January 8, 2011
A very small share of the internal reserves of large corporations would contribute to raising wages by 10,000 yen a month and creating new jobs, a trade union recently estimated.
The estimate was issued by the Federation of National Public Service Employees’ Unions (Kokko-roren), based on research involving 144 major corporations and 142 holding companies that was conducted by the National Confederation of Trade Unions (Zenroren) and the Japan Research Institute of Labor Movement (Rodo-soken).
It reveals that by using less than 3% of their corporate internal reserves, as many as 120 companies could give a monthly 10,000 yen pay rise to their full-time and non-regular employees.
It also found that the use of just 1% of internal reserves would enable 87 companies to hire more than 1,000 employees for one year with an annual salary of 3 million yen.
Toyota Motor Corporation has amassed its internal reserves amounting to 13.27 trillion yen. Using only 0.49% of this would raise the wages of 380,000 full-time and non-regular workers by 10,000 yen a month. Using 1% of the internal funds would create more than 44,000 new jobs.
Between 1997 and 2009, the average yearly income of employees in the private sector fell by more than 620,000 yen, while the internal reserves in large corporations sharply rose from 142 trillion yen to 244 trillion yen.
Even business think tanks recently called for the use of the internal reserves to raise wages and create jobs as they consider these huge corporate funds as an obstacle preventing a healthy growth of the Japanese economy.
The estimate was issued by the Federation of National Public Service Employees’ Unions (Kokko-roren), based on research involving 144 major corporations and 142 holding companies that was conducted by the National Confederation of Trade Unions (Zenroren) and the Japan Research Institute of Labor Movement (Rodo-soken).
It reveals that by using less than 3% of their corporate internal reserves, as many as 120 companies could give a monthly 10,000 yen pay rise to their full-time and non-regular employees.
It also found that the use of just 1% of internal reserves would enable 87 companies to hire more than 1,000 employees for one year with an annual salary of 3 million yen.
Toyota Motor Corporation has amassed its internal reserves amounting to 13.27 trillion yen. Using only 0.49% of this would raise the wages of 380,000 full-time and non-regular workers by 10,000 yen a month. Using 1% of the internal funds would create more than 44,000 new jobs.
Between 1997 and 2009, the average yearly income of employees in the private sector fell by more than 620,000 yen, while the internal reserves in large corporations sharply rose from 142 trillion yen to 244 trillion yen.
Even business think tanks recently called for the use of the internal reserves to raise wages and create jobs as they consider these huge corporate funds as an obstacle preventing a healthy growth of the Japanese economy.
