| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

Asia Economy Last Updated: Mar 11, 2014 - 9:06 AM

Japan’s major electronics makers agree monthly pay rise of €14 / ¥2,000
By Michael Hennigan, Finfacts founder and editor
Mar 11, 2014 - 9:00 AM

Email this article
 Printer friendly page
Shinzo Abe, Japan's prime minister, at a press conference in Tokyo, Monday March 10, 2014, in advance of today's third anniversary of the devastating earthquake and tsunami when almost 19,000 people lost their lives.

Japan’s six major electronics makers, including Hitachi Ltd. and Panasonic, have agreed to raise their wage levels by ¥2,000 (€14) per month, the highest hike on record, according to the Kyodo news agency on Monday.

The move is likely to affect other industries as well, before the start of the new fiscal year on April 1st.

Kyodo said NEC  and Fujitsu Ltd. were originally reluctant to accept the agreed amount amount and wanted to limit the pay hike to ¥1,500, but they decided to follow other the companies.

The companies, which include Toshiba  and Mitsubishi Electric, will announce their final decisions Wednesday.

The trade unions at the companies originally made a unified demand to raise basic pay scales by ¥4,000 and said they would strike if the managements do not hike pay by at least ¥2,000.

Companies responded to calls by the government to raise wages to pull Japan out of deflation and soften the impact of the 3% consumption tax hike to take effect on April 1st.

The workers’ union at Toyota has requested an increase in monthly pay of 1.15% or about ¥4,000, while unions at Nissan Motor Co. and Honda Motor Co. have called for a base pay increase of ¥3,500 yen, a 0.96% increase.

Bloomberg reported this month that Japan’s salaries increased for the first time in almost two years in January as companies boosted pay for part-timers, aiding Prime Minister Shinzo Abe’s effort to end 15 years of deflation.

Base pay excluding bonuses and overtime rose 0.1% from a year earlier, the first gain in 22 months, the labor ministry said in Tokyo. Overall pay fell 0.2%, the first drop in three months.

Base wages for full-time workers, who comprise almost 71% of Japan’s working population, were unchanged, while those of part-time workers climbed 1.1%.

Consumer prices

Japan’s consumer prices rose just 0.4% in 2013 but excluding energy and food prices, the index fell 0.2% compared with 2012.

The Bank of Japan’s target is a 2% inflation rate by next year and since early last year it has been aggressively pumping money into the economy.

Government data on Monday showed that the overall economy grew just 0.7% on an annualised basis in the final three months of 2013, a downward revision from the initially projected 1% growth rate. Business investment grew by an annualised 3% in the fourth quarter, compared with a preliminary reading of a 5.3% increase. Consumer spending was up an annualised 1.6%.

While the world's number-three economy grew 0.2% in the quarter to December, growth was 1.5% through 2013.

The current account, which is based on net receipts from trade and investment with the rest of the world, posted an overall deficit of ¥1.59tn ($15.4bn) for January.

Without a rise in wages to promote consumer spending, the 'Abenomics' policy of the prime minister to slay deflation will not succeed.

Check out our subscription service, Finfacts Premium , at a low annual charge of €25

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Asia Economy
Latest Headlines
IMF defers renminbi reserve decision; Devaluations losing firepower
Japan's trade deficit widens and GDP falls despite 33% yen devaluation
China's exports slide in July; Fx reserves dip $42.5bn in month
Chinese manufacturing PMI falls for 5th straight month in July; Japan at 5-month high
China's overseas investments to surge; Ireland got €99m of €46bn invested in EU in 2000-2014
China to overtake US economy in 2026; Income per capita will be 50% of US in 2050
Manufacturing activity in China and Japan contracted in June
China's manufacturing contracted for third straight month in May; Japan in slight rise
Asia accounts for 40% of global output, two-thirds of global growth
China's exports unexpectedly fell in April 2015 after March dip
China's growth in 2015 at slowest since early 2009
China's 2015 foreign trade continues to slide
Singapore remains world’s top location for business on 50th anniversary of independence
China's manufacturing activity fell to a 11-month low in March
China in surprise rate cut to boost sagging economy
Chinese Lunar New Year: Year of the Wood Goat begins this week
China’s manufacturing shrunk in January; Regional rise except Indonesia
Profits of Chinese industrial businesses plunged in 2014
China's growth in 2014 fell to a 24-year low
Services activity in China, Japan and India in moderate rises in December
China’s manufacturing industry remains competitive despite rising wages
China revises 2013 GDP up 3.4% to 56.5% of US economy size
China's manufacturing contracts in December; Japan's grows
China's imports slide in November; Emerging markets slow
Manufacturing PMI stalled in China in November; Fell in Korea, Indonesia , grew in India
China's manufacturing output contracted in November; Japan's accelerated
Ireland not among top 67 destinations for Chinese outbound FDI in 2014
Japan fell into recession in third quarter of 2014
Services slowed in China, contracted in Japan and stagnated in India in October
Manufacturing in South Korea/ Indonesia contracted in October; India in slight rise
Two Chinese manufacturing reports show trading near stagnation levels
Bank of Japan raises money printing target; Spending and wages plunge
China's manufacturing stagnates, Japan in moderate growth
China’s economy in third quarter grew at slowest pace in five years
Chinese exports jump in September; "Sadness will return soon"
World Bank cuts growth forecasts for developing East Asia including China
Japanese business confidence slightly improves; Manufacturing sector weak
Developing Asia remains fastest-growing region in world in 2014
Chinese manufacturing PMI rose slightly in September
Japan reports 26th straight monthly trade deficit; Public debt tops ¥1,000tn