Regional Councils Push for Hikes, Fueled by Inflation and Government Intervention

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

Many regional panels responsible for determining minimum wages have recommended increases that surpass the national guidelines, which themselves are at record highs. This reflects the impact of significant inflation. As of August 21st, a majority of the prefectures that had finalized their decisions opted for increases above the guidelines.

Several prefectures have already agreed on increases. For instance, Wakayama Prefecture's council approved a 65-yen increase, exceeding the guideline by 2 yen. Gifu Prefecture's panel 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, 9 yen above the guideline.

These decisions follow guidelines set by the Central Minimum Wages Council, which includes representatives from labor, management, and public interest experts. Each prefecture has its own regional council, composed similarly, to deliberate and recommend the actual wage amounts.

The Central Minimum Wages Council proposed raising the national weighted average minimum wage to 1,118 yen, a 63-yen increase, or 6 percent. This is the largest increase ever and surpasses the previous record. If followed nationwide, this would bring the minimum wage above 1,000 yen in all prefectures for the first time.

The government, under Prime Minister Shigeru Ishiba, has been actively involved 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, has been engaging with economic organizations and focusing on regional-level discussions, urging for increases beyond the national guidelines.

Akazawa's efforts include visiting governors to encourage cooperation. For example, he visited Fukuoka Governor Seitaro Hattori. While the regional council in Fukuoka ultimately recommended an increase exceeding the guideline, its chairman emphasized the panel's independence from political influence.

In Aichi Prefecture, Akazawa urged Governor Hideaki Omura to take the lead on wage increases. Although Omura expressed his hope for an increase exceeding the guideline, the regional council's recommendation aligned with the guideline. A council member stated that political pressure did not influence the decision.

In recent years, some governors have also taken steps to influence regional council discussions. Last year, the Tokushima Governor attended a council meeting, which resulted in a significant increase above the guideline. This year, some governors have conveyed their views on minimum wages to prefectural labor bureaus.