Rising labor costs biggest threat to Japanese firms in Asia: survey


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These companies are just worried that they will FINALLY have to start paying a living wage to the people who have made them so much cash up to now!

Japanese workers have been working for companies that are making record profits but "we" the workers have not seen any negligible wage increases in at least a decade or more! The raises have been pitiful and are eaten up by increased taxes and daily cost of living increases.

Quit your bitchin and start paying people what they are worth!

1 ( +1 / -0 )

Rising labor costs and skilled labor shortages are the largest downside risk to Japanese firms operating in Asia

So those firms only rely on cheap labor and long overtime all this time. Once cheap labor is gone they out of business.

8 ( +9 / -1 )

As above paying a liveable wage, cutting out "voluntary " overtime would force most of these profit making mismanaged companies out of businesses. The surfs who are working (the idea seems to be) should be so grateful they have a job and are given pocket money and all that's asked for is an extra week a month of free work. Next thing you know companies will be getting a tax cut, while the surfs get a tax rise? OH...

3 ( +4 / -1 )

Could this be another one of those dubious data surveys?

3 ( +3 / -0 )

They are just worried about paying a decent salary. The only reason these companies moved their operations overseas was to reduce labor costs and increase profits through paying crappy salaries. Many Japanese industries have moved their manufacturing offshore, but domestic prices have increased. This is just another aspect of the unscrupulous and corrupt Japanese business culture.

7 ( +8 / -1 )

Globalization is a race to the bottom. If Japanese workers at home were paid more, they'd spend more, generating higher levels of consumption and boost GDP growth, raising the tide for everyone, as opposed for only the millionaires.

Trade's economic contribution is grossly overstated. If it weren't, highly competitive Mexico would be an economic superstar.

5 ( +6 / -1 )

The captalism virus may soon be dead. Ended by the population cliff. They still have a bit longer to run however considering the population in Africa.

-1 ( +0 / -1 )

For the last 30-40 years they have been searching for low cost countries for their manufacturing bases - Taiwan, South Korea, Thailand, Indonesia, China, Vietnam, Philippines, now Laos and Cambodia. As the investments have causes the skill levels and economies of these countries to grow, they have become competitors, and Japan has had to look further afield for the next poor country. In the long run, not so cheap, and not such a good strategy.

As others have written, maybe it was better to have kept it at home, and supported your own economy.

1 ( +1 / -0 )

The average Japanese on placement in Thailand will have many perks:a car with driver, free apartment, education in a Japanese school for the kids etc.

The Thai factory worker might receive 2000 yen a day or less and come to work on the bus.

Vietnam has even lower costs for Japan Inc.

Such low salaries are hardly a ‘threat’- corporate greed most certainly is though !

5 ( +5 / -0 )

Japanese workers have been working for companies that are making record profit

The article is not about "Japanese workers" but local workers in Japanese operations in South East Asian countries.

For better or worse the pursuit of cheap labour abroad is not a peculiarity of Japanese companies. Moving factories out of the US in pursuit of cheap labour has been one of the issues that Trump has repeatedly exploited.

1 ( +1 / -0 )

A Close friends son has built up a very successful mid-size company over the past 16 years. It's become a real family affair with everyone involved and 150 workers in Japan.

Most base production was moved to China years ago, then to Vietnam where most production now occurs. Last year they set up in Myanmar with 1 small operation. They expect this to grow greatly.

The son told me recently that his Vietnamese workers (and now Myanmarese) feel so lucky to be working for a Japanese company. He said it's a "status symbol" for them amongst their fellow citizens. He also said they pay above the local rates to get and keep good workers. He didn't tell me what this rate is compared to Japanese wages and conditions, but I assume it's a fraction. He said many of the younger workers dream is to come to Japan to work. i was surprised when he said that the main language of communication in his Vietnam plant was Japanese not English. I asked why and he said they all have and continue to study and work so hard to make their way, to fulfil their dream.

In his cut-throat small margin industry, China while still important has priced itself out of his production market. So he's looking to consolidate and build for the next few decades within Viet & Myanmar. And an interesting point he said to me was that Vietnam & Myanmar are historically Buddhist countries, so the peoples mind, manner and temperament match Japan.

As the global industry oven heats up, it's will all be very intriguing to see where the labor pizza is best baked.

2 ( +2 / -0 )

The average Japanese on placement in Thailand will have many perks:a car with driver, free apartment, education in a Japanese school for the kids etc.

Indeed. And then there was a certain French placement in Japan who was making (Bloomberg data) $343,000 per week (emphasis on per week) until he got busted in December coming off his $60 million dollar company provided jet. In addition Nissan had bought him posh apartments or condos in Brazil, France, and Lebanon as well as paying the rent for an apartment in an extremely high priced part of Tokyo.

0 ( +1 / -1 )

Capitalism has an answer - pay the workers more, give better benefits (euro style vacations and maternity/paternity leave anyone?)

3 ( +3 / -0 )

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