Japan Inc shun blanket wage hikes amid coronavirus pain

Many firms in the Feb. 2-12 poll dismissed uniform base pay hikes as out of the question due to slumping profits and future uncertainty amid the pandemic. And those who abide by pay rises will do so to retain young and skilled workers

TOKYO: Nearly three quarters of Japanese firms have no plan to offer blanket base pay hikes at this year's "shunto" labour talks, with two thirds keeping wages flat or cutting them as the coronavirus pandemic hits earnings hard, a Reuters poll found.

In a sign labour costs are straining profits, three in five firms will keep the number of employees flat in the coming financial year, while a quarter intend to raise the head counts and 17% plans to cut them, the Corporate Survey showed.