Electronics firms to raise pay scales

Kyodo

Japan’s six major electronics makers, including Hitachi Ltd. and Panasonic Corp., have decided to raise their wage scales by ¥2,000 per month, the highest hike on record, in labor-management wage talks, sources close to the matter said Monday.

The move is likely to affect other industries as well.

NEC Corp. and Fujitsu Ltd. were originally reluctant to accept the amount and wanted to limit the pay hike to ¥1,500, but they decided to follow other the companies.

The companies, which include Toshiba Corp. and Mitsubishi Electric Corp., will announce their final decisions Wednesday.

The labor unions at the companies originally made a unified demand to raise basic pay scales by ¥4,000 and said they would strike if the managements do not hike pay by at least ¥2,000.

In the end, the companies took into consideration calls by the government to raise wages to pull Japan out of deflation and mitigate the impact of the consumption tax hike on April 1.