Japanese companies announce significant wage increases at economic groups' New Year gathering

Jan 06, 2024 | News On Japan

TOKYO - At the Friday New Year gathering of Japan's influential economic groups, major companies announced ambitious wage increases for the coming year, with many proposing raises of "more than 10%" and some as high as "16% and above."

When top executives were pressed on their plans for wage increases during the spring wage negotiations, a significant shift in policy emerged, reflecting a growing awareness of the need to reward and retain talent in a competitive global market.

Mitsui Fudosan's President Toshiaki Ueda stated, "We aim for a 10% increase this year, with the intention of rewarding our personnel, who are the source of value creation." This sentiment was echoed by other industry leaders.

Kentaro Okuda, President of Nomura Securities, shared a focused approach, saying, "Focusing on employees up to their third year, we are planning a 16% wage increase, including regular pay raises and base up (BA)."

President Makiko Ono of Suntory Food International expressed a similar commitment: "We fundamentally intend to realize wage increases."

Lawson's President, Sadanobu Takemasu, linked the company's pricing strategy to wages, explaining, "We have raised the prices of our products. We have a responsibility to ensure that wage increases exceed the rate of inflation."

In his address at the New Year gathering, Prime Minister Kishida highlighted the urgency of the situation. He emphasized the need to realize income increases that exceed inflation, urging the business community to implement substantial wage raises. Additionally, some companies have announced plans to continue raising wages consistently until 2030, indicating a long-term commitment to employee well-being and economic stability.

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