TOKYO: A spate of larger wage hikes than last year announced Wednesday by many companies in this year’s “shunto” labor-management negotiations in Japan is “reassuring,” Prime Minister KISHIDA Fumio said.

At the day’s meeting of government, labor, and management officials, Kishida also stressed the need to spread the momentum of wage increases to smaller companies, in order to realize a virtuous economic cycle.

“We are now coming to a crucial point to seize the opportunity to fully overcome deflation,” the prime minister said.

Participants in the meeting included YOSHINO Tomoko, president of the Japanese Trade Union Confederation, or Rengo, TOKURA Masakazu, chairman of the Japan Business Federation, or Keidanren, and KOBAYASHI Ken, chairman of the Japan Chamber of Commerce and Industry.

The participants agreed to thoroughly implement measures to facilitate efforts to reflect higher raw material, energy, and labor costs in prices.

Kishida said that the government will disclose by the end of this month the names of companies whose efforts on prices are found to be inadequate by the Japan Fair Trade Commission.

The results of this year’s shunto negotiations will serve as a test for the Kishida administration’s goal of ending deflation completely. Together with labor and management, the government aims for wages to rise faster than prices.

The prime minister also expressed eagerness to raise the wages of nonregular workers, as well as minimum wages.

Wednesday’s meeting was the third of its kind, after those in November last year and January this year.

Kishida apparently hopes to boost his cabinet’s sluggish approval rate by actively promoting wage increases.

JIJI Press