Regional Councils and Government Push for Increases

Ryosei Akazawa, the minister for economic revitalization, has been actively involved in advocating for minimum wage increases. He met with Aichi Governor Hideaki Omura in Nagoya to encourage a rise in the minimum wage.

Many regional panels responsible for discussing minimum wages have recommended increases surpassing record-high national guidelines. This reflects the government's push for substantial hikes and the impact of high inflation. By August 21, a majority of the prefectures that had finalized their decisions opted for increases above the guidelines.

Several prefectures have already agreed on increases. For example, Wakayama Prefecture's council agreed on a 65-yen increase, exceeding the guideline by 2 yen. Gifu Prefecture settled on a 64-yen rise, 1 yen above the benchmark. Tottori Prefecture's council recommended a 73-yen increase, bringing its minimum wage to 1,030 yen, surpassing the guideline by 9 yen.

These decisions followed the Central Minimum Wages Council's setting of guidelines for different categories of prefectures. Regional minimum wages councils, composed of labor, management, and public interest representatives, then deliberate and recommend the actual amounts. The central council proposed raising the national weighted average minimum wage to 1,118 yen, a 63-yen increase, which is the largest increase ever.

The government, under Prime Minister Shigeru Ishiba, has actively intervened in the minimum wage revision process, aiming to raise the minimum wage to 1,500 yen during the 2020s. Minister Akazawa, a proponent of wage hikes, engaged with economic organizations during the central council's deliberations. He has since shifted his focus to regional-level discussions, advocating for increases exceeding the national guidelines.

Akazawa visited Fukuoka Governor Seitaro Hattori to request cooperation. The regional council in Fukuoka ultimately recommended a 65-yen increase, exceeding the guideline by the largest margin in the past decade. In Nagoya, Akazawa urged Aichi Governor Hideaki Omura to lead on wage increases, given the high number of minimum wage workers in the prefecture.

While Governor Omura expressed his hope for an increase exceeding the guideline, the regional council's recommendation was a 63-yen increase, in line with the guideline. A council member emphasized that the decision was made based on established principles, independent of political pressure.

In recent years, some governors have also influenced regional council discussions. Last year, Tokushima Governor Masazumi Gotoda attended a council meeting, resulting in a significant increase. This year, some governors have conveyed their views on minimum wages to prefectural labor bureaus. For example, Yamanashi Governor Kotaro Nagasaki formally requested the correction of wage disparities with neighboring prefectures.