Japanese firms' tight-fisted attitude on wages could backfire, say analysts

Tokyo

LEADING Japanese companies have little intention of heeding prime minister Shinzo Abe's pleas for them to raise basic wages next year, a move intended to boost consumption and help Japan overcome a stagnant economy and deflation, a Reuters survey has found.

The widely-publicised poll among 47 leading Japanese companies, which found that barely one in 10 firms planned to raise wages, said the finding could damage the Bank of Japan (BoJ), the policies of which have pushed up prices and forced down real or inflation-adjusted wages in Japan.