TOKYO - Japanese companies agreed to raise wages by an average 5.01 percent in this year's spring wage negotiations, marking the third consecutive year of pay increases of over 5 percent, the country's largest labor union said Friday.
The Japanese Trade Union Confederation, also known as Rengo, said its final tally of wage negotiation results from over 5,300 member unions showed the average monthly pay hike stood at 16,400 yen ($102).
Consumer spending remains sluggish in Japan, with wage growth having lagged behind price increases until recently. Japan's real wages rose for the fourth straight month in April. But a surge in oil and raw material costs stemming from the Middle East conflict threatens to accelerate inflation.
The pace of wage growth slowed from the previous year's average increase of 5.25 percent.
"We accept the result as a step forward toward a society where pay raises are normal," said Akira Nidaira, an assistant general secretary at Rengo, at a press conference, adding that smaller firms did what they could.
Wages at small- and medium-sized companies increased by an average of 4.69 percent, or 12,866 yen, even though they still lagged behind the pace of increases at larger firms.
The figures are based on wage negotiation results from 5,368 unions as of Wednesday.
