Kishida Calls for Pay Hike of Over 3 Pct
Tokyo, Nov. 26 (Jiji Press)--Japanese Prime Minister Fumio Kishida expressed hope Friday that companies will agree to increase wages by over 3 pct in the "shunto" labor-management wage negotiations next spring.
"I want companies whose earnings have returned to levels before the novel coronavirus pandemic to realize a wage increase of over 3 pct," Kishida said in a "new capitalism" meeting at the prime minister's office.
With the pace of wage growth in Japan slowing in recent years, Kishida aims to realize his signature policy of creating a virtuous circle of economic growth and wealth redistribution by presenting a specific pay hike target, pundits said.
This is the first time for the government to show such a target since the administration of then Prime Minister Shinzo Abe requested 3 pct hike deals in the 2018 shunto.
Still, Kishida refrained from seeking a uniform pay increase and only expressed "hope" for higher wages in view of widened income gaps between industries amid the coronavirus pandemic.
[Copyright The Jiji Press, Ltd.]