Hiroshi Okuda, chairman of the Japan Federation of Employers Associations (Nikkeiren), indicated Thursday that companies may ask labor unions to accept pay cuts to prevent job losses in this year's wage negotiations.
"Personnel expenses are rising, while the surplus of labor is getting worse," Okuda said in a meeting in Tokyo between Nikkeiren and the Japanese Trade Union Confederation (Rengo), Japan's largest labor organization.
"I want both management and labor to look at the situation seriously when conducting negotiations," Okuda said.
The meeting was the first in a series of talks between labor and management.
According to Rengo officials, the meeting saw debate on a range of labor issues, including regular wage hikes and work-sharing programs.
Kiyoshi Sasamori, head of Rengo, told the meeting he wants management to understand the significance of the group's decision earlier this month to give up demands for a uniform pay rise for the first time and instead prioritize job security.
"The fact that we went that far for the first time is significant. We want management to understand it," he said.
The Rengo officials said they believe work-sharing programs would be an efficient way to improve labor market conditions. Nikkeiren officials welcomed the labor side's readiness to discuss the programs.
The Rengo officials also said they want member unions to decide on wage increase requests individually rather than waiting for a consensus.