Keidanren Want Wage Hikes to Take Root across Economy

Tokyo, Sept. 2 (Jiji Press)–The Japan Business Federation, or Keidanren, is expected to call for the recent strong momentum of wage hikes to take root further across the economy during next year’s “shunto” spring labor-management negotiations, it was learned Wednesday. This policy is part of a draft outline of a Keidanren report that would serve as the management side’s guidelines for the 2027 shunto. The report will be compiled by the Committee on Management and Labor Policy of the biggest Japanese group of employers. The guidelines are also expected to emphasize the importance of spreading the wage hike momentum to smaller companies through measures including appropriate business transactions. The committee will begin substantive discussions on the 2027 shunto guidelines at a meeting to be held in the first half of this month. To realize an investment-driven economy, the report is likely to call for promoting wage hikes as an investment in people. With labor shortages becoming more acute, the guidelines are seen urging employers to expedite work style reforms on the premise of using artificial intelligence, emphasizing the need to maximize the added value generated by employees and utilize workforces more efficiently. Keidanren will continue to regard base-pay increases as the standard for shunto negotiations. The guidelines will likely say it is essential for smaller businesses to strengthen their medium- and long-term earning power for securing stable financial resources for wage increases. The report is also expected to state that efforts are required across the entire supply chains through appropriate cost pass-through. END [Copyright The Jiji Press, Ltd.]