Japan’s Labor Unions Win Big Pay Gains That May Alter BOJ’s Path
- Strong wages needed for BOJ to pare back ultra-easing policy
- PM Kishida has called for salary increases to beat inflation
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Japan’s main labor unions won their biggest wage hike in decades amid historic levels of inflation, in results that could have implications for the Bank of Japan’s policy path.
Following annual wage negotiations, key unions and their employers reached a preliminary agreement to raise overall wages by 3.8% — the most since 1993, and noticeably more than the previous year’s final tally of 2.07%. Base wages, which have a greater impact on household spending power, will be increasing 2.33%, the union group said Friday.