April 20, 2013

Prime Minister Abe Shinzo on April 17 boasted that an increasing number of companies are raising their workers’ wages as requested by the government, but that is a false claim.

The outcome of this spring labor-management wage talks shows that wages in neither large corporations nor small- and medium-sized enterprises (SMEs) have increased.

According to the Japan Business Federation (Keidanren), major listed manufacturers settled for an increase of 6,204 yen a month on average with their workers’ unions, which is 1.96% up from the previous year. However, looking at the increased amount, it was 115 yen less than that given last year. In non-manufacturing industries, wage hike negotiations ended up with 6,201 yen a month, only a slight rise of 1.81%.

These compromise figures include an automatic increase based on age but stopped short of achieving a basic pay hike.

Wage negotiations at most large corporations already reached an agreement. With no concern for the government request, they succeeded in restraining agreed wage figures from going higher.

As for SMEs, the Japanese Trade Union Confederation (Rengo) released the figures agreed upon between labor and smaller business management. The average increase was 4,179 yen, down 397 yen from the previous year.

Although SMEs consist of about 70% of business establishments in Japan, wages of workers there remain the same.

In regard to temps and part-timers, a survey conducted by Recruit Co., Ltd. shows that temporary workers receive an average of 1,475 yen in hourly wages in major cities in Japan as of March, lower than the hourly wage one year ago and also lower than the previous month. Similarly, part-time workers are paid less in hourly wages than the same month last year and the last month with an average rate of 941 yen.

Workers’ wages are comprehensively held down showing no sign of an upward trend. Abe is just making it sound as if wages are increasing in total disregard of the facts.