politics

Gov't moves to defuse argument over urban-rural wage gap

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The government is more worried about what business, companies think then how people struggle. Raise the minimum wage nationally as it's currently one of the lowest in the OECD. If a business can't do it then it's not a viable business and needs to be replaced. To get a 2% growth rate people need a decent wage that allows them to have some extra cash to spend! The current model has 60% of wage earners working for less then ¥1,000 an hour. That's barely enough to survive as an individual and no where nearly enough to support a family. LDP are just not intelligent enough to grasp basic logic.

10 ( +10 / -0 )

Cricky, Totally agree. The minimum wage rate in Japan is right at the bottom of OECD countries. Coupled with high prices in Japan, a person can't live properly on such a low wage and also be expected to be able to pay in to the pension and health system.

The wage rate should not be regional but be the same across the whole country as it is in other developed countries. Some people will argue for example that fast food businesses will go broke if they have to pay workers more. Prices would have to be raised by a small amount per item or service to cover an increase of wages which really isn't a big deal. I have seen plenty of things in Japan go up in price without higher wages paid.

Also, doesn't the government realise that they will take in a bit more tax with a higher wages ? One thing that concerns me is that when foreigners come to work in Japan, they will work at the same rate as Japanese people many of whom are working low wages at jobs requiring skills beyond the capability of outsiders. Would this be fair ? This is the result of part time and contract jobs that many Japanese are forced to be employed at with no benefits as those working full time enjoy.

In Japan in many jobs, people unless re-employed by the company that they work for after 5 years have to leave for so many months and find other work. I know of people that have been taken back after this time and now working at a lower wage than before for the same work at the same company. This is Japan !

3 ( +3 / -0 )

Setting high minimum wages will make many businesses bankrupt. Look at the USA with Socialist Bernie Sanders pushing for $15 minimum wage. Unsustainable. I believe in Market forces, NOT socialism. High salaries would just lead to high inflation, as people have more disposable cash to spend on wants. A cap on working hours make more sense for welfare of workers.

-5 ( +2 / -7 )

@Cricky and Vic.m

Japan has one of the highest minimum wages in the OECD. It’s currently ranked 11th. It’s also higher than the national minimum wage in my home country. USA.

The current issue with those companies in the rural areas is that they are not making profits. The main reason is that most people are moving to cities so less people are spending money out in rural areas. If they increase the minimum wage, it won’t necessarily make people move to the rural areas as the wage would also increase in the city. Also, it would lead to increase costs for already struggling businesses. More workers or higher paid workers doesn’t equal profit. This could actually speed up bankruptcy among small businesses and rural business that cannot compete with city areas and larger businesses.

0 ( +2 / -2 )

Acccording to the OECD here are the current rank of the first 14 countries. Prices are in USD$

Luxembourg $11.5

Australia $11.3

France $11.3

Germany $10.6

Belgium $10.1

Netherlands $10

New Zealand $9.5

Ireland $9.3

United Kingdom $8.7

Canada $8.4

Japan $8

United States $7.3

Slovenia $6.8

Spain $6.5

There are 34 Countries in the OECD.

2 ( +2 / -0 )

Do we have to explain what other developed countries do again?

1 ( +1 / -0 )

Canada's isn't national but still higher. Denmark has had great success with $20/hr making conservatives apoplectic. In that list that's wages not including Healthcare and other benefits like a just announced carbon tax rebate we'll get starting this year. I'll just guess Japan doesn't have that either. Japan needs to improve labour relations no reason to always be last

2 ( +2 / -0 )

JJ Jetplane,

You call Japan high minimum wage at no.11 ? You need to also take in to account purchasing power. USA goods are much cheaper than Japan and in actual fact, you can buy certain food items from USA delivered to Japan miles cheaper than equivalent Japanese products.

In the case of New Zealand which has a good living wage for the economy, prices are cheaper than Japan. Example, food products, electricity, gas, no compulsory pension payments, (free to pay in private system) Live 5 years in NZ and everyone can retire with Superannuation, ( pension) Granted, GST (consumption tax) is 15%, but the Gov. returns to the citizens through welfare and pension. Also an accident compensation system for everyone.

6 ( +6 / -0 )

There is no perfect system. But some of the biggest issues I’ve noticed since living here are that costs are unreasonably high when compared to the salary. Also, minimum wage in other countries are put in place more to protect part time workers. But in Japan, I feel as if the pay for full time workers is equivalent to that of part time workers. Also the expectations of long hours and valuing work life over personal life.

The cost of buying a home, a car, and transportation in general are high in Japan.

4 ( +4 / -0 )

sf2kToday  11:31 am JST

Do we have to explain what other developed countries do again? ------------------------

Yes. Otherwise nothing will change in Japan. 30 years ago, Japan was booming and everyone was doing well. What happened then ? It has to be wages.

1 ( +1 / -0 )

@vic.M

i was disputing the part where everyone kept saying it was near the bottom.

Purchasing power is a completely different thing. Japan has horrible purchasing power.

Back in the USA, between my car payment, insurance, and gas every month, it was still cheaper than paying for public transportation each month in Japan. My car had a V8 and was a gas guzzler.

Some of the things I look at for purchasing power in Japan is the cost of vehicles that are available in both markets. Base models for certain Japanese cars begin around $18k. The same Japanese car begins at $13k in the USA.

3 ( +3 / -0 )

In fact it will hurt smaller businesses and make jobs scarcer.

If a company can't exist without slave labour wages then it has no business being in business. This actually robs the market of a real business based on value, not price

0 ( +1 / -1 )

if you can't afford the wages then you can't be in business and you can't afford to work there either. It's about ability to live a company

1 ( +1 / -0 )

versus

0 ( +0 / -0 )

ability to live versus a company

0 ( +0 / -0 )

If business can't pay enough, then owner should make the employee an equity partner. If 5 workers (including former single owner), each gets 20% of the profits of the business, for example.

0 ( +0 / -0 )

What I am concerned with here is, "Cheap Foreign Labour" vs "Foreign National Employees - not necessarily cheap".

Both should not be lumped into the same camp.

0 ( +0 / -0 )

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