Japanese PM Shinzo Abe writes that there is a pleasant “wage surprise” on the way:
The year 2013 saw the Japanese economy turn the corner on two decades of stagnation. And the future will become even brighter with the appearance of what we are calling the “wage surprise.”
Intensive discussions since September among Japanese government, business, and labor leaders have been geared toward setting in motion an upward, virtuous cycle whereby increased wages lead to more robust growth. I have taken part in two of the four meetings so far, joining our finance minister, economy minister, and labor minister, as well as industry and labor leaders like Akio Toyoda, the head of Toyota Motors, and Nobuaki Koga, who leads the Japanese Trade Union Confederation. Each time, I have come away from the meeting feeling confident and invigorated.
Abe goes on, saying:
- Japan’s companies are no longer poorly capitalized
- Thanks to the continued surge in corporate profitability and firms’ sustained deleveraging efforts during the last decade and a half, indebtedness has fallen dramatically. In terms of the net-worth ratio, corporate Japan is now on a par with Europe and the US
- Abenomics … we have rebooted Japan’s collective psyche
Abe then goes to explain how a compact “between government, major industries, and organized labor should work together to increase wages and bonuses (while facilitating incentives that could enhance productivity)”
All sounds great!
But, companies are saying … not so fast, sir.
Leaders of the country’s most influential business lobby, the Japan Business Federation, said they are encouraging companies to increase salaries. But while few top executives were willing to disagree with this worthy goal at a New Year party Tuesday, many remained noncommittal.
“Wage surprise”. i’m waiting for that to go viral like ‘Abenomics’ has.
