labor

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Nippon Keidanren says wage hike will be source of future trouble

The Japan Business Federation (Nippon Keidanren) on December 13 published its 2006 Position Paper on Management and Human Resources, setting forth a policy for labor talks in the 2006 Spring Struggle.

Despite the largest-ever internal reserves that large corporations have ever amassed, the position paper warns companies not to offer wage increases, on the grounds that that will be the cause of trouble in the future.

Unlike the previous position papers calling for restraint on wage increases, the 2006 position paper says that individual labor negotiations should decide whether to raise wages to enhance workers willingness without harming corporate competitiveness.

The thing is that if pro-business unions fail to demand a wage increase at a time when larger corporations are making large profits, workers will not be convinced.

The position paper also recommends that short-term achievements be reflected in bonuses, not across-the-board increase in wages.

It even emphasizes the need to immediately shift the annual wage increase system into a performance-based wage system.
- Akahata, December 14, 2005