Japan’s major business lobby urges firms to raise workers’ pay
The Japan Business Federation has reiterated its desire for member companies to raise workers’ pay, in line with Prime Minister Fumio Kishida’s ideal of a “new capitalism”.
The business lobby, known otherwise as Keidanren, highlighted in a special committee report that firms that have seen their performances recover from the impact of the pandemic should conduct “pay increases appropriate for the initiation of new capitalism”, reports The Japan Times.
However, Keidanren did not adopt a specific target of pay hikes that member firms should adopt, taking into account the varying pace of earnings recovery which will differ from company to company.
The special report will serve as a guideline for the upcoming wage negotiations set to happen later this year.
“The labour and management sides will be deciding [on pay increases] while checking their company’s ability to pay and other conditions,” said Tetsuji Ohashi, Vice-Chairman of Keidanren, at a press conference.
Ohashi added that there will be “no across-the-board pay increase,” noting that “industries in tough situations should prioritise efforts to continue operations and maintain jobs”.