Uniqlo Salary Increases:

 Article Source: https://mainichi.jp/english/articles/20230111/p2g/00m/0bu/016000c

Article:

TOKYO (Kyodo) -- Uniqlo operator Fast Retailing Co. said Wednesday it will raise the annual salaries of its workers in Japan by up to 40 percent in March in an effort to narrow the remuneration gap with its employees overseas and increase the company's global competitiveness.

Due to the revision of its remuneration system covering 8,400 full-time employees, the labor cost of the casual clothing chain operator is expected to increase by around 15 percent.

Starting monthly salaries for university graduates will be increased to 300,000 yen ($2,300) from the current 255,000 yen, an annual pay hike of about 18 percent, the company said.

Ideas:

Anytime companies increase salaries most likely there are going to be increases in products as they have to pay for the salary increases. 

But perhaps Uniqlo has enough reserves that it can be generous with is salary increases. 

Even more important if wants to hire the best talent available they know they need to pay salaries that new graduates want and need. 

Even at 300,000 that still still be a little low for good talent and especially if other companies are in the 350,00 range Uniqlo still has a ways to go.

Article:

The monthly salaries of new store managers will be 390,000 yen, up 100,000 yen and an increase of around 36 percent annually. The annual earnings of other employees will also be increased by up to 40 percent, according to the company.

The Japanese government has urged companies to raise wages amid rising living costs, and the global clothing giant's move is expected to affect the annual "shunto" spring wage negotiations between management and labor across Japan.

Chief Cabinet Secretary Hirokazu Matsuno welcomed Fast Retailing's decision and said he hopes other companies will follow suit and raise wages "to the maximum extent."

Ideas:

Perhaps as other companies see what Uniqlo is doing they too will increases the salaries of their employees and new graduates in order to remain competitive and be able to hire the best talent possible.

A 36 percent increase for managers and a 40 percent increase for other employees has to come from somewhere so Uniqlo customers can expect to see increases in prices in the Uniqlo stores soon and Uniqlo will most likely pass on the wage increases to the customers.

Increasing wages "to the maximum extent" might not be possible for every company but every company can probably do something, so something is better than nothing for many wage earners.

Article:

"The best way to address the high commodity prices at the moment is to continuously raise wages to keep pace with rising prices," the top government spokesman said at a regular news conference.

Fast Retailing employees' bonuses are also expected to rise based on the forthcoming changes. The company said it will scrap executive allowances and implement a common grading system for deciding employees' salaries.

The latest pay raise comes after the company increased its part-time workers' hourly wages in Japan by about 20 percent on average last September.

Ideas:

It might not be possible for every company to increase wages but every company again might be able to do something to curb the high commodity prices in Japan. 

Lets hope Uniqlo and Fast Retailing doesn't become too much like a western style company where bonuses and allowance are out of control and still remember that the employee is still a valuable stakeholder in the company.

It's good that it gave part-time employees an 20 percent increase as they too feel the pressure of higher commodity prices.

And even more important, if Uniqlo wants higher quality part-time employees they need to make sure their part-time wages are competitive with others in Japan.

Article:

Fast Retailing posted a record net profit of 273.34 billion yen for the year that ended last August, up 60.9 percent from a year earlier, helped by robust overseas sales.

Operating profit was 297.33 billion yen on sales of 2.3 trillion yen. Both were record highs.

Ideas:

So it looks like Fast Retailing is not just sitting on its record profits but actually using it record profits and spreading their good success to the rest of the company by increasing wages for the good of it employees.

That is very good public relations too which shows Uniqlo and Fast Retailing is not just about higher-up executives but cares about its employees or at least knows to get the best talent possible it has to be good salaries.

But let's hope Uniqlo now will not go crazy and increase prices too much has it has to remember customers are important too.

Have a nice day and be safe!