This reflects a degree of hesitancy among corporate leaders to raise salaries in a knee-jerk reaction to inflation. Read more at straitstimes.com.
TOKYO – As business leaders in Japan face greater pressure to raise wages in an inflationary environment, they are becoming more vocal about the need to pay employees based on merit.
Even so, Japan is showing signs of emerging from decades of deflation and loose monetary policy. Consumer prices are on the rise, withManufacturers are bracing for tough negotiations with unions during annual spring wage talks. A tight labour market is forcing businesses to raise salaries to attract and retain talent.
“The point of the change is to encourage employees to do the quality work that meets global standards,” Mr Takeshi Okazaki, Fast Retailing’s chief financial officer, said in a briefing. “If you want to ask for a world-class level of work, then you should give a world-class reward.” “Pay your workers more, and they’ll go buy more products” was former Prime Minister Yoshihide Suga’s public pet peeve, Mr Lundy said. “But that didn’t really happen.”
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