Cost pressure and price negotiation risk arising from the response to equal pay for equal work
First written in FY2020. 3 of 5 entries say "Mitigated", first in FY2025-H1. Latest entry: FY2026.
The whole theme swung hardest in 2024: 4 of 10 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Numerous existing customers approved higher unit prices from the new fiscal year beginning in April 2026, and profitability improved through higher staffing rates reflecting the minimum-wage revision from October 2025.」
In response to higher costs resulting from rising prices, wage increases and the minimum wage revision, the company obtained approval for rate increases from numerous customers, leading to improved profitability. - FY2026-H1MitigatedAnnual report
「Profitability improved because the company obtained approval from numerous business partners for rate increases from April 2025, and generally obtained approval for further rate increases in anticipation of the minimum wage revision from October 2025.」
In response to higher costs resulting from rising prices, wage increases and the minimum wage revision, the company obtained approval for rate increases from numerous business partners, leading to improved profitability. - FY2025-H1MitigatedAnnual report
「Although new graduate and mid-career recruitment costs and labor costs are trending higher due to rising prices, wage increases and other factors, the company is seeking the understanding of client companies and working to improve profitability.」
The company continues to seek the understanding of client companies and improve profitability in response to higher recruitment and labor costs. - FY2021RestatedAnnual report
「Employee benefits improved in part as a result of measures to achieve equal pay for equal work following amendments to the Worker Dispatching Act and other legislation under work-style reform, which took effect in April 2020. To improve the benefits of temporary staff, individual rate negotiations became mandatory every year instead of using uniform evaluations, creating additional workloads for staffing agencies and client companies.」
The company continues to identify as challenges the improvement of employee benefits through measures to achieve equal pay for equal work, as well as individual rate negotiations and the resulting additional workload. - FY2020First statedAnnual report
「Employee benefits improved in part as a result of measures to achieve equal pay for equal work following amendments to the Worker Dispatching Act and other legislation under work-style reform. However, this has also put pressure on costs, making price negotiations and the enhancement of added value essential.」
The company has identified for the first time, as a separate issue, the risk that measures to achieve equal pay for equal work may improve employee benefits while putting pressure on costs and making price negotiations and the enhancement of added value necessary.