Minimum wage increase is not enough to overcome recession

Japan Press Weekly

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Minimum wage increase is not enough to overcome recession

The Central Council on Minimum Wage on July 28 recommended an increase in the regional minimum wage for 12 out of 47 prefectures, including Tokyo, by a range of 2-30 yen per hour. For the remaining 35 prefectures, the council recommended no change.

After the Central Council report is finalized on July 29, local councils on the minimum wage will consider their respective changes.

At a time when the need is to have a substantial raise in the minimum wage in order to eradicate the poverty and to overcome the recession, the financial circles and large corporations have been opposed to the raise on the pretext of the economic downturn.

The Minimum Wage Law stipulates that the minimum wage must be higher than the amounts of welfare assistance benefits so that everyone can exercise the constitutional right to live wholesome and cultured lives.

The national average of the hourly minimum wage was raised 16 yen to 703 yen in 2008. This hourly minimum wage enables a worker, working eight hours a day five days a week, to make an annual income of 1.5 million yen.

The Japan Research of Labor Movement (Rodo-soken) and the National Confederation of Trade Unions (Zenroren) estimated that the hourly minimum wage for a single-person household must be at least 1,345 yen in the Tokyo metropolitan areas and 1,332 yen in the Tohoku (northeast) region.

The workers' call for a raise of at least 1,000 yen an hour uniformly across the country is urgent and essential.

Despite the economic downturn, large corporations are maintaining their huge internal reserves and continue to pay dividends to shareholders. They have tried to reduce their workforces by arbitrary dismissals of part-time and other contingent workers and to insist on holding down workers' wages.

Increasing the minimum wage and improving the family budget continues to be essential for expansion of domestic demand and gaining economic recovery.

- Akahata, July 29, 2009