Every March, management of major Japanese firms meet with unions for wage talks across industries that set the tone for employees’ pay in the new fiscal year.
The precedent set at the shuntō spring wage talks also influences wages at smaller firms that employ seven out of 10 workers.
The outcome will have a huge influence on how soon the Bank of Japan (BOJ) can end ultralow interest rates. Steady wage hikes are crucial to kick-starting domestic demand and keeping inflation sustainably around its 2% target.
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