Friday, March 1, 2013
DJ: Aso Encourages Employers To Boost Compensation
TOKYO--Japan's finance minister on Friday urged business leaders to boost compensation to employees, as part of his government's campaign to lift the economy out of deflation.
Taro Aso, citing recent examples of companies boosting bonuses for employees, said that he is "looking to businesses to boost compensation in some form." He made the remark in a meeting with the Japan Business Federation, or Keidanren.
Mr. Aso stressed that he is not demanding that businesses accept immediate permanent pay raises, but also warned that "private consumption won't grow unless labor's share of income is addressed."
Mr. Aso also said that businesses should use cash, instead of hoarding it, in order to spur growth in the economy. Amid prolonged economic stagnation and periodic credit crunches, Japanese businesses have in recent years become conservative in their attitude and have reined in capital spending.