Foreign workers in Japan may see significant changes to both their wages and working conditions in 2025, as major labor organizations announce ambitious wage increase demands while business groups propose controversial reforms to working hour regulations. According to NHK, UA Zensen, the largest industrial labor union within the Japanese Trade Union Confederation (Rengo), has announced it will demand a 6% wage increase in next spring's wage negotiations, known as "shunto." For part-time workers, who make up a substantial portion of the union's membership, the organization is setting an even higher benchmark of 7%. UA Zensen represents workers across retail, textile, and service industries—sectors that employ many foreign residents in Japan. This wage demand comes amid ongoing concerns about inflation and the rising cost of living in Japan. The 6% figure represents a continuation of aggressive wage increase requests that have characterized recent years' negotiations, as unions attempt to ensure workers' salaries keep pace with price increases. For expat workers in these industries, successful negotiations could mean meaningful increases in take-home pay, though actual results will depend on individual company negotiations that typically conclude by March. However, while labor unions push for better compensation, Japan's most powerful business lobby is proposing changes that could significantly alter work-life balance protections. According to NHK, Keidanren (Japan Business Federation) is preparing to propose a "reconstruction of work style reform" that would allow companies to extend working hours for employees who request it, provided health safeguards are in place. The proposal emphasizes giving workers more flexibility in choosing their work arrangements. This proposal represents a potential shift away from the strict working hour limitations introduced in Japan's 2019 work style reforms, which capped overtime and aimed to address the country's notorious overwork culture. Keidanren's new stance suggests that businesses want more flexibility in how working hours are managed, arguing that some employees desire the option to work longer hours, possibly to increase earnings or meet project demands. For foreign workers, these parallel developments present both opportunities and concerns. The wage increase demands, if successful, would provide welcome financial relief as Japan continues to experience inflation. Many expats working in retail, hospitality, and service sectors—industries well-represented by UA Zensen—could directly benefit from these negotiations. Part-time workers, a category that includes many foreign residents balancing work with language study or family responsibilities, stand to gain even more if the 7% benchmark is achieved. However, the proposed work hour reforms warrant careful attention. While Keidanren frames the changes as offering flexibility and choice, critics worry that in Japan's hierarchical workplace culture, employees may face pressure to "voluntarily" request longer hours. Foreign workers, who may already feel vulnerable due to language barriers or visa status concerns, could be particularly susceptible to such pressure. The timing of these proposals is significant. Japan faces acute labor shortages across multiple sectors, making foreign workers increasingly essential to the economy. How these competing visions—higher wages versus extended work hours—are reconciled will shape the working conditions for both Japanese and foreign employees in the coming years. Expats should monitor how these discussions develop through early 2025. The spring wage negotiations typically conclude by mid-March, while Keidanren's reform proposals would require legislative changes and broader social consensus before implementation. Workers concerned about potential pressure to extend hours should familiarize themselves with their rights under current labor law and consider consulting with labor standards offices or support organizations if workplace issues arise. As Japan continues balancing worker protections with business competitiveness, foreign residents remain stakeholders in these crucial labor policy debates that will define their working lives in the country.