As we approach wage negotiations in Japan (the government and the BOJ want to see pay hikes), concerns expressed from businesses
This is via the Nikkei:
Japanese corporations ... many are hesitant to expand their entire pay scale through base pay hikes as they did the last two years
"Wage hikes will be a large driving force in boosting consumption," Sadayuki Sakakibara, head of the Japan Business Federation, told reporters Tuesday. But the head of Japan's top business lobby stressed that the business community will meet government requests for raises on an annual basis, including through higher bonuses, rather than adopt a higher pay scale that will affect personnel expenses for the long term.
Prime Minister Abe has called on corporate Japan to hike wages for the third straight year. Private-sector members of the government's Council on Economic and Fiscal Policy say a roughly 3% annual raise is necessary to achieve the government's 600 trillion yen ($4.99 trillion) gross domestic product target by 2020.
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Shuntō, are the annual wage negotiations between the enterprise unions and employers
- Thousands of unions conduct the negotiations simultaneously
- Starts at the beginning of March
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Government and BOJ want wages hikes in order to boost household consumption, which in tunr should boost economic growth.
