Corporate Japan Pledges Wage Rise Asks for Reforms

Japanese business leaders have promised Prime Minister Shinzo Abe to do their “utmost” to raise wages and allow suppliers to pass on higher costs, while also urging him to push through labor reforms, said a draft agreement between the government, business and labor groups.

Abe and business leaders, including Sadayuki Sakakibara, chairman of Toray Industries and the Keidanren business lobby, are scheduled to announce the plan on Tuesday after a meeting in Tokyo, according to a draft seen by Reuters.

The agreement, the broad terms of which were first reported by the Yomiuri newspaper on Saturday, were hammered out in advance of the election landslide that returned Abe and his ruling coalition to power on Sunday.

Wage growth is crucial to the success of the “Abenomics” agenda aimed at breaking a cycle of slow growth and deflation through monetary and fiscal stimulus and pledges of structural reform.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza