This year, Fast Retailing, a major Japanese corporation that owns the well-known clothing labels Uniqlo and Theory, will begin paying its staff significantly more.
The corporation issued a statement saying that “this will encompass staff from headquarters and corporate departments in charge of the operations of the company’s worldwide headquarters, as well as employees operating in stores.”
The corporation acknowledged that “remuneration levels have remained low” in the nation in previous years when it announced on Wednesday that it would increase compensation in Japan by up to 40%.
Just a few days prior, Japanese Prime Minister Fumio Kishida urged company executives to speed up pay raises for employees, warning that if wage increases lagged behind price increases, the economy would be in risk of entering stagflation.
The third largest economy in the world announced its worst real-wage loss in more than eight years on Friday, making things worse for workers who already have to deal with rising living expenses.
The biggest decline in living conditions in Japan in almost a decade is currently being dealt with.
According to official data released on Tuesday, core inflation in the Japanese capital of Tokyo increased by 4% in December when compared to a year earlier. This is more than the 3.8% that economists had predicted.
According to experts at Nomura, that was “the highest observed in 40 years” in a study released on Wednesday.
A Fast Retailing representative told CNN on Wednesday that “Japanese inflation is a factor in our considerations.” However, according to the spokesman, the company is normally more concerned with bringing “each employee’s remuneration into line with worldwide norms, in order to be able to boost our competitiveness.”
In March, the business will formally change its entire compensation structure. According to the corporation, starting salaries for entry-level university graduates will increase by about 18%, while those for new store managers may increase by about 36%. According to the spokesman, the store has also been increasing employee pay in some of its international marketplaces, with pay increases ranging from 5% to 25%.
- As inflation bites, Uniqlo’s owner is increasing staff pay in Japan by up to 40%
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