Gov't panel proposes more support for firms hiking wages

Rather than providing more corporate welfare for companies, why not provide funds and more support for labour unions. It's a historical fact that a strong union movement leads to better living conditions for workers.

Another impactful move would be to strengthen the government's Hello Work database and recruitment system and tax the private recruitment agencies into oblivion, as these outsourcing agencies thrive on garnishing workers' wages. With the available technology today, there is very little need for these rent seeking middle agents.

Keep printing more yens!

An economic policy panel of Japan's government on Monday proposed a fresh stimulus package to get the coronavirus-hit economy back in shape, including beefing up support for companies actively raising employee wages.

You know cutting corporate taxes, subsidizing them while their profits increased with Reaganite, Koizumi neo-liberlaism was going to lead to that sweet trickle down that would raise all boats? It hasn't happened for 30 years but now we will try something new.

We are just going to bypass workers and give money directly to companies if they pretty please promise to wage raises.

There has been great enforcement of other labor rules hasn't there?Oversight, enforcement; there probably will not be any budget for that.

"Through discussions there, we will draw up a 'grand design' and measures to put it into practice in spring next year, and introduce them to the world," he said.

This sounds so portentous , like he has not had a career in the ruling party to formulate his grand plan.

"Only after distributing (profits) to their employees in the form of wages would consumption expand," the panel said, adding that should there be a rise in consumption and growth in demand, "corporate profits would further increase, leading to (more economic) growth."

Through all those meeting they finally discovered trickle down economics doesn't work. They could have asked anyone on the street.

So the answer for them is more state welfare for businesses, not any talk about anything considered actual people, you know those who drive 60% of the economy domestically. Guess they are supported by being allowed to have a part time job.

Present Kishida regime who won the election with support from vested interests including supporting group of opposition parties will be not able to change something drastically.

Well, the other comments above nailed it. Giving money to failing businesses does not sound like a very innovative economic policy, Kishida-san.

Everything was just sweet nothings for the election, trickle down is not "new capitalism" and doesn't work. He can't force any corporation to increase wages and even if there are increases it will only be bread crumbs to appease the union for the annual collective bargaining. No union? No luck. Also, the mere fact that he's only now going to set up committees and come up with a "grand design" implies that he never had the nuts and bolts worked out while spouting off his campaign rhetoric, just fancy buzz words. Absolutely no sense of urgency, good luck Japan.

For the average worker the increase in salary will only cover the increase in taxes.

Right, use tax payers money to "support" companies that increase wages.

Am I the only one here who thinks something is totally wrong here? I mean large corporations here have been making money hand over foot for the longest time now, and employees real wages have steadily decreased. Not to mention the fact that this basically is talking about "full-time" employees, which have become and even smaller percentage of the overall work force!

Want changes? Drop the mandatory retirement at age 60! Companies retire these employees at 60, but keep them on until at least 65, at 1/3 or less salary, and almost no benefits, if any, AND they are still doing the same work!

Want changes? Raise the minimum wage to a "living" wage!

Oh and let's not forget dropping the 100 hour per month "maximum" ceiling on overtime! If that is going to stay in effect, then make it the LAW that corporations have to pay double-time or more for ANY overtime at all.

There are more institutional changes that need to be made before any "government" support should even be considered!

Japanese companies have been asked to increase wages for a long time now and have not done so. Why should they? Japanese Nationals will show up at work because they are loyal to their owners.

An economic policy panel of Japan's government on Monday proposed a fresh stimulus package to get the coronavirus-hit economy back in shape, including beefing up support for companies actively raising employee wages.

It is like they have never heard of the concept of UBI, that would serve as welfare and a boost to the woeful wages of the majority of the workforce in contract, zero hour labor. A majority of the opposition parties, even the Innovation Party, have it in their platform.

With the LDP, in cronies we trust. Everything has to pass through the hands of Keidanren and Dentsu first.

Give tax credits to PARENTS who are paying CHILD SUPPORT so they can start supporting their own kids and NOT rely on the government support only.

Most divorced parents are NOT paying child support because there are NO merits.

The people in need are part time and dispatch workers, salary men on ¥8 million a year don’t need help with pay rises. Abenomics didn’t work, why revisit money printing when the yen is already weak?

So the Japanese government, with its massive world leading deficit, will pay companies to pay its workers more (maybe). What nonsense.

Start by paying the poorest workers at least a living wage, which 930 yen per hour (40 hr week = 37,200 yen) is definitely not.

I am tired of hearing that this will hurt small businesses. Sorry boss, but if you can't pay your workers a living wage, close down and go look for a job yourself. Plenty out there right now at 930/hr.

Increasing the minimum wage would be the simplest solution, with no bureaucracy involved, and would ensure that all employees would get an increase.

signature vision of a "new capitalism," the panel also suggested a large-scale subsidy program

So ”new capitalism” is “more big government socialism”.

Gotta have a political slogan though… but how Orwellian

"Only after distributing (profits) to their employees in the form of wages would consumption expand," the panel said, adding that should there be a rise in consumption and growth in demand, "corporate profits would further increase, leading to (more economic) growth."

What if this new panel of central planners is wrong, much like the panels of the last 3 lost decades?

If Japanese companies can layoff workers easily when they go into red, they will pay more to workers when they make profits. But Japanese companies have to save money to maintain permanent hire system.

So also and again the many poor or everyone without being in employer-employed relationship all pay with their tax at the supermarket and for other services the planned benefits for already rich companies and wage hikes for employees who are already well equipped with jobs and income? Nice try. That’s not a new capitalism, that’s very obviously the most brutal capitalism one can think of.

New capitalism?

Jgov's latest euphemism for crappy policies. No wonder Japan is heading into third world status.

Maybe we should call it Krapitalism

Increasing wages, results increase in health insurance, pension and income tax. Even 100yen/day increment does more damage to working class. Govt basically instructing companies to pay them indirect way. If you are so worried about working class please give them tax break. Also, if you insist companies to increase wage please consider to increase income rage for tax calculations too (*lets do your part first).

In 30 years salaries have not changed, yet taxes have risen.

The effect of this is to make the Japanese people and those working in Japan poorer.

Companies won’t raise wages without laws requiring them to or labour shortages which require them to do so.

I found the best way to earn more money was outside Japan…

I can make most Japanese companies more profitable over night, get rid of the blinking Hanko stampers and papper pushers, as for the goverment initiatives, well I am rather sceptical about them, its good intentions, but are we only painting over the cracks, rather than fixing the problems?

Give tax credits to PARENTS who are paying CHILD SUPPORT so they can start supporting their own kids and NOT rely on the government support only.

Huh? Give tax credits to the parent that is raising the kids! Read what you wrote, you are STILL using tax money to support the kids either way!

Most women who divorce their husbands here dont want their ex involved in their kids, or their lives. These women CAN get child support from the ex, but choose not to. The courts can garnish their wages as well.

Most divorced parents are NOT paying child support because there are NO merits.

Wrong, it's not about merit, it's about mostly mother's here, not wanting ANY contact from their ex's.

THere is a HUGE merit, but it also means that they are still tied to their divorced spouse, and few want that!

I really wonder where you got the idea that having a spouse paying child support has no merit. That's weird!

This hike will only mean more taxes! The businesses will not take a loss as wages go up so does the cost of goods. The income looks larger on paper but the grocery bag items are smaller and less.