Labor unions consisting of Toyota Motor Corp., Panasonic Corp., and Hitachi Ltd., request half the minimum wage hike in 2016.

Bloomberg News has reported the announcement of the Japan Council of Metalworkers' Unions that its members want increases of 3,000 yen or $24 in monthly base pay. In the previous year, the group said 53 of its company unions would seek for at least 6,000 yen increase.

With lower minimum wage, reflating the economy will be more difficult for the government after the nation went into its second recession under Prime Minister Shinzo Abe's lead starting 2012. Bank of Japan Governor Haruhiko Kuroda and the government stressed the importance of higher salaries in reviving the economy, which has undergone seven recessions in a span of 20 years.

In its policy plan, the union council said they are still half-way from recovering in consumer spending, after deflation and making a virtuous economic cycle. Japan Council of Metalworkers' Union has 2 million workers in the automotive, electric, and technology industry.

Meanwhile, according to a report from Nikkei, the Confederation of Japan Automobile Workers' Union and the Japanese Electrical Electronic & Information Union will come up with the final decision on the amount of minimum wage they would demand for January 2016. Both these unions are very influential in the labor negotiations. The groups are also seeking 3,000 yen levels, just like the Japan Council of Metalworkers' Union.

In another note, the International Business Times has reported that Japan is planning to increase its minimum wage by 3 percent every year starting next year to stimulate consumer demand. Prime Minister Abe in a statement regarding the issue said, "We need to ensure continuous economic growth supported by rising wages and the minimum wage must be included in this process."

According to Japan's labor ministry, regular workers' base pay, without bonuses and overtime, increased almost 1 percent every month until September in 2015.