RENGO Holds Meeting with Keidanren

Jan. 30, 2026

On January 27, 2026, RENGO (Japanese Trade Union Confederation) and Keidanren (Japan Business Federation) held a meeting in Tokyo to exchange views on key issues concerning the 2026 spring labour–management negotiations.

At the outset, Keidanren Chairman Tsutsui noted that, against the backdrop of rising prices and an increasingly severe labour shortage, social interest in and the necessity of wage increases have reached unprecedented levels. He explained that, as labour and management have worked together to share a deep understanding of the importance of wage increases as an “investment in people,” a strong momentum for wage growth has taken shape: 2023 marked the “starting point,” 2024 saw “acceleration,” and by 2025 the sense of “establishment” had become tangible. He emphasized that Keidanren is determined this year to further lock in this momentum and to fulfill its social responsibility by playing a leading role in this effort.

Reflecting these views, the “2026 Keidanren Labor–Management Policy Special Committee Report” positions the consideration of base pay increases as the “standard practice in wage negotiations” and calls on companies to respond proactively. Chairman Tsutsui stressed that ensuring the sustainability of wage increases requires steady pay growth among small- and medium-sized enterprises, which employ roughly 70% of the workforce. In addition to productivity improvements, appropriate price pass-through, and support from the national and local governments, he underscored the importance of creating a social environment in which the ideas that “wages should continue to rise” and that “appropriate price pass-through and higher selling prices are acceptable” become firmly established social norms. He added that Keidanren and RENGO largely share the same understanding of the challenges and direction ahead, and expressed his hope to work together in close cooperation toward the further establishment of momentum for wage growth.

RENGO President Yoshino welcomed the report’s clear positioning of wage increases as an “investment in people” and its designation of base pay increases as the standard in wage negotiations, stating that there is little discrepancy between labour and management in their fundamental recognition of the need to establish wage growth momentum. She emphasized the importance of making “No More Deflation Mindset” a shared language between labour and management, and of establishing a “wage increase norm” that sustains wage hikes of 5% or more, accompanied by real wage growth.

Citing the achievement of wage increases exceeding 5% for two consecutive years, she argued that achieving the same for a third year is a natural expectation, and that the benefits must extend not only to large enterprises but also to small- and micro-sized businesses. To that end, she stressed that fair transactions and appropriate price pass-through are indispensable. She also highlighted the further promotion of active roles for women in society, stating that the introduction of a selective separate surname system for married couples is an important human rights issue, and expressed her intention to work in solidarity toward its early realization.

During the exchange of views, RENGO raised issues including labour shortages, fair distribution of added value, appropriate price pass-through, increases in minimum wages, the active participation of diverse human resources, realization of the selective separate surname system, and the importance of union organization. Keidanren, for its part, expressed views on investment in human capital with consideration for labour’s share of income, corporate value creation, productivity enhancement, sustainable wage increases at regional and small enterprises, correction of gender disparities, labour mobility and reskilling, and more flexibility in working-hour regulations.

In her concluding remarks, President Yoshino stated that this year represents a critical turning point for firmly establishing wage increases, and that RENGO will pursue negotiations with a strong focus on results, aiming to achieve wage increases in the 5% range even among small- and medium-sized unions. Chairman Tsutsui reiterated that base pay increases have been a key driver of wage growth momentum, and noted that stable price increases are essential to improving real wages. He added that labour and management should continue to deepen cooperation on medium- to long-term challenges, after which the meeting was brought to a close.

As the 2026 spring labour–management negotiations approach this decisive phase, it is encouraging to see labour and management share the view that wage increases are not merely a cost, but an “investment in people” essential for sustainable growth, and that they sit at the negotiating table facing the same direction.

Labour unions have set a third consecutive year of wage increases exceeding 5% as a natural goal, while placing the highest priority on ensuring a clear and sustained rise in real wages. Overcoming rising prices and securing wage levels that allow working people to tangibly feel improvements in their standard of living will be the first step toward revitalizing consumption and setting the economy on a virtuous cycle.

Management, too, has demonstrated a more forward-looking stance by positioning consideration of base pay increases as the standard in negotiations. With a shared recognition that investment in human capital is the source of corporate competitiveness, business leaders are expected to demonstrate determination and leadership in distributing added value across the entire supply chain, including small- and medium-sized enterprises.

The role of government in supporting this labour-management challenge is also critically important. Sustainable wage growth can be achieved if policies such as legal frameworks promoting appropriate price pass-through and support for labour-saving investment function as a strong tailwind. Now is the time for the public and private sectors to work together and devote their full efforts to securing real income growth.

We hope that labour and management will continue to pool their wisdom and, based on mutual trust, deliver tangible outcomes that embody “future-oriented co-creation.”

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