July 13, 2007
Increasing poverty and social disparities have become a major issue in the House of Councilors election.
The national average of Japan’s minimum wage, 673 yen an hour (about 115,000 yen a month), is the lowest among the developed countries. Workers cannot live on the minimum wage alone which amounts to only 32 percent of regular workers’ average wage.
Both the National Confederation of Trade Unions (Zenroren) and the Japanese Trade Union Confederation (Rengo) are demanding that the hourly minimum wage be raised to at least 1,000 yen.
One major reason for allowing the minimum wage level to be set so low is that not only the “cost of living” but also corporations’ “ability to pay” is taken into account in deciding the minimum wage. The fact that there are gaps among minimum wages as applicable to different regions is also causing social disparities and work to lower the overall minimum wage level.
According to the International Labor Organization (ILO), 62 percent of 101 countries it researched have established their minimum wage based on the cost of living or needs of workers and their families.
There are only 15 countries that take corporations’ ability to pay into account as the basis for the minimum wage. Only nine countries allow regions to set their own minimum wage.
It is extraordinary for Japan, while having the second strongest economy in the world, to have various minimum wages depending on regions and to set them based on corporate financial capability.
JCP: more than 1,000 yen
The JCP calls for the minimum wage to be drastically raised to more than 1,000 yen, as labor unions demand, on the grounds that the government is responsible for raising it in order for the public to be able to “maintain the minimum standards of wholesome and cultured living” as guaranteed by the Constitution.
The JCP also calls for establishing a national uniform minimum wage system so that a single minimum wage will be applied to workers no matter where and in what occupation they work.
In order for small- and medium-sized companies to be able to pay an increased minimum wage, the JCP proposes that the government regulate major corporations’ abusive pressures on subcontractors as well as fierce competition caused by deregulations, and grant subsidies to those smaller businesses.
LDP and Komei: oppose increase
The ruling Liberal Democratic and Komei parties intend to maintain the current system in which the minimum wage is set in accordance with corporate “ability to pay” and differently by each prefecture.
Faced with public criticism, the ruling coalition submitted to the last session of the Diet a bill to revise the minimum wage law that would require the government to raise the minimum wage above the standard of welfare benefits in setting the minimum wage. However, they decided to carry over the bill to the next session with almost no discussion.
Prime Minister Abe Shinzo has made clear that he will reject an increase in the minimum wage, insisting that it will hurt businesses.
DPJ: increase gaps
The Democratic Party of Japan is calling for a national uniform minimum wage of 800 yen as well as local minimum wages of 1,000 yen on average. Under the current system, the difference between the highest minimum wage in the nation (Tokyo) and the lowest one (four prefectures, including Okinawa) is 109 yen. Such a large gap as the DPJ proposes would undermine the role of the minimum wage system to decrease poverty and social disparities.
The DPJ also proposes introducing a system in which the minimum wage for workers younger than 18 years old and 70 years old or older shall be lowered, a major adverse revision of the current law. The ILO has criticized the minimum wage system that allows gaps based on workers’ age. - Akahata, July 13, 2007
The national average of Japan’s minimum wage, 673 yen an hour (about 115,000 yen a month), is the lowest among the developed countries. Workers cannot live on the minimum wage alone which amounts to only 32 percent of regular workers’ average wage.
Both the National Confederation of Trade Unions (Zenroren) and the Japanese Trade Union Confederation (Rengo) are demanding that the hourly minimum wage be raised to at least 1,000 yen.
One major reason for allowing the minimum wage level to be set so low is that not only the “cost of living” but also corporations’ “ability to pay” is taken into account in deciding the minimum wage. The fact that there are gaps among minimum wages as applicable to different regions is also causing social disparities and work to lower the overall minimum wage level.
According to the International Labor Organization (ILO), 62 percent of 101 countries it researched have established their minimum wage based on the cost of living or needs of workers and their families.
There are only 15 countries that take corporations’ ability to pay into account as the basis for the minimum wage. Only nine countries allow regions to set their own minimum wage.
It is extraordinary for Japan, while having the second strongest economy in the world, to have various minimum wages depending on regions and to set them based on corporate financial capability.
JCP: more than 1,000 yen
The JCP calls for the minimum wage to be drastically raised to more than 1,000 yen, as labor unions demand, on the grounds that the government is responsible for raising it in order for the public to be able to “maintain the minimum standards of wholesome and cultured living” as guaranteed by the Constitution.
The JCP also calls for establishing a national uniform minimum wage system so that a single minimum wage will be applied to workers no matter where and in what occupation they work.
In order for small- and medium-sized companies to be able to pay an increased minimum wage, the JCP proposes that the government regulate major corporations’ abusive pressures on subcontractors as well as fierce competition caused by deregulations, and grant subsidies to those smaller businesses.
LDP and Komei: oppose increase
The ruling Liberal Democratic and Komei parties intend to maintain the current system in which the minimum wage is set in accordance with corporate “ability to pay” and differently by each prefecture.
Faced with public criticism, the ruling coalition submitted to the last session of the Diet a bill to revise the minimum wage law that would require the government to raise the minimum wage above the standard of welfare benefits in setting the minimum wage. However, they decided to carry over the bill to the next session with almost no discussion.
Prime Minister Abe Shinzo has made clear that he will reject an increase in the minimum wage, insisting that it will hurt businesses.
DPJ: increase gaps
The Democratic Party of Japan is calling for a national uniform minimum wage of 800 yen as well as local minimum wages of 1,000 yen on average. Under the current system, the difference between the highest minimum wage in the nation (Tokyo) and the lowest one (four prefectures, including Okinawa) is 109 yen. Such a large gap as the DPJ proposes would undermine the role of the minimum wage system to decrease poverty and social disparities.
The DPJ also proposes introducing a system in which the minimum wage for workers younger than 18 years old and 70 years old or older shall be lowered, a major adverse revision of the current law. The ILO has criticized the minimum wage system that allows gaps based on workers’ age. - Akahata, July 13, 2007
