The nation's largest business lobby, Keidanren, said Thursday it might urge companies to skip their periodic pay hikes or cut wages during the annual spring labor talks in 2013, a draft report on its negotiating position said Thursday.
"The pay raise system should not be regarded as sacrosanct," said the final draft by the highly influential group, hinting at the possibility of recommending a de facto pay cut.
The business environment "will remain in critical condition unless there is a drastic change in policies" and that the Japanese Trade Union Confederation's (Rengo) policy of seeking a 1 percent increase in total wages "disregards reality," it said.
Keidanren also said, "There is no room for discussions" on an across-the-board pay raise.