The major unions presented a monthly pay hike offer of 4,500 yen to management representatives today as part of Japan's annual spring labor-management wage negotiations.

Corporate responses are due March 18, and it's not at all clear the unions will like them. Management at NEC, Hitachi Panasonic and others are seeking pay cuts, with Hitachi's top personnel affairs officer saying "talks on whether annual pay hikes should continue are necessary."

NEC is proposing cuts in overtime pay and Toshiba plans to propose a temporary wage reductions as well, reports said.