Uniqlo parent Fast Retailing Co gives jolt to Japan Inc with 40% wage hike

The move by the firm is likely to heighten focus on worker pay ahead of annual spring labour negotiations

salary, jobs, employment, check, letter, interview, companies, wage, income
Representative image
Reuters
1 min read Last Updated : Jan 12 2023 | 12:46 AM IST
Uniqlo parent Fast Retailing Co Wednesday said it would raise wages by as much as 40 per cent, a clear sign that Japan’s rock-bottom salaries may be starting to budge after decades of deflation and cost-cutting.
 
The move by the firm is likely to heighten focus on worker pay ahead of annual spring labour negotiations. But it looks unlikely that the rest of Japan Inc will deliver increases on the same scale.
 
PM Fumio Kishida has repeatedly called for firms to increase wages, a plea that has gained urgency as prices have surged, leading to increases in the cost of everything from food to fuel.
 
The poor state of pay has become a problem for the world’s third-largest economy. In dollar terms, average annual pay in Japan was $39,711 in 2021, well below the OECD average of $51,607 and little changed from the early 1990s.
 
“Fast Retailing aside, there have been a number of companies that up to last year have significantly boosted their rate of pay increases. That’s a positive factor for the economy," said Taro Saito, executive research fellow, NLI Research Institute.


One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :lifestyleWages

Next Story