61690    On the other hand, by now everyone says that the Japanese economy has matured and points out that the hollowing out of industry is in progress.

61691    Drastic deregulations should be carried out.

61692    Markets should be boldly opened.

61693    Unless we expose all industries to international competition, Japan's economy will remain in a rut.

61694    I am not saying that these arguments and views are off the mark.

61695    However, it was not labor's choice to bring on the current situation.

61696    If anything, where labor may have been to blame is their preoccupation with cooperating with management even during the times when the economic climate was such that they could have won substantial wage increases.

61697    As a result, pay hikes had always been restrained, thus failing to increase disposable income.

61698    While nominal wages have risen steadily, the increase has hardly been felt.

61699    That is why domestic demand has not been stimulated.

61700    Then what is the way out of this situation?

61701    Labor will have no other choice but to obtain wage increases that are closest to their target.

61702    After switching its demand from percentage-based increases to one based on amount from this year's spring offensive, Rengo's target is for 14,000 yen, including an annual pay raise of 5,600 yen.

61703    The wage increase received was 3.13 percent as opposed to the benchmark demand of 5 to 6 percent for the previous year.

61704    It was the lowest raise in the history of the spring offensive.