Please try another search
EconomyJan 05, 2022 04:51AM ET
© Reuters. FILE PHOTO: Japanese Prime Minister Fumio Kishida speaks before the media at his official residence as an extraordinary Diet session was closed, in Tokyo, Japan December 21, 2021. Yoshikazu Tsuno/Pool via REUTERS
TOKYO (Reuters) – Japanese Prime Minister Fumio Kishida on Wednesday called on business lobbies and unions to work together to “boldly reverse” a downtrend in workers’ wages as the government seeks to achieve what it has called an era of “new capitalism”.
Japanese firms, long worried about losing customers and market share as the country grappled with deflation, have been wary about raising wages over the years. Instead, many have resorted to belt-tightening to cut costs, leaving employees with flat pay for decades.
Since he was elected in October, Kishida has urged Japanese firms, whose profits have recovered to pre-pandemic levels, to raise wages by 3% or more, aiming to achieve a cycle of growth and wealth distribution.
“We will squarely deal with wealth distribution towards the middle class. We will generate a virtuous cycle by distributing the fruit of growth, leading to the next growth,” Kishida told a New Year gathering of Rengo, the country’s main labour confederation.
“At the upcoming spring labour negotiations, I expect wage hikes suitable for an era of new capitalism to materialise.”
Kishida became the first prime minister in nine years to attend Rengo’s New Year event.
Earlier at a separate gathering, Kishida piled pressure on the country’s three business lobbies, including Japan’s largest Keidanren, to take an “aggressive stance” towards implementing wage hikes, Kyodo news agency reported.
Kishida said raising wages was “extremely important” as a strong recovery from the COVID-19 pandemic would require wealth distribution to the middle class, according to the news agency.
“Now is the time to shift the phase away from the contractionary cycle caused by deflation towards a virtuous cycle of growth and wealth distribution,” Kishida was quoted as saying.
The government for its part has stepped up support by offering tax breaks in an economic package rolled out in November to prod companies to raise wages.
Still, a hefty wage hike is seen as a tall order given that even top Japanese firms and their labour unions have agreed on annual wage hikes of just around 2% in recent years. Last year, leading Japanese firms offered the lowest wage increase in eight years as the pandemic hurt corporate profits.
Related Articles
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Note: This article have been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here
CELSIUS Assorted Flavors Official Variety Pack, Functional Essential Energy Drinks, 12 Fl Oz (Pack of 12)
$36.00 (as of June 30, 2024 21:12 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Super Mario Bros.™ Wonder - Nintendo Switch (US Version)
$51.93 (as of June 30, 2024 21:12 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Frito Lay Backyard Barbecue Mix Variety Pack, (Pack of 40)
$21.95 (as of June 30, 2024 21:12 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Occer 12x25 Compact Binoculars for Adults and Kids - Large Eyepiece Waterproof Binoculars for Bird Watching - High Powered Easy Focus Binoculars with Low Light Vision for Outdoor Hunting Travel
$30.59 (as of June 30, 2024 21:12 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
