Labor Shortages, Pricing Constraints, and the Distribution of Gains: Trade Unions in the Trucking Industry

Abstract

This paper examines the role and future prospects of labor unions in addressing labor shortages in Japan’s trucking industry. Labor shortages have intensified in recent years, particularly highlighted by the 2024 problem, which reflects not only regulatory changes in working hours but also deeper structural constraints on labor supply. In response, the government has introduced a range of policies aimed at improving logistics sustainability, including the Logistics Efficiency Act, reforms to transaction practices, and measures to promote cost pass-through and efficiency.

While these policies have contributed to some improvements in pricing and operational efficiency, they remain insufficient in addressing the core issue of workers’ conditions. Even when prices rise and revenues increase, these gains do not automatically translate into higher wages or better working conditions. This is because wage determination depends on how revenues are distributed, not merely on market conditions. In highly competitive industries such as trucking, firm-level wage increases are constrained, which makes collective coordination essential. This paper argues that labor unions play a crucial role in linking pricing structures to wage outcomes. However, their effectiveness is currently limited by declining unionization, enterprise-based bargaining, and fragmented subcontracting structures. The paper concludes by highlighting the need to reconsider institutional frameworks for collective wage-setting and worker representation.