Firms, Not Govt, Should Decide on Wage Hikes: Keidanren

Economy

Tokyo, Jan. 22 (Jiji Press)--The Japan Business Federation, or Keidanren, stressed Tuesday the importance of companies deciding on wage hikes by themselves in the upcoming annual "shunto" management-labor wage negotiations, not in response to requests from the government.

"It's important that companies decide on pay hikes after discussions between management and labor," Keidanren said in a report by its management-labor policy special committee, which will be referred to by member companies as guidelines in the 2019 shunto talks.

"In view of social expectations, wage hikes on an annual income basis by various methods and comprehensive improvement in treatment" will be required, the report said, calling on companies with brisk earnings to raise pay for their employees.

Speaking at a press conference, Keidanren Vice Chairman Yasumi Kudo rejected the view that the government is behind the labor side and back pay hikes.

"We take the request from Prime Minister Shinzo Abe as a message calling on us to work together to overcome deflation and create a virtuous economic cycle," said Kudo, chairman of major shipping firm Nippon Yusen K.K. <9101>.

[Copyright The Jiji Press, Ltd.]

Jiji Press