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Bosses and workers split over minimum wage in Japan
The Central Minimum Wages Council in Japan is also considering upping minimum wages.
The main problem is none of the countries 47 prefectures are paying a minimum wage that is lower than state welfare – and this must be resolved, as the government has already revised the Minimum Wages Law to rectify this “inverted situation” by the end of 2009.
The current average minimum wage in Japan is 703 yen per hour (about US$7.40) and the Japanese Trade Union Confederation wants to see the national average rise to 900 yen per hour (about US$9.50).
But employers argue the recession means they cannot afford to pay higher wages because the additional financial outgoing would lead to companies making workers redundant, making the downturn worse.
The Japanese government is wants minimum wage reform to improve the lives of the “working poor.”
An increase in Japan’s minimum wage could affect domestic and foreign companies with low paid workers in Japan. Many firms have already cut hours and predict that layoffs would be inevitable if the minimum wage increases.
