appearances are saved. At the end of spring wage negotiations, called "shunto" 1, the big names in Japanese industry – Toyota2, Nissan3, Honda4, Panasonic5 and Hitachi6 – agreed to significant wage increases thus fulfilling the wishes of Prime Minister Shinzo ABE7. This funding boost is a unique force for six years. The revaluation of wages at Toyota reached 7.6%, the largest increase in 21 years!
Chief urged the Japanese government for months the union bosses Keidanren to increase wages, hoping to trigger price increases that would end fifteen years of deflation . He even called in a recent article, a "cons-Wassenaar," the name of a wage agreement reference passed in 1982 in the Netherlands between employers and unions which limited wages, so the price to stop the inflation.
Rising wages is the sine qua non for the success of "Abenomics8" stimulus policy desired by Shinzo Abe. For its part, the Minister of Industry Akira Amari threatened "retaliation" companies that are not generous "despite rising profits, despite tax cuts." Hibiya Park in Tokyo, a place of trade unionism, float week banners calling for "a real wage increase."
Large companies have fulfilled their obligations by granting generous pay increases. Toyota thus increased base salaries by 0.8% and added Seniority revaluations returning to an increase of 7.6%. But this generosity was confined to exporting companies, which have a real debt Shinzo Abe: since arriving there 15 months, the yen was down, which automatically inflated profits. Increase in VAT
The Toyota Group increased its operating profit 1.03 trillion yen (€ 7.2 billion) in April-December 2013, of which 800 billion comes directly from the currency effect. Giant Nagoya sold fewer cars than last year over the same period.
Whatever increases granted by the great figures of Japanese business, they will likely not pass to SMEs, which account for 70% of employment Japan and camped on their restrictive wage policy. The application does not re-launches, and they have no reason to obey the instructions of the Prime Minister. "Rising wages can not be decreed," recalled Patrick Artus, Natixis, during a recent visit to Japon9. Nationally, the wage increase should not exceed 0.5% this year.
In 2013, despite the exhortations of Shinzo Abe, wages fell by 0.7%, for the first time in four years. "The increase in demand causes only a very low pressure of rising wages," says Hiromichi Shirakawa, Credit Suisse. The trap dreaded Abe is now closing in on him, inflated by the rising cost of energy and raw materials, prices rise faster than wages, harassing demand. The increase in VAT from 5 to 8% 1 avril10, new whammy demand is expected with terror by the Abe government. The Tokyo Stock Exchange also closed sharply down 2.59%.A person can access the Internet for life insurance rates or can directly communicate with companies that offer appropriate policies.