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The last gasp of labor's dual strategy? Japan's 1997 wage-setting round

Japan's mainstream (co-operative) unions in the 1970s adopted a so-called dual strategy, by which they exercisewage restraint in order to protect jobs but also participate in economic policy making to help raiseworkers' realwages and living standards.The prolonged economic slump of the 1990s, however, brought the strategy into question as real incomes stagnated.This article scrutinizes the dual strategy, focusing on wage setting, through an examination of the 1997 shunt l wage-setting round. Although conditions in 1997were relatively favorable, the unions failed to make significant gains, and even allowed managers to weaken wage-setting structures that protected union influence. This case study and analysis suggest that the unions have failed to develop effective strategies either to improve living standards or to maintain worker and public support.