Keidanren to Urge Firms to Raise Pay Scales in 2023 Shunto Talks

Economy

Tokyo, Nov. 7 (Jiji Press)--The Japan Business Federation, or Keidanren, will ask member companies to raise pay, especially pay scales, in next year's "shunto" spring labor-management wage talks, Keidanren Chairman Masakazu Tokura said Monday.

"It's important that companies raise wages in view of higher prices. We want to ask our members to consider mainly raising pay scales," Keidanren Chairman Masakazu Tokura told a press conference after draft shunto guidelines were broadly adopted at a meeting of the chairman and vice chairs of the leading employers' group in the country. Finalized guidelines will be made public early next year.

Noting that actions to cope with rising prices are socially required, the draft guidelines hammered out the policy of asking member companies to "respond positively to maintain and boost the momentum of pay increases."

In his meeting with Tokura the same day, industry minister Yasutoshi Nishimura called for "bold and drastic decisions" on pay hikes in the 2023 shunto negotiations.

But with the pace of recovery from the coronavirus crisis varying by company and industry sector, it remains unclear to what extent pay-scale hikes become reality.

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Jiji Press