Japan Biz Leaders Positive about Continuing Wage Hikes

Tokyo, Jan. 6 (Jiji Press)–Business leaders in Japan made positive statements about continuing wage increases during a New Year event in Tokyo on Tuesday, with many hoping to achieve wage hikes at or above last year’s results in this year’s “shunto” spring wage negotiations. Kensuke Hosomi, president of convenience store chain operator FamilyMart Co., said, “We want to surpass last year’s level” in the upcoming shunto. Last year, the average wage increase rate at major Japanese companies was 5.39 pct, exceeding 5 pct for the second consecutive year, according to a tally by the Japan Business Federation, or Keidanren, the country’s biggest business lobby. Keita Ishii, president of trading house Itochu Corp., stressed the need to raise wage levels to secure human resources, saying, “We need to make Japan an ideal choice for foreign talent.” One of the key challenges in the upcoming shunto is to extend the trend of significant wage increases beyond large companies. “The (Japanese) economy will not be able to survive without small and midsize companies,” electronics giant Fujitsu Ltd. President Takahito Tokita said. The event was organized by Keidanren, the Japan Chamber of Commerce and Industry and the Japan Association of Corporate Executives, or Keizai Doyukai. “We will aim to further establish (the momentum for wage increases),” Keidanren Chairman Yoshinobu Tsutsui told a news conference on Tuesday. Ken Kobayashi, head of the Japan Chamber of Commerce and Industry, explained that the desire to raise wages is strong among small and midsize companies. He urged the government and the Bank of Japan to “defeat inflation.” Keizai Doyukai Chairman Akio Yamaguchi remarked, “If evolving artificial intelligence is combined with robots, high added value can be created.” He advocated for productivity improvements to drive wage increases and growth investment. END [Copyright The Jiji Press, Ltd.]