Feb 19 • 08:30 UTC 🇯🇵 Japan Asahi Shimbun (JP)

Large-scale restructuring shaken electric major: What is the impact on this year's spring labor offensive responses...

Japan's leading electric manufacturers are encountering challenges in their annual spring labor negotiations amidst pressures from inflation and a backdrop of significant employee layoffs.

The annual spring labor negotiations of Japan's leading electric manufacturers have commenced, with labor unions demanding a significant wage increase in response to rising living costs and the need to secure talent. The unions have submitted a request for a base wage increase of 18,000 yen per month, which is the highest since the current request method was established in 1998, surpassing last year's figure by 1,000 yen. On March 19, union head Miyuki Hazawa presented the demands to company official Shin Takimoto, who emphasized the importance of investing in personnel to enhance motivation and contribute to the company's growth, indicating a broader discussion is necessary given the circumstances.

Despite these optimistic demands, the reality in the electric industry is marred by increasing layoffs, particularly among older employees, which reflects a strategic shift towards a younger workforce in anticipation of changing business structures. According to Tokyo Shoko Research, in 2025, the highest number of early retirement offerings among listed companies will come from the electric machinery sector, comprising 18 firms, which is five more than the previous year, showing a sharp rise in personnel restructuring in response to financial pressures. This juxtaposition of labor demands and layoffs marks a critical moment in the industry.

The traditional practice of unified negotiations among major labor unions in the electric sector has led to this significant wage request, as unions work to present a united front against the backdrop of restructuring and economic challenges. As negotiations continue over the coming weeks, the response from companies is anticipated to reflect the ongoing conflict between maintaining employee morale through wage increases and the necessity of financial restructuring to remain competitive.

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