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ECONOMY > Labor

Japan’s largest business lobby seeks 3% pay hike as “social demand”

  • January 16, 2018
  • , Kyodo News , 04:36 p.m.
  • English Press

TOKYO – Japan’s most powerful business lobby on Tuesday called on its member companies to implement a 3 percent pay hike ahead of annual management-labor wage talks, saying the increase is a “social demand.”

 

Following Prime Minister Shinzo Abe’s repeated calls for pay rises to spur consumption and beat deflation in the country, the Japan Business Federation, known as Keidanren, sought wage increases either through pay-scale hikes or by boosting bonuses and allowances.

 

Keidanren revealed its stance in an annual report which will be a guideline for businesses in the 2018 spring wage negotiations for the financial year starting April.

 

“We will contribute to (Japan’s) full exit from deflation and further expansion of a virtuous cycle in the country’s economy by making additional efforts to improve labor conditions,” the report said.

 

The Abe administration has requested pay increases for the fifth straight year in a bid to stimulate private consumption, a key driver of the Japanese economy.

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