Gov't to set up panel to discuss ways for small firms to hike wages

What is there to discuss? most businesses can’t afford it.

"promote" salary hikes?! How about "force" salary hikes? This has been going on for a long time now, and it's clear employers are in no mood to enable real wage growth.

They need to be forced. The govt can rescind or threaten to rescind the corporate tax cut a few years ago and penalize companies whose profit growth well outpaces their pay raises through procurement bans, etc.

Simply put, make it unprofitble for corporations to be greedy. And don't just talk about it. Do it.

How ? Using more subsidies or more foreign "trainee" abuse relaxation? Many of those foreign "trainee" being forced to work overtime while working below standard Japanese worker wages.

They need to be forced. The govt can rescind or threaten to rescind the corporate tax cut a few years ago and penalize companies whose profit growth well outpaces their pay raises through procurement bans, etc. 

Simply put, make it unprofitble for corporations to be greedy. And don't just talk about it. Do it.

Just say it - you want communism.

Japanese Prime Minister Shigeru Ishiba said Friday his government will set up an expert panel to discuss ways to promote salary hikes by small and midsize companies to "achieve salary hikes that outpace rising prices."

Step 1: Get some actual workers input instead of some Keidanren panel of 'experts'. And pay them.

How many expert panels have been convened to discuss 30 years of stagnant wages and cash hoarding by firms?

They need to be forced.

Oh, that's doesn't sound totalitarian at all...

Japan's labor unions have the backbones of jellyfish, which explains why the govt has to step in on this issue so much. Where are they hiding this time?

The govt can also promote the mndset of "take this job and shove it." Japan has a labor shortage. The govt should be encouraging underpaid workers to move on and upward instead of mouldering away at stingy, go-nowhere employers.

If Ishiba is serious about raising wages, just abolish the 10% consumption tax. That would amount to as much reduction in retail prices and boost consumption. Consumers can’t wait until the end of 2020s.

Promises during the election when all he had was a "concept." So a panel of experts will hem and haw and carry on while real wages continue to drop. In the end, they will "encourage" employers to increase wages. Vote LDP, you got LDP Japan.

I don't see how a panel of "experts" can magic money out of the air. We can't afford to increase wages. There isn't anything to increase wages with.

owzerToday  07:35 am JST

"They need to be forced. The govt can rescind or threaten to rescind the corporate tax cut a few years ago and penalize companies whose profit growth well outpaces their pay raises through procurement bans, etc. 

Simply put, make it unprofitble for corporations to be greedy. And don't just talk about it. Do it."

Just say it - you want communism.

You have no idea how these small businesses have survived despite being unprofitable and in debt, do you.

Cut taxes so workers can take home more. Cut needless government spending as well

Cut taxes so workers can take home more. Cut needless government spending as well

Cut the lavish corporate welfare subsidies to these cash hoarding firms.

https://emea.nikkoam.com/articles/2024/unlocking-value-in-japans-cash-rish-2024

https://japannews.yomiuri.co.jp/politics/politics-government/20231030-146671/

And redistribute it as trickle up subsidies to the working populace, stimulating the consumer economy and in turn businesses.

You have no idea how these small businesses have survived despite being unprofitable and in debt, do you.

More than you know. My business hasn’t been profitable for years. lol

Businesses can’t afford wage hikes cause they don’t have many customers. Customers can’t go out cause they don’t have enough money.

Not enough is circulating and those that can afford to pay more are opting to give more to shareholders who (for the most part) are financially secure and just want more.

I would rather have consumer driven growth than shareholder growth alone.

Businesses can’t afford wage hikes cause they don’t have many customers. Customers can’t go out cause they don’t have enough money. 

Not enough is circulating

No. Too much is circulating. That’s why what you have isn’t worth what it used to be.

Some wise people have already said it: lower taxes. My local taxes alone at up 2 months of take home salary. Government spends too much.

“My local taxes alone eat up 2 months of take home salary.”

I’ve given up on the minimum wage here, and it will be very difficult for small firms to hike their wages. I agree on cutting taxes, especially 10% consumption tax is ridiculously high.

This isn't about corporates or unions. It relates to small businesses with a limited number of employees. Japan has lots of those.

The obvious solution is to raise prices to cover all extra costs. But this sends a fiscal shock down the supply chain and may wipe out a good deal of it.

A lot of small businesses in Japan have thin margins and simply won't survive the switch to an inflationary economy. Many of them produce key components for big companies. It will be like firing a shotgun at their supply chains.

Large corporates could take shares in them to secure their finances (and increase wages), stabilising their own supply chains. But what happens if you make parts for 10 companies, one buys in, and demands that you only make parts for them. Not for their competitors.

The switch to inflation will affect Japan rather as Brexit-originated inflation damaged the UK. It will not be pleasant.

Inflation kills more than an economy. It erased a chunk of the LDP's vote and will erase a good deal more in Japan - jobs, employers, retail, services. Demonise deflation all you want. It is inflation that really hurts.

JennieToday  10:41 am JST

I’ve given up on the minimum wage here, and it will be very difficult for small firms to hike their wages. I agree on cutting taxes, especially 10% consumption tax is ridiculously high.

Actually no. 10% is the lowest among the G7 except for a few US states. Other countries are around 20%. But on the other hand they have a much more generous pension system so things are difficult to compare.

My National Health Insurance is about 50,000 yen/month. If they don't reduce this, then no matter what the prices are for commodities won't matter.

Another thing I noticed is that almost every part time job pays apx. 1,000 yen/hr. Whether you're a truck driver, dishwasher, grocery store stocker, cleaner, or barista, it doesn't matter. This is also quite odd.

I’m sure the rest of the story will be, chaired by billionaires and huge corporations to tell the little guy how to do it.

My National Health Insurance is about 50,000 yen/month. If they don't reduce this, then no matter what the prices are for commodities won't matter.

Start a small business and save!

owzerToday  02:11 pm JST

My National Health Insurance is about 50,000 yen/month. If they don't reduce this, then no matter what the prices are for commodities won't matter.

Start a small business and save!

But if he is successful he will end up paying the maximum which is 106,000 per month !

Gov't to set up panel to discuss ways for small firms to hike wages

Here's a thought.

Cut the dead weight workers and excessive pay in the GOVT, first.

You'll have a plethora of extra funds to pay workers then.

That goes for CEOs as well.

Central planning reigns in Japan

owzerToday  02:11 pm JST

Start a small business and save!

Hm. And yet -

owzerToday  08:56 am JST

My business hasn’t been profitable for years. lol

Taken in that context it doesn't sound like such great advice, really.

If they are serious, lowering taxes and stopping the corruption are the only way. Competition will never been encouraged if they keep taking bribes to award monopolies to friends.

Taken in that context it doesn't sound like such great advice, really.

On the surface, yes. But you’d be surprised what you can write off in Japan! And be mostly “unprofitable”

@rakuraku

JennieToday  10:41 am JST

I’ve given up on the minimum wage here, and it will be very difficult for small firms to hike their wages. I agree on cutting taxes, especially 10% consumption tax is ridiculously high.

Actually no. 10% is the lowest among the G7 except for a few US states. Other countries are around 20%. But on the other hand they have a much more generous pension system so things are difficult to compare.

Yeah, and I’m from one of those states so back and forth I pay 10%, while back in CA people earn almost double the salary they make here.