Abe urges companies to raise wages

JIJI

Prime Minister Shinzo Abe Saturday urged corporate managers to accept demands for higher pay in the coming “shunto” spring wage negotiations with their labor unions.

“We need to create a good cycle in which improved corporate earnings get reflected in wages, lead to consumption growth and then boost corporate earnings further,” Abe said in an address to a New Year’s gathering.

“Each of us must do what we can,” he said, urging companies to pay employees more to support his strategy for halting deflation.

Many labor unions are expected to bargain for higher wages in light of the economic rebound being spurred by his yen-weakening “Abenomics” strategy.

The meeting was organized by Abe’s supporters in Nagato, Yamaguchi Prefecture, part of the constituency he serves in the House of Representatives.

“We will accelerate reconstruction (of Tohoku), strengthen the social security system, promote educational reform and turn Japan into a country where women can shine,” Abe said.

Japan also needs to contribute to world peace and stability under the principle of “proactive pacifism,” he said, alluding to his top aim of revising the war-renouncing Constitution.

Before the gathering, Abe visited the grave of his father, former Foreign Minister Shintaro Abe, together with his wife, Akie.

  • JTCommentor

    So Japanese companies have increased profits from weaker yen, are going to get numerous tax breaks under the recently announced changes, are passing on increased cost of raw materials by upping prices, however in true stingy fashion, they are just sticking their additional cash in the bank.

    Japanese workers are getting increased cost of living, increased consumption tax, increased personal income tax from the already high level and no raise in their already pittiful wages.

    Seems like its all going to work well.