Japan’s largest labor union chief is calling for Prime Minister Shigeru Ishiba’s government to accelerate efforts to boost wages, especially for workers at small firms, as they seek to achieve stronger results for next year’s pay negotiations.

"We want the government to create an environment that leads to pay gains,” Tomoko Yoshino, the chair of Rengo, said in an interview. The head of Japan’s largest trade union federation said Tuesday a key law should be revised to help small firms pass on costs, and subsidies should be boosted to help them address severe labor shortages.

Yoshino’s comments come as unions gear up for next spring’s pay negotiations — results that are also closely watched by the central bank. The Bank of Japan raised interest rates for the first time in 17 years in March a matter of days after the initial results of Rengo pay deals for this year pointed to the biggest gain in more than three decades.