Japan's Minimum-Wage Panel Splits as Labor Seeks Record Increase

Labor and management representatives on Japan's minimum-wage panel remain far apart, the Japan Times reported. Labor representatives are seeking an increase of 75 yen an hour, which the newspaper described as a record demand, while management representatives argue that smaller companies cannot afford it.

Employers cited turmoil in the Middle East and the cost pressures it creates as a reason smaller firms could not absorb a large wage rise. The dispute reflects the broader tension in Japan between rising prices, which push workers to demand higher pay, and the thin margins of the small businesses that employ much of the workforce.

The panel's decision will shape wage floors across the country and feed into the wider question of whether Japan can sustain the wage growth its policymakers have sought.