Keidanren vice chief calls for 3% pay hikes by firms

January 30, 2018

Tokyo- Yasumi Kudo, vice chairman of the Japan Business Federation, or Keidanren, has expressed his hope that moves toward a 3 percent pay hike will spread among Keidanren's member companies.

Japan's biggest business lobby has called on its members to consider a 3 pct pay raise in its guidelines for this year's "shunto" management-labor wage negotiations, in response to Prime Minister Shinzo Abe's request.

"I hope the move will spread" among member companies, said Kudo, who is in charge of Keidanren's shunto negotiations, in an interview on Monday.

Noting Japan's strong corporate earnings, he also said he wishes to see companies "go a step further from last year, as bonus payments tend to be linked to performance."

The government has stepped into shunto negotiations by calling for a wage hike for the fifth straight year.

The Japanese Trade Union Confederation, or Rengo, is urging its member unions to request a 4 pct monthly pay raise through pay-scale hikes and seniority-based regular wage increases.

Meanwhile, Keidanren has said a pay increase on an annual income basis, which includes lump-sum payments, is also acceptable.

On a new overtime cap, a key item in the government's proposed work style reform measures, that will cause a drop in overtime pay, Kudo, also chairman of shipping firm Nippon Yusen K.K. encouraged companies to make up for the decrease by taking steps such as boosting allowances.

"If labor productivity improves, workers should be rewarded for it in some form," he said.

Referring to a bill, to be submitted to the current parliamentary session, that would exclude highly paid professionals from working-hour restrictions and expand the discretionary work system, Kudo pointed to the importance of flexible work styles. Jiji Press