Japanese metallurgists resist government pressure to raise wages

Fewer than 20 percent of Japanese corporations have expressed support for Prime Minister Shinzo Abe's call in January for an increase in base salaries in the coming fiscal year. According to Reuters, this proves that Abenomics is still trying to gain traction.

Companies such as Toyota Motor Corp have decided to raise wages, but Nippon Steel & Sumitomo Metal Corp has said it would not. As a last resort, they are ready to increase the bonus allowance to the official salary.

The unwillingness to raise basic salaries in metallurgy speaks to the uncertainty of Japanese steelmakers in the success of Japan's new economic policy.

While bonuses averaged 17 percent of all payouts, a Reuters poll showed a drop in the purchasing power of the Japanese population.

Only 11 percent of companies said they are willing to raise wages enough to offset the 3 percentage point increase in sales tax, which comes into effect on April 1 and will primarily affect the population.

Earlier it was reported that trade unions demanded from metallurgical companies to renegotiate new collective agreements, taking into account the compensation of growing costs. At the same time, they insist that compensation take place precisely in base salaries.