Japan Press Weekly

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2013 February 6 - 12 [LABOR]

PM responds to JCP: I’ll ask employers for increase in workers’ wages

Prime Minister Abe on February 8 said that he will ask businesses for a wage hike, in his reply to a question made by Japanese Communist Party member of the House of Representatives Kasai Akira.

At a House Budget Committee meeting, Kasai pointed out that while workers’ average annual income has decreased by 660,000 yen from its peak in 1997, corporations increased their profits by about 60% during the same period of time and also increased dramatically their internal reserves and dividends to shareholders.

“The increase in earnings of corporations hasn’t contributed to an increase in workers’ earnings,” said Kasai.

He also criticized the wage-cuts and downsizing measures imposed by big businesses as factors behind the lack of increase in the income of employees. Citing that the Japan Business Federation uses a fall in prices as an excuse to further restrain wages to workers, Kasai asked the prime minister if he supports this position.

Abe in his reply expressed his willingness to call on companies that succeeded in achieving a business recovery to implement a wage hike. He, however, said that he has no intention to make a judgment regarding the business circle’s position on wages.

Referring to the 260 trillion yen in internal reserves large corporations have amassed, the JCP representative stressed, “It is important for the government to establish a rule which forces corporations to use a part of their internal reserves to provide a higher salary to their workers as well as to employees with their subcontractors.”