- Spring Labor-Management Wage Negotiations
- Joint Press Conference with Incoming Chairman Candidate Tsutsui
- Politics
- Real Wages
- Court Order to Dissolve former Unification Church
Spring Labor-Management Wage Negotiations
(In response to a request for comment on the outcome of the 2025 survey released by Japanese Trade Union Confederation (RENGO) on wage negotiations, pointing to wage growth above the hikes recorded the previous year) According to both the first and second tallies compiled by RENGO, wage growth this spring has reached a high level, outstripping even the rate seen through the same period last year. Notably, the year-on-year rate of wage growth among small and medium-scale labor unions with less than 300 members has been higher than that for RENGO's membership as a whole, suggesting RENGO itself senses the drive for higher wages has had a certain measure of benefit.
Although we will need to assess how this trend pans out for the corporate sector as a whole, with attention to the outcome of wage negotiations among many SMEs that are only now entering full stride, my impression is the pace of hikes is off to a great start this year. I anticipate we will see further convincing evidence that the push for wage hikes has gained lasting momentum.
Joint Press Conference with Incoming Chairman Candidate Tsutsui
(In response to a query seeking impressions drawn by the Chairman from the joint press conference held with incoming chairman candidate Yoshinobu Tsutsui) I was pleased by Mr. Tsutsui's remarks. Given the conspicuous decline in the ability to foresee trends both at home and abroad, the most important thing now is that we have a grasp of the total picture and the capacity to weigh things from a medium- and long-range perspective rather than being preoccupied with the optimization of specifics. In his remarks, Mr. Tsutsui touched on both of these expectations, reinforcing my impression that Keidanren has tapped a candidate well-suited to serve as its next chairman.
(In response to a question regarding unmet challenges the next chairman of Keidanren should be expected to shoulder) Developing a virtuous cycle of growth with the distribution of wealth is one challenge that must be achieved. We cannot have economic growth without a healthy society; hence, debate must address the issue not only of growth, but also the balance of wealth. When capitalism is allowed to go too far, it can result in a "winner takes all" reality, and in fact, clear disparities now exist worldwide. Conversely, balancing wealth is something that cannot be achieved without economic growth, hence the importance of fostering a virtuous cycle. I want Mr. Tsutsui to adopt this perspective when he takes the helm at Keidanren.
Politics
(In response to a question regarding Prime Minister Ishiba's handout of 100,000-yen gift vouchers to rookie Liberal Democratic Party lawmakers in the Lower House) Although views are mixed on whether they constitute a violation of the Political Funds Control Act, one problem with the Prime Minister's actions is that they seem somewhat lacking in common sense. Given the importance of avoiding even impressions of misconduct, this is a bit disappointing.
Although Prime Minister Ishiba appears to have provided a thoughtful explanation of his actions, he has stated his readiness to further explain matters in a different forum should he be unable to win enough understanding. Depending on who you ask, conclusions will vary as to whether the Prime Minister has adequately explained himself, but I would like him to continue trying to provide a thoughtful and sincere explanation.
Real Wages
(In response to a question regarding an opinion expressed during the March 24 meeting of the Council on Economic and Fiscal Policy, to the effect that a "total" number including imputed rent for homeowners also should be utilized as a price indicator in the calculation of real wages) The definition of "prices", as applied to the inflation target of 2% considered appropriate by the government and Bank of Japan, is a total that includes imputed rent for homeowners, similarly to the price indices used in other countries. However, the calculations of real wages utilized in the government's Monthly Labour Survey rely on a total that excludes imputed rent. Any debate over inflation thus needs to be shaped by an understanding of which numbers the indicator is being based on.
I believe the government is preparing to deliberate in earnest on the questions of whether it should adopt a unified perspective on this and how it should present the information to the public.
Court Order to Dissolve former Unification Church
(In response to a question seeking the Chairman's take on the Tokyo District Court order demanding dissolution of the former Unification Church, following a request by the Minister of Education, Culture, Sports, Science and Technology that the sect be dissolved) From the standpoint of guaranteeing freedom of religion, strict procedures are put in place regarding court orders demanding the dissolution of a religious corporation. The former Unification Church was deemed to be in violation of the law and to have caused serious harm to public welfare. Illegal actions under the civil code were also likely interpreted as legal violations.
Support for its victims amounts to another important issue. I want to see the government follow through with all-out efforts to help the victims.