Keidanren Calls for Prioritizing Jobs over Wage Increases

Economy

Tokyo, Jan. 19 (Jiji Press)--The Japan Business Federation, or Keidanren, on Tuesday urged member companies to put top priority on continuing operations and maintaining jobs if their finances deteriorate due to the coronavirus crisis.

"It is important to make pay decisions based on the realities of each company," the country's biggest employers' group said in a report, which will serve as guidelines for this year's "shunto" spring wage talks with labor unions.

Large companies' wage growth topped 2 pct last year for the seventh straight year as the government called for higher pay to support an economic recovery.

In the latest report, Keidanren sought to maintain momentum for wage increases. Pay scale hikes can be an option for profitable companies, it said.

But it remains uncertain whether companies will be able to raise wages amid the coronavirus crisis, analysts said.

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Jiji Press