[Japan] Minimum wage talks stalled by divided government panel

Talks to determine minimum wages in Japan have stalled, as members of a government panel on the matter continue to be divided in the final stage of discussions, The Japan Times reports.

Management and labour representatives on a subcommittee of the Central Minimum Wages Council, which advises the labour minister, share the view that minimum wages need to be raised to combat soaring prices.

The two sides had reportedly been expected to reach an agreement at a meeting of the subcommittee on July 25.

The labour side called for wage increases in line with price rises, while the management side claimed that corporate profits are being pressured by higher costs.

Negotiations in 2021 led to the biggest-ever rises in minimum wages under pressure from the Prime Minister’s Office for steep pay increases.

The negotiations were ultimately put to a vote after the labour and management sides failed to narrow gaps. Two members of the management side had opposed the biggest-ever rises, claiming that smaller companies were not financially strong enough to fund them.

The conclusion of last year’s talks with that rare vote is said to be impacting this year’s negotiations.

Tomoko Yoshino - president of the Japanese Trade Union Confederation (“Rengo”), the umbrella organisation for labour unions in the country - has said that minimum wage negotiations should never end with a vote again.

During the previous round of talks, a public interest member who is neutral in negotiations said that the labour and management sides need time to reconsider how to decide the size of wage increases.

Sources familiar with the situation said reportedly said that the two sides are accelerating efforts behind the scenes to reach an accord.

Talks to determine minimum wages in Japan have stalled, as members of a government panel on the matter continue to be divided in the final stage of discussions, The Japan Times reports.

Management and labour representatives on a subcommittee of the Central Minimum Wages Council, which advises the labour minister, share the view that minimum wages need to be raised to combat soaring prices.

The two sides had reportedly been expected to reach an agreement at a meeting of the subcommittee on July 25.

The labour side called for wage increases in line with price rises, while the management side claimed that corporate profits are being pressured by higher costs.

Negotiations in 2021 led to the biggest-ever rises in minimum wages under pressure from the Prime Minister’s Office for steep pay increases.

The negotiations were ultimately put to a vote after the labour and management sides failed to narrow gaps. Two members of the management side had opposed the biggest-ever rises, claiming that smaller companies were not financially strong enough to fund them.

The conclusion of last year’s talks with that rare vote is said to be impacting this year’s negotiations.

Tomoko Yoshino - president of the Japanese Trade Union Confederation (“Rengo”), the umbrella organisation for labour unions in the country - has said that minimum wage negotiations should never end with a vote again.

During the previous round of talks, a public interest member who is neutral in negotiations said that the labour and management sides need time to reconsider how to decide the size of wage increases.

Sources familiar with the situation said reportedly said that the two sides are accelerating efforts behind the scenes to reach an accord.