Exchange of Views among the Government, Labor, and Management

On March 12, 2025, Prime Minister Ishiba attended an exchange of views among the Government, labor, and management at the Prime Minister’s Office.

At the meeting, an exchange of views was held with labor and management representatives toward wage negotiations of micro, small, and medium-sized enterprises (MSMEs) going forward, as many employers give responses to pay increase requests made during the 2025 spring labor-management wage negotiations.

Following the exchange of views, the Prime Minister said:

“We just received a report from the Chairman of the Japan Business Federation (KEIDANREN) that a large number of enterprises gave responses with a high level of pay raises again this year, aiming to firmly establish strong momentum of wage increases take root.

We believe that the momentum toward realizing a ‘growth-oriented economy driven by wage increases and investment’ has grown, and that enhanced public-private partnerships are beginning to bear fruit, through the passage of the economic package and supplementary budget at the end of last year and the Public-Private Partnership Forum on Increasing Domestic Investment this January, among others, since I made a request for cooperation in substantial wage hikes in the exchange of views among the Government, labor, and management last November. Once again, I would like to express my appreciation for your cooperation and dedication. Thank you very much.

On the other hand, the members of small and medium-sized enterprise associations made remarks calling for further strengthening support for passing on labor costs and improving productivity. We will mobilize every available policy to realize wage increases at MSMEs going forward.

I ask the Minister for Internal Affairs and Communications to urge local municipalities to achieve appropriate passing-on of labor costs in their public procurements by for example utilizing grants to local regions for prioritized assistance worth 600 billion yen.

With regard to price pass-throughs, we submitted a bill to amend the Subcontract Proceeds Act (Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors) and the Subcontracting Promotion Act (Act on the Promotion of Subcontracting Small and Medium-sized Enterprises) to the Diet yesterday. The bill includes the prohibition on unilateral pricing without responding to requests for price negotiations and other measures. We will seek early passage of the bill.

We will aim to ensure that essential workers and other laborers engaged in jobs critical for maintaining the functions of the society can receive appropriate evaluations and enjoy pay raises as they hone their skills. Yesterday the first certification for the skill testing program was conducted. I request all ministers to further encourage industries under their respective jurisdictions to utilize this program and comply with the Guidelines on Price Negotiations for Appropriately Passing On Labor Costs by making them widely known in these industries.

We will advance investments for saving labor, digitalization, and other purposes to enhance the productivity of MSMEs and offer additional support for business succession, mergers and acquisitions (M&As), and other measures to reinforce human resources and business foundation.

I ask Minister Akazawa to play a central role in taking today’s discussion into account, giving shape to measures effective for raising minimum wages, and compiling them by May.

I would appreciate the continued cooperation of labor and management, including small and medium-sized enterprises, to raise incomes and enhance the productivity of the overall economy, with wage increases that surpass the rise in prices as a starting point. That is all from me. Thank you.”