Japan's largest labor association demands another hike in their minimum hourly wage. (Image via Public Radio International)

Hike our minimum hourly wage to ¥1,100: Rengo

Alfonsus Adi Putra
Politics & Economic
News Flash Japan
Dec 04, 2019
1695
On Tuesday, the Japanese Trade Union Confederation, the largest Japanese labor union also known as “Rengo”, decided to demand a raise of the minimum hourly wage to ¥1,100 starting next year. This was the first time that the Rengo specified the numeral amount of its demand.

Currently, the minimum hourly wage in Japan stands at ¥901, set by prefectural labor bureaus nationwide. It was the first time for Japan to crank the minimum hourly wage exceeding ¥900. Rengo demands the wage hike by 4 percent, a 2 percent increase in workers’ basic pay and the other two percent based on seniority.

Leader of Rengo, Rikio Kozu, stated that the wage hike culture is important in Japan, and it needs to be preserved. The same effort is also shown by the Japanese government, urging all the firms to raise wages to crank up consumer spending, since higher incomes for the workers mean more consumption.

The wage hike is not the only demand. Rengo stated that they also seek equality of labor conditions regardless of the status and prevention of any harassment in the workplace.

The demand would be submitted to the annual meeting with the employers in January 2020. The annual meeting seeks to close the wage gap between regular and non-regular workers, also small and big firms. Regarding the decision to bow down to Rengo’s demand, it will be decided in March 2020.

Companies might be forced to take heed of Rengo’s demand as the country is facing a labor crunch.

Source: https://bit.ly/38035Ix

Business , Labor , Employment , Economy , Politics , Regulation , Asia , Japan , Rengo