Japan's steel industry demands record wage hike

This demand represents approximately a 10% rise in base salaries, marking the largest request on record. Negotiations between labor unions and management are underway, with major companies expected to present their proposals on March 13, followed by smaller firms later in the year.

Policymakers and central bankers emphasize the importance of sustainable wage and price increases as a prerequisite for the Bank of Japan to consider ending negative interest rates.

Last year, major Japanese firms offered the largest pay hikes in three decades, responding to labor shortages and rising living costs.

This year, Japan's largest trade union federation, Reno, is seeking wage hikes of at least 5%. Japan's Nippon Steel union's wage demand reflects the need to attract more workers and improve working conditions in a strong steel market, union president Naomichi Kono said. 

Nippon Steel and other steelmakers are members of the Japan Federation of Basic Industrial Workers Union, which includes various sectors such as shipbuilding, heavy machinery, metal processing, aviation, and space industries. representing about 270,000 workers.