Keidanren Calls for Wage Hikes Based on Reality


Tokyo, Jan. 21 (Jiji Press)--The Japan Business Federation, or Keidanren, on Tuesday urged member companies to consider wage hikes positively, but depending on their own circumstances, pointing to the need for them to depart from the practice of moving in lockstep with others.

Corporate earnings have been patchy, reflecting slowing growth of the global economy, the biggest Japanese group of employers said in a report compiled by its special committee on management and labor policy. The report will serve as Keidanren's guidelines for this year's "shunto" labor-management negotiations.

Pay scale hikes, which have been sought by the Japanese Trade Union Confederation, or Rengo, as a key measure to reward employees, "could be an option," the report said. But the report added that it is also realistic to carry out such increases based on age, duties and the results of performance assessments, sounding negative about uniform base wage hikes for all employees.

Industry-by-industry unified wage negotiations are increasingly unsuited to reality, it also said.

"I hope the management side will maintain the momentum for wage hikes," the committee's chairman, Tetsuji Ohashi, chairman of major construction machinery maker Komatsu Ltd. <6301>, told a news conference. But he added that it is becoming difficult to set uniform wage hike targets.

[Copyright The Jiji Press, Ltd.]

Jiji Press