61695    However, it was not labor's choice to bring on the current situation.

61696    If anything, where labor may have been to blame is their preoccupation with cooperating with management even during the times when the economic climate was such that they could have won substantial wage increases.

61697    As a result, pay hikes had always been restrained, thus failing to increase disposable income.

61698    While nominal wages have risen steadily, the increase has hardly been felt.

61699    That is why domestic demand has not been stimulated.

61700    Then what is the way out of this situation?

61701    Labor will have no other choice but to obtain wage increases that are closest to their target.

61702    After switching its demand from percentage-based increases to one based on amount from this year's spring offensive, Rengo's target is for 14,000 yen, including an annual pay raise of 5,600 yen.

61703    The wage increase received was 3.13 percent as opposed to the benchmark demand of 5 to 6 percent for the previous year.

61704    It was the lowest raise in the history of the spring offensive.

61705    The reason for the switch of the expression from percentage to amount was that if everyone received the same percentage increase, it would not reduce the wage disparities between the industries with a high basic pay and those with a low one.

61706    One of labor's objectives this year is to raise the basic pay level for the industries where it is low at present.

61707    But this collides head-on with Nikkeiren's argument about the ability of companies to increase wages.

61708    Many of the industries with low basic pay have less capacity to pay.

61709    In addition, if the industrial trade unions, which have a high basic pay and are the pacesetters for wage hikes, are contained, then it may lead to labor's indulgence towards employers.