Editorial: Japan Wage Negotiations: Updated April 21, 2024.

 

Editorial: Japan's wage negotiations a chance to revitalize economy with pay raises

Article Source:  https://mainichi.jp/english/articles/20240125/p2a/00m/0op/008000c

Ideas:

Japanese trade unions might want higher pay raises companies might agree with higher pay raises but also maybe some companies are unable to meet the 5 percent pay raise and the 3% or more base pay.

Yes, this is a situation, maybe due to pressure on all sides companies are going to unleash their long-stored up bank accounts and give the needed pay raises.

There are also two other reasons for the increase in pay. One being its the right thing to do for the good of Japanese society and the Japanese economy, and it give Japanese companies some good public relations points.

The next reason is Japan is in a labor shortage now, and for companies to get the best talent possible they need to pay higher wages as a way to ensure to get what workers they need.

The pay raises eventually could be a multiplier effect, meaning as companies begin to see other companies giving pay raises they too will give pay raises, and then more and more companies will follow through too.

And yes, the key is going to be small and midsize companies, as 70 percent of the Japanese workforce doesn't work for the large Japanese companies.

And there are the non-regular workers and part-time workers who are a significant number or workers in the Japanese economy too.

Japanese companies need to see these workers as being significant stakeholders and not just insignificant numbers to be used and thrown out.

Wages or salaries in Japan are some of the lowest among OECD countries. If Japanese companies had not adopted western style cost cutting measures and given regular pay raises each year, maybe the Japanese economy might not have been in the situation its in today.

Unfortunately, they have prioritized stockholders over employees and employees have not been given the wages or salaries they deserve.

And the worst part is large companies taking advantage of smaller subcontractors by not giving the prices they want or need for their products.

Japan used to have a structure that benefited employees and subcontractors with respect but those days seem long gone as companies place profits and stockholders over the benefits of stakeholders, being employees and subcontractors too.

Expanding investment into people is now the future and the outdate style of business is not going to work with young workers today.

News spreads fast, both good and not so good and if young workers know a company is not offering good benefits or good salaries or a good work/life experience, others will know and not apply to that company.

All stakeholder, these days need to be considered and not just regular workers, but subcontractors too and they too can spread information both good and not so good.

Wage increases need to be permanent and continuous and not just a one-time situation and then the next year forgotten. If not the Japanese economy is going to be an economy of haves and have-not and the Japanese economy is going to be unbalanced and consumer spending will never reach its potential.

Have a nice day and be safe!