Excerpt from the linked content^1 by Philippe Escande, as translated:
>During this month of February, annual wage negotiations are in full swing in Japan.
>At the country’s most famous company, Toyota, the unions were expecting weeks of bitter discussions and modest results.
>But to their surprise, management announced on the very first day that it would agree to all of their demands.
>The negotiations were over as soon as they started, a situation unheard of in a country where consensus is the rule.
>While the actual increases obtained are not yet known, it is understood that they will be historic. “We must encourage the redistribution of wealth,” said Koji Sato, the manufacturer’s future CEO, who will take up his post in April.
>
>Toyota is not the only one to follow this generous path. Competitor Honda has said that increases will reach 5% this year, another record.
>The Fast Retailing company, known for its Uniqlo brand, is also on board, with salary increases of up to 40%.
>Nintendo, Suntory, and Nippon Life Insurance are all following suit.
>For years, the Japanese government has been trying to encourage companies to raise wages in order to revive inflation.
>Prices, excluding food, rose by 4% in 2022, here again at an unprecedented level in 40 years. The price rises must be supported by consumption, and therefore wages.
>What remains to be done is to convince the millions of SMEs that employ 70% of the Japanese population, which will not be easy.
>If Prime Minister Fumio Kishida succeeds, he will have broken the spell that has poisoned the Japanese economy for almost half a century.
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Excerpt from the linked content^1 by Philippe Escande, as translated:
>During this month of February, annual wage negotiations are in full swing in Japan.
>At the country’s most famous company, Toyota, the unions were expecting weeks of bitter discussions and modest results.
>But to their surprise, management announced on the very first day that it would agree to all of their demands.
>The negotiations were over as soon as they started, a situation unheard of in a country where consensus is the rule.
>While the actual increases obtained are not yet known, it is understood that they will be historic. “We must encourage the redistribution of wealth,” said Koji Sato, the manufacturer’s future CEO, who will take up his post in April.
>
>Toyota is not the only one to follow this generous path. Competitor Honda has said that increases will reach 5% this year, another record.
>The Fast Retailing company, known for its Uniqlo brand, is also on board, with salary increases of up to 40%.
>Nintendo, Suntory, and Nippon Life Insurance are all following suit.
>For years, the Japanese government has been trying to encourage companies to raise wages in order to revive inflation.
>Prices, excluding food, rose by 4% in 2022, here again at an unprecedented level in 40 years. The price rises must be supported by consumption, and therefore wages.
>What remains to be done is to convince the millions of SMEs that employ 70% of the Japanese population, which will not be easy.
>If Prime Minister Fumio Kishida succeeds, he will have broken the spell that has poisoned the Japanese economy for almost half a century.
^1 Translation of an original article in French by Philippe Escande for Le Monde, 23 Feb. 2023, https://www.lemonde.fr/en/economy/article/2023/02/23/japan-experiences-historic-wage-rises_6017015_19.html