’s umbrella group for labour unions underscored the need for increased pay amid inflation.

Ms Takaichi attended a May Day gathering in Tokyo’s Shibuya Ward – an event where workers advocate for their rights – making it the fourth consecutive year that a sitting Japanese prime minister has attended the event.

“We will do everything at our disposal to set conditions for (companies) to raise wages,” Ms Takaichi said at the gathering. “I ask for your support so we can see continued wage growth that outpaces inflation.”

Japanese companies have accepted demands from labour unions to raise wages amid the rising cost of living.

Labour unions under the Japanese Trade Union Confederation known as Rengo saw pay hikes of around 5 per cent on average during their annual negotiations with management this spring.

Still, Rengo chief Tomoko Yoshino said the momentum should accelerate. “More is needed for real wage growth to remain positive as a trend,” she said.

Rengo has around 6.78 million members and the Democratic Party for the People, an opposition party, has received support from the organisation.

Ms Yoshino noted that the tense situation in the Middle East has begun to affect its member labour unions’ negotiations with management.

Ms Takaichi’s attendance came at a time when surging crude oil prices and energy supply disruptions cast a shadow over resource-scarce Japan. A weak yen raises import costs and fuels inflation concerns.

Disagreements remain between Ms Takaichi’s Liberal Democratic Party and Rengo, including over the issue of whether to allow married couples to have different surnames. The Rengo chief was not invited to the ruling party’s convention in 2026. KYODO NEWS