June 30, 2013
Editorial excerpts
The Labor Ministry’s Central Council on the Minimum Wage will start discussing its annual recommendation for revision of regional minimum hourly wages on July 2. As the government led by Prime Minister Abe Shinzo in the growth strategy stated that it “will make efforts to increase minimum wages,” Labor Minister Tamura Norihisa has announced that he will call on the council to recommend a minimum wage increase. The overcoming of the current deflationary economy is impossible without a substantial wage hike. A minimum wage increase will have a significant impact on pushing up the wages of all workers. The need now is to strengthen public movement to have the government do what it says it will do.
Increase minimum wage to adequate level
In order to “contribute to stabilizing workers’ living conditions and promote the sound development of the national economy,” a minimum amount of hourly wages are guaranteed by the law under the minimum wage system.
The amount of the regional minimum wage is determined by the labor minister based on ministry council’s discussions. At present, the average minimum hourly wage in Japan is 749 yen. Even though hourly workers work 1,800 hours on a full-time basis a year, they only receive an annual income of 1,348,000 yen.
Workers and unions are calling for an increase in minimum wages to 1,000 yen or more. Even if this demand is realized, workers will only earn 1.8 million yen in a year after putting in 1,800 hours of work. This minimum wage level falls short of ensuring minimum standards of living for workers.
In contrast, in most Western nations, the minimum wage level has already been set at more than 1,000 yen per hour. These countries have worked to raise the level as they recognize the minimum wage as a pillar of measures to reduce social inequality and boost the economy. Japan’s labor minister should decide to respond favorably to workers’ demands for a minimum wage hike of 1,000 yen or more.
Meanwhile, under the current minimum wage system, which is not designed to apply a uniform minimum wage rate across the nation, a gap in regional minimum wages has become an issue. In 2002, the difference between Tokyo, with the highest rate in the nation, and Okinawa, with the lowest minimum wage rate, was 104 yen. A decade later, the difference between Tokyo and the lowest rate prefectures, including Kochi, increased to 198 yen.
It is the government that will determine the minimum wage table. Whether to increase it or not depends on the prime minister’s position on this issue.
The Labor Ministry’s Central Council on the Minimum Wage will start discussing its annual recommendation for revision of regional minimum hourly wages on July 2. As the government led by Prime Minister Abe Shinzo in the growth strategy stated that it “will make efforts to increase minimum wages,” Labor Minister Tamura Norihisa has announced that he will call on the council to recommend a minimum wage increase. The overcoming of the current deflationary economy is impossible without a substantial wage hike. A minimum wage increase will have a significant impact on pushing up the wages of all workers. The need now is to strengthen public movement to have the government do what it says it will do.
Increase minimum wage to adequate level
In order to “contribute to stabilizing workers’ living conditions and promote the sound development of the national economy,” a minimum amount of hourly wages are guaranteed by the law under the minimum wage system.
The amount of the regional minimum wage is determined by the labor minister based on ministry council’s discussions. At present, the average minimum hourly wage in Japan is 749 yen. Even though hourly workers work 1,800 hours on a full-time basis a year, they only receive an annual income of 1,348,000 yen.
Workers and unions are calling for an increase in minimum wages to 1,000 yen or more. Even if this demand is realized, workers will only earn 1.8 million yen in a year after putting in 1,800 hours of work. This minimum wage level falls short of ensuring minimum standards of living for workers.
In contrast, in most Western nations, the minimum wage level has already been set at more than 1,000 yen per hour. These countries have worked to raise the level as they recognize the minimum wage as a pillar of measures to reduce social inequality and boost the economy. Japan’s labor minister should decide to respond favorably to workers’ demands for a minimum wage hike of 1,000 yen or more.
Meanwhile, under the current minimum wage system, which is not designed to apply a uniform minimum wage rate across the nation, a gap in regional minimum wages has become an issue. In 2002, the difference between Tokyo, with the highest rate in the nation, and Okinawa, with the lowest minimum wage rate, was 104 yen. A decade later, the difference between Tokyo and the lowest rate prefectures, including Kochi, increased to 198 yen.
It is the government that will determine the minimum wage table. Whether to increase it or not depends on the prime minister’s position on this issue.
