![]() ![]() Incumbent premier Fumio Kishida wants to change this under his flagship "new capitalism" policies that seek to distribute wealth more broadly among the population through higher pay. But it failed to trickle down to households in terms of wage increases. The stimulus policies introduced by former Prime Minister Shinzo Abe dubbed "Abenomics" in the late 2010s helped boost exporters' profits by weakening the yen. The share of low-paid part-timers in the workforce has also doubled since the early 1990s, and these so-called non-regular workers now account for nearly 40% of the workforce, putting a drag on pay increases. The focus on job security, rather than higher pay, is blamed for keeping Japan's wage growth stagnant. Since then, unionists have turned cooperative, rather than combative, working with management on the shared objective of job security. The increases fell below 3% after Japan slipped into deflation and prolonged economic stagnation in the late 1990s as it suffered its own banking crisis. The shunto wages eventually peaked in 1974 with a record 33% rise in pay. Unions demanded improvement in wages and job conditions by resorting to strikes in big cities, which peaked in the 1960s to 1970s. The practice, known as "shunto," began in 1956 when Japan's postwar economy was booming. In around March of each year, companies and unions negotiate pay for the fiscal year beginning in April of that year. ![]() Here is an overview of the wage negotiations: and why they are important. ![]() In Japan, with the economy entrenched in deflation for 15 years since the recession of the 1990s, people are unable to shake the perception that neither prices nor wages will rise. Steady wage hikes are crucial to kick-starting domestic demand and keeping inflation sustainably around its 2% target. The outcome will have a huge influence on how soon the Bank of Japan (BOJ) can end ultra-low interest rates. The precedent set at the "shunto" spring wage talks also influences wages at smaller firms that employ seven out of 10 Japanese workers. TOKYO, March 15 (Reuters) - Every March, management of major Japanese firms meet with unions for wage talks across industries that set the tone for employees' pay in the new fiscal year. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |