Japan's major labor unions are preparing for the 2025 spring wage negotiations (shunto) with unprecedented demands, signaling a potential shift in the country's traditionally conservative approach to salary increases. Foreign workers employed in Japan's manufacturing and industrial sectors should pay close attention, as these negotiations could significantly impact compensation packages across multiple industries. According to NHK, JAM, the labor union representing workers at small and medium-sized enterprises in the machinery and metal industries, has announced plans to request monthly wage increases of at least 21,500 yen for the upcoming spring negotiations. This represents the highest demand in the organization's history and reflects growing concerns about the widening wage gap between large corporations and smaller companies. Separately, Kikan Roren, the federation representing workers in steel, shipbuilding, and related heavy industries, has proposed demanding a base salary increase equivalent to 15,000 yen per month. This matches their record-high request from the current year, demonstrating sustained pressure for meaningful wage growth in response to persistent inflation. The aggressive wage demands come as Japan continues to grapple with rising living costs that have eroded purchasing power for workers across all sectors. While Japan historically experienced minimal inflation for decades, recent years have seen prices climb steadily, particularly for food, energy, and imported goods. These increases have hit foreign residents especially hard, as many face additional costs related to international money transfers, travel to home countries, and specialized food products. For expats working in Japan, these union negotiations carry significant implications even if they are not union members themselves. Spring wage negotiations traditionally set benchmarks that influence salary decisions across industries and company sizes throughout Japan. When major unions secure substantial increases, non-unionized companies often follow suit to remain competitive in attracting and retaining talent. The emphasis on closing the wage gap between large corporations and small-to-medium enterprises is particularly noteworthy. JAM's historically high demand specifically addresses concerns that workers at smaller companies have not benefited equally from recent wage increases. Many foreign professionals in Japan work for SMEs, particularly in regional areas or specialized technical fields, making this focus on wage equity potentially beneficial for a significant portion of the expat workforce. However, it's important to note that union demands do not automatically translate into actual wage increases. The spring negotiations involve extended discussions between labor and management, with final agreements typically reached between March and April. The actual increases granted often fall short of initial demands, though the gap has narrowed in recent years as labor shortages have strengthened workers' bargaining positions. Foreign workers should also understand that wage increase mechanisms in Japan differ from many Western countries. Base salary increases (base-up or "bea") represent permanent additions to monthly salaries, while annual increments reflect seniority-based raises. The union demands focus on base salary increases, which provide more substantial long-term benefits than one-time bonuses. For expats employed at companies without union representation, now may be an opportune time to discuss compensation with employers. The broader push for wage increases creates a favorable environment for salary negotiations, particularly for workers with specialized skills or in industries facing talent shortages. As Japan's labor market continues to tighten due to demographic challenges, the balance of power between employers and employees is gradually shifting. The record-high wage demands for 2025 reflect this changing dynamic and suggest that foreign workers in Japan may see more favorable compensation trends in the coming years, provided economic conditions support sustained wage growth across sectors.