Both labor and management are hoping to achieve wage hikes exceeding inflation as this year’s shuntō spring wage talks have fully started in Japan, with large companies, many of which enjoy strong earnings, particularly positive about continuing to offer robust pay increases.
By contrast, small companies generally face severe financial conditions and are therefore struggling to keep increasing wages.
It is difficult for small companies to narrow the pay gap with large corporations at a time when prolonged inflation is driving up costs and passing the higher costs on to prices remains challenging.