THE JAPAN NEWS
 

The Yomiuri Shimbun


Major electronics manufacturers, including Hitachi, Ltd. and Mitsubishi Electric Corp., are in the final stage of their adjustments for the proposal of a monthly basic pay hike of at least ¥1,500 in response to labor unions’ demands for ¥3,000 in this year’s shunto spring wage hike negotiations.
Labor unions are going to further negotiate with management, aiming to ensure the increase reaches the ¥2,000 range.

Once the amount is finalized, it will mean there has been a basic pay hike for three consecutive years. Such a result will have a large ripple effect on the industry, as labor unions at about 160 member companies of the Japanese Electrical Electronic and Information Union will start their negotiations by using the results of those major companies as a benchmark.

Shunto talks have usually been led by six major firms — Hitachi, Mitsubishi, Fujitsu Ltd., NEC Corp., Panasonic Corp. and Toshiba Corp. Toshiba, which is in the middle of restructuring its management, is not involved in this year’s industry-wide negotiations.

In the wake of Monday’s labor-management negotiations, it is likely the workforce will secure at least a ¥1,500 basic pay hike. This is expected to increase the momentum of the trend toward an increase.

 

Due to such factors as an economic slowdown in emerging countries, management has taken a cautious stance toward the basic pay hike as it would increase the burden of labor costs in the future. Behind the decision to accept the ¥1,500 basic pay hike is likely not only a desire to boost workers’ morale, but also corporations’ awareness of their social responsibility, observers said.

To help the economy overcome deflation, it is essential to realize a high basic pay hike and spread the trend to a wide range of industries.
If major electronics companies throw cold water on the current positive mood about the basic pay hike, it would have a negative impact on the entire Japanese economy. Management believes that an amount half as much as the initial demand would be a good compromise for both sides.

Labor, on the other hand, aims at realizing the ¥2,000 hike, but they have to deal with the differences in business performance between companies. While Hitachi and Mitsubishi are enjoying favorable results, Fujitsu and NEC are not doing so well. The major focus from now will be whether labor unions at those companies take concerted action to obtain the same hike.

All company managements plan to release their decisions on March 16.