[Provisional Translation]

Prime Minister Shinzo Abe attended the Government-Labor-Management Meeting for Realizing a Positive Cycle of the Economy at the Prime Minister's Office.
During the meeting, policies for support and cooperation in passing on price increases, and policies aimed at improving service industry productivity were approved.

Based on the discussion, the Prime Minister said in his address,

“I believe the extent to which small- and medium sized enterprises are able to increase their wages will largely determine if we can deliver the winds of economic recovery to every corner of Japan. At the Government-Labor-Management Meeting last December we reached an agreement on measures to pass on price increases to reflect rising raw materials costs, and the public and private sector have worked together in implementing them. According to the study by the Ministry of Economy, Trade and Industry reported here today, partial or full increases have been reflected in the prices charged by more than 70% of companies receiving work orders, which indicates an improving trend.

Taking the opportunity presented by the early results from the spring wage offensive, I would like to make further strides toward developing a full-fledged environment conducive to wage increases in small- and medium-sized enterprises as we head toward the summer. To that end, today we approved policies to pass on price increases and policies to improve the productivity of the service industry.

We have received extensive support with regard to policies to pass on price increases from the Keidanren (Japan Business Federation), who will make a request to its members so that companies placing orders and their suppliers agree in advance on how to share profit and loss associated with raw materials costs and changes in supply and demand. For its part, the Government will revise guidelines for 14 sectors and demonstrate preferable business practices, while also reinforcing the enforcement of the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors.

In the first half of the fiscal year we will carry out concentrated onsite inspections at an additional approximately 500 major corporations. With regard to improving productivity in the service industry, we will set up public-private joint councils on improving productivity through collaboration with the manufacturing industry for sectors that include retail, restaurants, accommodations, nursing care and truck deliveries, among others. I would like to ask Minister Amari and ministers covering each business type to create a framework for this initiative.  

Today, President Nitori and President Sakamoto joined us as guests. In times of adversity, to improve productivity we must first increase wages. I would like all of Japan to carry out such measures together. In addition, President Sakamoto had great success with a revolutionary initiative within the restaurant industry, where incomes are not rising, whereby he increased the wages of workers while lowering prices at the same time. I believe the efforts of these two business leaders have given us a great deal of courage by showing us a path that is well suited to Japan’s economy. I would like to take this opportunity to thank you both once again.

The decisions made at this Government-Labor-Management meeting today have created the conditions we need. I would like to request that small- and medium-sized enterprises make maximum efforts to raise wages and thereby expand the positive cycle of the economy. Thank you.”