Will they or won’t they? Observers of Japan’s economy have been asking that soap-opera-fan question for months. Will Japanese companies, basking in record profits thanks to a weak yen, pass the wealth on by increasing pay?
The answer, which many think could determine the future of Abenomics – Prime Minister Shinzo Abe’s campaign to beat deflation and rev up growth – looks like a qualified yes.
Yesterday Toyota, Honda and Toshiba – whose wage decisions reverberate through the broader labour market – told their unions they would increase average monthly salaries in the fiscal year starting April 1.
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