Japan Govt Calls for Pay Hikes Reflecting Rising Prices

Economy Politics

Tokyo, Oct. 4 (Jiji Press)--The Japanese government Tuesday called for the realization of wage hikes commensurate with inflation in the "shunto" labor-management wage negotiations next spring.

Ahead of the compilation of a comprehensive economic package this month, the government picked key items for the package at a meeting of its panel to realize a "new form of capitalism," chaired by Prime Minister Fumio Kishida.

"I want labor and management to hold negotiations toward a goal of realizing wage hikes that can cover rising prices, while taking into account each company's situation," Kishida told the meeting held at the prime minister's office.

In order to create an environment allowing smaller companies to pass on higher costs to their product and service prices appropriately and raise wages, the panel released a plan to disclose the names of companies that repeatedly and unfairly refuse price hikes by suppliers and subcontractors.

It was also decided that the government will use labor standards inspection offices to make sure that companies abide by the principle of equal pay for equal work, as part of efforts to improve employment conditions for nonregular workers.

[Copyright The Jiji Press, Ltd.]

Jiji Press