Prime Minister Yasuo Fukuda urged companies Thursday to raise wages in a rare move by a government leader amid intensifying annual labor-management wage talks.

“I think now is the time when the fruits of reform should be passed on to the people and household budgets,” Fukuda said in a weekly e-mail magazine released Thursday.

Fukuda, who is facing sagging support rates, is apparently seeking to soothe public disgruntlement over hikes in crude oil and materials prices that are putting pressure on household budgets.

Noting that the economy has undergone a recovery in recent years, with major companies making record profits, Fukuda said, “These are the achievements of various structural reforms and the result of efforts by all of you people who struggled with and endured the pain of the reforms.”

Fukuda stressed that pay hikes “will lead to much bigger profits for companies as the economy will expand as a whole if consumption increases through higher wages.”

Companies and household budgets are closely connected, he said.

Fukuda told reporters in late January that improvements in labor conditions are a “plus factor” for household budgets and the nation’s economic situation.
Fukuda stressed that pay hikes “will lead to much bigger profits for companies as the economy will expand as a whole if consumption increases through higher wages.”

Companies and household budgets are closely connected, he said.

Fukuda told reporters in late January that improvements in labor conditions are a “plus factor” for household budgets and the nation’s economic situation.

http://search.japantimes.co.jp/cgi-bin/nb20080307a1.html

In a rare move, Prime Minister Yasuo Fukuda has urged employers to raise workers’ wages as Japan’s economy continues to expand.

“Now is the time when the fruits of reform should be passed on to people as wages,” he said in his e-mail magazine delivered on Thursday.

“Japan’s economy has been growing over the past several years. Businesses, particularly major companies, are making big profits well above those during the ‘bubble economy.’ These are the results of efforts made by people who endured the pain of structural reform and worked hard,” he said.

Fukuda pointed out that companies will profit if they raise wages for workers and increase consumer spending. “I believe that business leaders also feel the necessity of wage hikes. The government has urged top business leaders to increase wages.”

http://mdn.mainichi.jp/national/news/20080306p2a00m0na005000c.html