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Japan – Business lobby to call on companies to raise wages

20 November 2014

The Japan Business Federation, or Keidanren, will encourage wage increases in its guidelines for management when the annual spring labour negotiations begin next year, reports asia.nikkei.com

The Federation aims to draw on corporation, individuals, and local commerce to support corporate activities contributing to the development of the Japanese economy. It has acknowledged Prime Minister Shinzo Abe's call for wage hikes, determining that employment and wage support are crucial for putting Japan's economy on the recovery track.

The question remains, however, whether an across-the-board wage increase from companies and industries, known as a “base-up”, will come to fruition.

Keidanren issues a report every January in which it seeks to dictate guidelines companies can use in the bargaining process.

Federation Chairman Sadayuki Sakakibara commented: "Wage increases next spring are necessary to continue turning Japan along [the Abe government's] positive cycle of recovery.”

He is expected to call on member companies to raise wages.

The January 2014 report urged businesses with favourable earnings to consider using profits to boost wages. It suggested that there were other options are available in addition to those pursued in recent years; hinting at an increase in base wages for the first time in six years.