The following is the gist of the report of the “special committee on management-labor policy” released by Keidanren (Japan Business Federation) on Jan. 15:

— A 3% wage increase reflects society’s demand and expectation. [Member companies] should take more drastic steps to improve compensation, in order to contribute to the economy’s full exit from deflation and the further expansion of the virtuous economic cycle.

— The basic principle in wage increase is to raise annual income through a variety of methods, including pay scale increases, additional bonuses, and review of various allowances.

— There are concerns regarding reduced overtime pay as a result of the reduction of long working hours. Compensation for employees should be increased with the improvement of productivity.

— Take thorough measures to eliminate the irrational disparity in compensation for regular and non-regular workers.