The base monthly wage for workers at Japan's 17 major electronics appliance manufacturers is likely to increase by 500 yen starting April 1, the first time in three years that the pay hike has matched the year-earlier level, labor union sources said Saturday.
The leaders of the Japanese Electrical, Electronic & Information Union said they originally sought a 2,000 yen rise in base wages, 1,000 yen lower than the previous year, in their annual spring wage-raise negotiations.
The management side sought no rise in the base wage initially. Profitability at the companies is now improving compared with the previous year, but the nation's economic climate remains slack, company executives said.
Ahead of Wednesday's deadline, however, the two sides have effectively come to an agreement on a 500 yen rise. The increase is the same as the previous year, which saw the smallest rise in the post-war era.
Salary increases for almost all full-time corporate workers in Japan are divided into two components. One is a periodic increase reflecting the length of service and the other an increase in the base wage for the average worker.
The average worker for electronics makers is defined as a 35-year-old high school graduate with 17 years on the job.
Including a pay raise based on length of service, the average increase in monthly pay for the 17 firms' workers will remain below 7,000 yen, as it was a year earlier.