(March 10): Japanese Prime Minister Shigeru Ishiba called on unions and companies to boost workers’ pay, just as their annual pay negotiations are set to heat up this week.

“I would like to ask both labour and management to cooperate in achieving a significant wage increase, building on the momentum of last year, which was the highest level in 33 years,” Ishiba said at an economic panel meeting on Monday.

His comments come as workers and their employers are deep in wage negotiations all week. The discussions are being closely watched by the government and the Bank of Japan as authorities view wage gains as a key determinant for achieving a positive economic growth cycle.

Japan’s largest trade union federation, Rengo, said last week that workers are asking for an average 6.09% pay increase this year, the highest in more than three decades. Many businesses are expected to respond this week, with Rengo set to release its initial tally of pay agreements on Friday.

Ishiba also said the government will put together a plan to increase the minimum wage. Their goal is to increase Japan’s minimum wage to ¥1,500 (US$10.19 or RM45.14) per hour within the next five years, which would require raising it by more than 7% each year from the current ¥1,055.

The premier added that the government “will ensure thorough preparations” to guard against a sharp rise in long-term yields and growing uncertainty in the global economy. Japan’s benchmark 10-year government bond yield rose to its highest since 2008 on Monday.

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