Japan’s employers’ body supports wage increase
Tokura Masakazu, chairman of the Japan Business Federation (Keidanren), said this at a meeting with leaders of the main governing Liberal Democratic Party (LDP) recently.
This was the first time in three years that Keidanren and LDP had their regular face-to-face meeting to discuss wage hikes and other policies.
Masakazu said it is the management’s duty to share their profits with workers. He said he will strongly encourage executives to act to help bring about a virtuous cycle of growth and distribution of wealth.
On its part, the government will promote private-sector investment in growth areas, like digital and green innovations, said LDP Secretary-General Motegi Toshimitsu. He said support would come through budgetary and tax measures, as well as regulatory reforms.
Toshimitsu said he hoped such moves would yield returns over time, benefiting consumers and spurring further investments, according to NHK.
Prime minister Fumio Kishida has, on several occasions recently, been urging businesses whose profits have recovered to pre-pandemic levels to raise wages by 3% or more in order to realise his aim to achieve a cycle of growth and wealth distribution.
This comes ahead of the wage negotiations typically held between March and April.