Minimum wage of this fiscal year and overview of Japan's minimum wages
          
  
          
        
        Japan's minimum wage system was established based on the Minimum 
  Wage Law. Under this system, the government determines each year the 
  wages which enterprise owners must minimally guarantee in order to raise 
  the working conditions of low-wage workers, and to ensure the stability 
  of their lives. Minimum wages come in two types: region-specific minimum 
  wages set up by each region, and industry-specific minimum wages that 
  apply to laborers working in specific industries.
    As for region-specific minimum wages, the Central Minimum Wages 
  Council has since 1978 been conducting yearly fact-finding surveys on 
  workers' wages. Based on the findings, the Council indicates a rough 
  standard/criteria for revising the wages so as to make the wage level 
  more or less unified throughout Japan.
    In July, the Council submitted a report to the Minister, advising 
  that, for FY2002, wages should basically be maintained at the current 
  level, and that it would be appropriate not to indicate any wage revision
   standard/criteria.
    The report reflects the worsening employment and unemployment 
  conditions that seem to linger on. It also placed importance on the 
  findings of a fact-finding survey on salaries provided in the private 
  sector, in which about 60% of the companies either did not raise 
  workers' wages or actually reduced them. It is the first time that 
  the Council has released a report recommending a virtual zero-wage hike.
    Last year's wage hike rate which the Council had released as their
  criterion was 0.68%, an all-time low. In response, Council members 
  representing labor (such as Rengo officials) insisted that, with the 
  share which part-time workers account for in total employment continuing 
  to increase, raising the minimum wage was important to support the 
  unstable wages of these part-time workers and to help out in case 
  unfair wage differences exist. Meanwhile, Council members representing 
  the employer side (such as the Japan Business Federation) insisted 
  that wage reduction was appropriate. As can be seen, a large gap in 
  views existed between the labor and the management, and consequently, 
  this year's report shows the views of neutral, public interest Council 
  members such as those from the academic community.
    With the release of this report, the Regional Minimum Wages Council, 
  for its part, will report on the minimum wages of various regions 
  (by taking into consideration the various regions' commodity price 
  levels). Ultimately, directors of various regions' Labor Bureaus will 
  determine the minimum wage which will be put into force beginning 
  October.
    With the domestic economy continuing its deflationary trend, a 
  growing number of convenience stores and fast food chains are moving 
  to suppress the hourly wages of their part-time and other workers. 
  It remains to be seen what influence the deferment of the raising of 
  minimum wages will have on non-regular workers.







