Some Japanese companies are resisting union demands for an across-the-board increase in pay. It is known as “bea” — a Japanese abbreviation for “base up”. This means that pay is raised at every point in Japan’s strict seniority-based wage systems. It has the effect of permanently increasing the overall wage bill. Recently Toyota suggested it might move away from a seniority-based pay system, saying it ‘wanted to increase wages for younger employees by basing salaries more on merit than on years of employment’.
Read the full article Japanese unions and employers clash over best way to raise pay first published by the Financial Times (subscription required).