The government panel on minimum wage made a decision July 31 to raise the minimum wage by \27 per hour in the average of the nation for the Fiscal 2019. It set a target at \901. Local panels of the prefectures set their own figures, respectively, before August 9 in compliance with the suggestion. But many questions are left unanswered on the minimum wage issue.

RECTIFY DIFFERENCES IN MINIMUM WAGES AT THE LEAST

Problems on the target figure

If the panel’s target is put in practice, the minimum wage in Tokyo will be heightened to \1,013, and \1,011, in Kanagawa Prefecture, which exceeds the \1,000 level for the first time. The weighted average of the nation is currently \910, and only six prefectures can go beyond the level, when Saitama, Chiba, Aichi and Osaka are added,.

Seventeen prefectures, which are ranked as D, the current minimum wage does not reach \800. A gap between the highest and the lowest, namely Tokyo and Kagoshima Prefecture, the latter recording \787 per hour, has expanded to be \226 (it was \224 last year).

On July 30, when the government panel discussed the issue, a mass rally was held in front of the ministry’s building, which mobilized workers from the Zenrokyo and the Zenroren trade unions as well as the Campaign Committee for Big Raise of Minimum Wage. The workers showed a slogan, ‘Minimum Wage should be set as \1,500 immediately in every prefecture, Set Uniform Minimum Wage to remove gaps! The panel, however, rejected a demand of observer status of workers, and the meeting was held behind the closed door.

Situation is improving

Before the July election of the House of Councilors, on May 29, the civic groups and the Constitutional Democratic Party (CDP) confirmed an agreement: to remove big gaps of prefectural minimum wages, to realize a \1,500 per hour wage and practice an 8-hour work a day as basic rules for workers’ life. In fact during the election campaigns the CDP presented \1,300, the Kokumin-minshu Party (=Democratic Party for the People), \1,000, and the Communist Party and the Social-Democratic Party as well as the Reiwa Party, \1,500.

The ruling Liberal Democratic Party (LDP) established last February the League of MPs to Promote Uniform Minimum Wage (Chaired by Eto Seishiro, Member of the House of Representatives). Reportedly, Mr. Eto told in his opening speech, referring to the bill on National Minimum Wage which was presented in 1975 by the four opposition parties, that it had been withdrawn unfortunately without debates and that it was necessary to integrate to a uniform figure which would foster the fundamental human rights.

Several dubious MPs, like Inada Tomomi and Simomura Hakubun, both of whom are of the House of Representatives, belong to the league. However, many of the league members represent local voters. Even the government’s labor policy says that the ministry will work so that national weighted average should reach \1,000 as soon as possible.

The league focuses on ‘revival of aggravating local economies and overcome of deflation’, not on guaranteeing workers’ human rights. But they are obliged to argue the uniform minimum wage.

Revise the Minimum Wage Act

The minimum wage of Japan represents the figure of Kagoshima Prefecture, \787. A gap from that of Tokyo surpasses \400 thousand, if a worker works for 1,800 hours a year. Measures to fill gaps are necessary for a time being. The Minimum Wage Act provides, however, prefectural panels shall set the figure in compliance with the objective given by the national panel. The act needs to be revised.

The act was amended in 2008, stipulating that the government shall arrange measures, taking life protection services in account from a perspective that a worker can lead a minimally healthy and cultured life. At the same time, however, the act provides a clause that attention should be paid to capabilities of business entities to pay wages.

When discussing minimum wage, we must take the idea of national minimum into consideration. Laws should contain the government’s duties to guarantee the minimum standards. 

August 20, 2019