- Today, the National Personnel Authority made a recommendation to the Diet and the Cabinet on monthly wages and bonuses for national government employee. It recommended that a monthly wage be reduced by 7,770 yen or 2.03% and the bonuses be
reudced to 4.65 months from the current 4.7 months. The cut in total annual salary would average about 150,000 yen. It is the first time for the Authority to recommend a wage cut since the current pay recommnendation system started in 1948.
- If the recommendation is implemented, this would negatively affect wages in the remaining private sectors, keep the macroeconomy stagnant and then contribute to further deflation.
- The Authority proposed that this recommendation be retroactive to April this year. However, it has never been a case in the private sector that an unfavorable change in working conditions is regroactive. The recommendation is not in the line
with the principle of "being in accordance with the private sector". It should not be accepted in the light of precedents.
- Rengo, in cooperation of its Public Sector Liaison Council and relevant industrial federations, will strengthen its effort towards the government for the recommendation not to be implemented.
- Rengo will contibue making its best effort to change pulic policies to do away with defration and support activities in the public sector.
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