Prime Minister Sanae Takaichi on Thursday called on Japanese companies to agree to wage increases that outpace inflation in next year’s annual labor talks, as her government promotes what she describes as “responsible yet aggressive” fiscal measures to drive economic growth.
Addressing a meeting hosted by Keidanren, Japan’s most influential business lobby, Takaichi said, “I once again ask business leaders to aim for base pay hikes that are not offset by rising prices.” Known for her fiscally dovish stance, Takaichi, who became Japan’s first female prime minister in October, seeks to boost government revenues and household spending without raising taxes, even as inflation continues to erode real wages.
Keidanren chairman Yoshinobu Tsutsui responded that the federation’s members “will work to further entrench strong momentum for wage increases.”
The upcoming “shunto,” Japan’s annual wage negotiations between management and labor unions, will begin early next year. Many major corporations are expected to conclude discussions before closing their fiscal books in March.