Shunto began in the 1940s and by the mid-1950s was a set feature in industrial relations. Boosted by the militancy of the workers who brought the cities of Japan to a halt every spring, it was key to boosting the comparatively low wages of the 1940s and to improving conditions and other benefits. The Trade Union Confederation, Rengo[?], customarily set a specific target, "base-up", for the annual wage increases to aid the collective bargaining. Negotiations for the enterprise unions tended to begin after the bigger unions had secured their own deals, so they could push for their own company to match the improvements, leading to across the economy wage increases.
Since Japan has been in recession and deflation, with union membership falling, the value of the shunto and the automatic wage increases associated with it have come under threat. The major unions in steel, electronics and the automotive industry have been forced to restrict their demands and even accept zero offers from the employers. The concern has become to protect existing pay structures and jobs. With greater pressure on the workforce the rise in karoshi and karo-jisatsu are worrying trends.
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