Labor unions of Japan's three mega banks have set their highest demand for base wage increases in response to rising prices and strong performance, with Sumitomo Mitsui seeking over a 10% increase.
Labor unions representing Japan's three mega banks—Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho—have announced plans to demand record-high base wage increases during the Spring Labor Offensive for the fiscal year 2026. Sumitomo Mitsui’s union is particularly pushing for a base wage increase of 4%, with overall wage demands, including bonuses, exceeding 10%. This push comes as a response to rising inflation and the banks' robust financial performances, highlighting a competitive landscape in attracting talent.
The unions have finalized their proposals ahead of a presentation to management in March, aiming for the possibility of a fourth consecutive year of agreements if negotiations proceed successfully. Last year, the unions received a full response from the banks, indicating a trend of collaboration despite the pressure of rising costs. The performance-based bonuses, influenced by the banks' financial results, will be confirmed after the announcements for the fiscal year ending in March 2026.
With predictions of unprecedented net profits exceeding 2 trillion yen, the labor unions are leveraging their position during this labor offensive. The demands reflect both the necessity of addressing increased living costs for employees and an acknowledgment of the banks' success amidst a competitive talent market, signaling potential shifts in labor relations in Japan’s financial sector.
