Japanese Retail Giant Aeon Considers 7% Part-Time Wage Increase Next Year... "Compared to Spring Labor Struggle"

AEON, Japan's largest retailer, announced that it is considering raising the hourly wages of part-time workers by an average of 7% for the second consecutive year. This move is seen as a proactive wage increase amid soaring inflation and minimal wage hikes, with major Japanese corporate labor unions expected to engage in large-scale spring wage negotiations (Chuntu) next year.

According to the Nihon Keizai (Nikkei) newspaper on the 30th, AEON is reviewing a 7% increase in the average hourly wage for part-time workers next year. If implemented, the current average hourly wage of 1,170 yen (approximately 10,930 KRW) would rise by 82 yen to 1,252 yen. AEON had already raised part-time workers' hourly wages by 7% this year, so if the increase goes through, it would mark a 7% rise for two consecutive years.

The wage increase will apply to about 150 companies within the group, including supermarkets and drugstores. While AEON Group's overall labor costs are expected to rise by approximately 40 billion yen due to the wage increase for part-time workers, AEON plans to offset the cost increase through digitalization and efficient workforce allocation. The number of AEON's part-time workers has increased by 20,000 from the previous year to 420,000, accounting for about 2% of all non-regular workers in Japan.

AEON's proposal for a two-year consecutive wage increase for part-time workers is analyzed as a preemptive measure to respond to next spring's Chuntu negotiations. In Japan, with high inflation causing real wages to barely increase, labor unions are demanding significant wage hikes. Nikkei reported, "Given AEON's strong influence in the part-time sector, the movement to raise wages for non-regular workers could spread broadly in next year's spring wage negotiations."