EXCLUSIVE: Keidanren to Allow Pay-Scale Hike in 2019 Wage Talks

November 29, 2018

Tokyo--The Japan Business Federation, or Keidanren, is considering allowing member firms to raise employee pay scales in next year's "shunto" spring labor-management wage talks for the sixth consecutive year, informed sources told Jiji Press on Wednesday.

The largest employers' group in Japan plans to suggest that a pay-scale increase is "an option" for companies with brisk earnings, in its shunto guidelines, the sources said.

Keidanren's chairman and vice chairs will discuss the plan when they meet on Monday.

The group thinks that passing on the benefits of higher corporate profits to employees will help the Japanese economy maintain the momentum after the consumption tax is raised from 8 pct to 10 pct in October next year, the sources said.

A draft of the shunto guidelines calls on Keidanren member companies to consider raising pay scales for several years, not focusing on just a single year.

In 2018 shunto talks, Keidanren asked member firms to raise employee pay by 3 pct through pay-scale hikes, regular raises or other steps to meet a request from Prime Minister Shinzo Abe.

For 2019 shunto, Keidanren has no plans to suggest any specific figure, the sources said. Jiji Press