Keidanren sees pay hikes across board as unrealistic amid pandemic

Japan's most powerful business lobby Keidanren said Tuesday that it views basic pay increases across all sectors as "unrealistic" in annual wage talks, as the coronavirus pandemic has hit some firms and industries harder than others.

If you want to look at the hideous face of unrestrained capitalism, look at Keidanren.

Of course they say that. But very quiet about their huge cash reserves.

Pay Rise??? People are struggling ,They are losing their jobs, Let alone pay rise.

it looks to become worst in future..Don't ask pay rise and forget about it,Keep calm and Work.

Pay hikes were unrealistic in a good economy. Now they are trying to use the pandemic as an excuse for finding them unrealistic now? They were unrealistic a year ago, two years ago, and even four years ago. There wasn't a pandemic then.

For those companies benefiting from increased earnings, a base pay hike should be "an option," according to the guidelines.

Profits rose for decades with no pay raises.

Now the pandemic has just made the exploitation more naked.

The focus on shareholder value is sociopathic in 2021.

We all know what's going to happen. Pay hikes for the rich and connected top 10%, with the rest of the population seeing their wages and wealth eroded by the inflation that the government wants to create (and really is happening; just go to the supermarket).

Of course not. Their neoliberal business model is wage suppression, regardless of the economic circumstances. They don't give substantive wage rises in good times or bad times.

This is why universal basic income is essential, lest the population be plunged back into poverty.

Yeah... Keidanren sees it only for CEOs, politicians, and other leading business figures.

Agree strongly with all above!

Of course not. Their neoliberal business model is wage suppression, regardless of the economic circumstances. They don't give substantive wage rises in good times or bad times.

This is why universal basic income is essential, lest the population be plunged back into poverty.

Absolutely! Well said Jeff!

Yeah... Keidanren sees it only for CEOs, politicians, and other leading business figures.

exactly!

The focus on shareholder value is sociopathic in 2021.

It's not even that. J-inc listed companies are notoriously mean with shareholder returns. You go to any listed company's website, click on the IR section and read their policy on dividends. Invariably, you'll find the policy focuses more on the need for maintaining internal reserves (if you read between the lines; it's usually expressed as something like "Our policy on shareholder dividends is to provide a stable dividend........while making a comprehensive consideration of our need for internal reserves for capital expenditures and other spending...)

There has to be flexibility in salary and bonus increases, for companies that have be able to adapt to the pandemic and increased their turn and profitably. The pay rises must reflect staff that have are loyal and dedicated to roles and duties, even if modest.

Many in the tech industry must, pass on and share, recognize staff/employee contribution.

annual wage talks

It’s amazing that this inefficient, centralized process of discussing wages even exists at all.

Workers would do better for themselves to dump this collectivist stuff and instead negotiate better wages individually - Japan could get a real boost if there were a greater culture of job hoping, but the culture is one of group-orientation...

Their neoliberal business model is wage suppression, regardless of the economic circumstances.

Wait on, in a neoliberal model, isn’t it free market supply and demand that is supposed to determine prices and wages?

Not collectivist, centralized wage negotiations like this.

This is not my father’s idea of neoliberalism!!

It is only unrealistic if you don't believe workers are assets and belong to that "lifetime" type of company philosophy. 

That’s right!

Unless people are willing to change jobs they won’t have much luck securing significantly better wages, and this suppresses wages across the board, as companies need not pay more if their workers are not quitting and moving to greener pastures.

 isn’t it free market supply and demand that is supposed to determine prices and wages?

Yes, it should be. Unfortunately, the supply-demand dynamic no longer functions when it comes to private-sector hiring. That's why wages remained low even during a severe labor shortage. The weakened power of negotiation by labor unions is a major factor.

And it is much more realistic after the pandemic? lol

Keidanren has been the puppet child of Western capitalists and concubine of Chinese/Vietnamese Communists since the 1990s.

They advocated for disastrous reforms that neoliberalized Japan into a hellish landscape that appeases Western shareholders. Additionally, they obeyed the Western masters to successfully de-industrialize Japan for the sake of building cheap workshops in China and Vietnam.

The Keidanren businesses received massive bribes from China and Vietnam, so the human rights issues won’t ever get conjured in the West. Keidanren actively enabled the cloaking of these issues in China and Vietnam, and we recently know them because European NGOs fought hard to get the truth out. The Xinjiang genocide has been going on for years, and the Keidanren played a role of facilitating the gospel of economic growth in China to cloak the genocidal truth.

Now, they actively go against better wages for Japanese people. I am not surprised because the “Great Evacuation” is almost complete where all big, productive Japanese businesses will evacuate to China and the SEA. Leaving Japan into a desolate, poor place - exactly the same thing in the American Rust Belt. The Western elites can finally establish another “London” in Japan to launder corporate stock profits at will but solely focusing in Asia.

@dagon

The article reminded me of a chapter in Book 1 of Das Kapital by Marx entitled "The Working Day" which discusses this issue (trading of one's time for labor). Unfortunately many believe Marxism and Capitalism are mutually exclusive. Not really.....Marx actually published some of the greatest writings about Capitalism and analyzed both the good and the bad.

In the 3 books, 2 of which were published after his death but were published from his notes and research, Marx provides an excellent almost Nostradomos like predictoin of the evolution of Capitalism.

I am a Capitalist and a business owner however your reference to "unrestrained capitalism" is spot on. Capitalism will work well when checks and balances are maintained in place to prevent abuse.

Unfortunately many Capitalist countries/societies are following the predictions of Marx where the Capitalist system eats itself alive. It is too bad because a capitalist society with a twist of socialism blended in is probably the best mechanism to bring the standard of living up for the overall population. However in Japan as well as many other nations (especially my country of citizenship, the U.S.) the cycle predicted by Marx occured and actual wages have stagnated, real wages have fallen dramatically and the wealth gap has widened.

From the Western (non Confucian perspective) what happens next is societal upheavel by revolution or other means. We are no better than Russia in the early 1900's or Germany in the 1920's. When a huge mass of people are disenfrancised and are at the point where there is little to lose it is a very dangerous situation. This would lead to turmoil and revolutionary activities in the west; in the east (i.e. Japan, China. South Korea) I am not so sure.

We live in interesting times in so many ways.