Japan's largest labor and management groups have kicked off their annual round of negotiations, with each side releasing a position paper. Basically the two sides agree that under present circumstances protecting jobs is more important than raising wages. That sounds reasonable enough, given that the unemployment rate has hit a record 5.5 percent, with 3.5 million people out of work.
How times have changed. In previous rounds, even in times of economic recession, labor's primary objective was to secure wage increases. Now, in an unprecedented policy reversal, labor has made job security its top priority, sidelining its usual demands for higher pay.
Employment is also the greatest concern of management in this year's "shunto" (spring labor offensive). Nikkeiren, the Federation of Employers Associations, says in its annual report that, in light of current economic and business conditions, labor and management should not waste time arguing over an "either or" choice between jobs and wages. "From the point of view of maintaining international cooperation," it says, "further wage increases are out of the question."