In order to enable small and medium-sized enterprises (SMEs) to pass on the increase in labor costs to their prices, the Japan Fair Trade Commission and other organizations have compiled action guidelines that are required of both clients and companies receiving orders.
In order for small and medium-sized enterprises to raise wages that exceed inflation, it is essential to create an environment in which increases in labor costs can be appropriately passed on to the prices of products and services, and the Japan Fair Trade Commission and the Cabinet Secretariat announced on the 29th the Action Guidelines for Companies to Pass on Labor Costs.
According to the report, companies that place orders are required to raise their policy to accept the pass-through of labor costs to the top management and to present it internally and externally, and to set up a forum for regular discussions on price pass-through, even if there is no request from small and medium-sized enterprises (SMEs) that receive orders.
On the other hand, we require companies that receive orders to use publicly available materials such as the rate of increase in the minimum wage and the amount of the spring wage negotiations as evidence when negotiating prices, and to consider not only their own but also the labor costs of subcontractors and other companies when presenting prices.
In addition, we have shown cases where there is a risk of abuse of the dominant position under the Antimonopoly Act and the purchase of the Subcontract Act, such as deferring the price without consultation despite the request from the contractor.
In the future, the Japan Fair Trade Commission will set up a form that allows contractors to anonymously provide information on businesses that they do not consult with, and will take strict measures against cases where there is a risk of violating the Antimonopoly Act.