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HomeEconomyUniqlo boss gives Japanese firm 40% pay rise

Uniqlo boss gives Japanese firm 40% pay rise

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TOKYO (Reuters) – Uniqlo parent Fast Retailing Co said on Wednesday it would raise wages by more than 100%. up to %, a clear sign that after decades of deflation and cost-cutting at the bottom of Japan, wages may be starting to move.

The casual apparel giant’s move is likely to sharpen its focus on worker compensation ahead of the annual spring labor talks, although other companies in Japan appear less Possibly offering growth of the same size.

Prime Minister Fumio Kishida’s repeated calls for companies to increase wages have become more urgent as prices have soared, resulting in cost increases that were once unimaginable Everything from food to fuel.

Poor wages have become arguably the biggest problem facing the world’s third-largest economy. In US dollars, the average annual salary in Japan is $10,225 exist400, well below the OECD average $10, s.

” Fast Retailing aside, as of last year, several companies have significantly increased salary increases. This is a big deal for the Japanese A positive factor for the economy,” said Taro Saito, an executive researcher at NLI Research Institute.

However, he cautioned that Fast Retailing’s case is a sharp increase in the case of a company that can afford it, which is the case for many other Japanese companies nothing.

Fast Retailing’s move marks at least in

years, the company has been in business for more than 3 years, 50 Global Clothing Stores will revise the remuneration for the entire group’s rations, said spokesman Pei Zhidong.

The change is aimed at making the way companies work and pay more globally competitive, she said, adding that there was an “urgent need” for higher wages in Japan, Wages in Japan have always been low compared to overseas operations.

From March, fresh graduates will be paid 36, Yen ($2, ) one month ,Compared with, Yen, representing an annual increase of approximately %, the company said. New store managers will see an increase of approximately 03% arrive51, One month yen, it said.

Price increase

Some product prices have increased due to higher material and shipping costs. This year it raised prices on wool goods and down jackets in its autumn and winter collections, which is seen as a turning point for consumers.

Uniqlo can meet the Japanese consumers’ eager demand for relatively high quality and low price, making it famous for its “cosupa” (cost-effective ) and become the manufacturer of 2, 132 Yen fleece jacket and 3,178 yen selved jeans became a global retailer and made founder Tadashi Yanai the richest man in Japan.

However, like other Japanese companies, it is also grappling with the shortage of domestic labor resources. shrinking.

“We believe this may be due to inflation and a tight labor market in Japan,” said a Lightstream Research analyst who publishes on the Smartkarma platform Oshadhi Kumarsasiri said.

“Furthermore, the company’s aggressive expansion plans in markets such as the US and Europe meant that they needed to deploy some well-trained senior staff from Japan Get into those markets.”

Fast Retailing’s overall personnel costs in Japan will increase by about % from the previous year, spokesman Dong said, taking into account the increase in hourly wages for part-time workers, as well as the costs absorbed by productivity gains.

Meanwhile, beverage maker Suntory Holdings said it was considering raising wages by more than 6 percent, while Honda Motor Co Ltd said it would Want to “aggressively” address wage increases.

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