The JIL Labor Flash Vol.49
Email Journal 01.09.2003

   Statistical Reports
     Main Labor Economic Indicators
   Current Topics
     Utilization of vocational colleges to assist young free-lancers
     become socially independent
   Public Policies
     Social Insurance Agency moves to enforce the collection of national
     pension premiums
   News Clippings
     Itochu aims to make half of its board directors women and non
     -Japanese nationals ...etc
   Special Issue
     Prospects for the LDP presidential election, dissolution of the
     Lower House and the general election


   Statistical Reports

   -Main Labor Economic Indicators August 2003-
  
    http://www.jil.go.jp/estatis/eshuyo/200308/econtents.htm
  


   Current Topics

   -Utilization of vocational colleges to assist young free-lancers
    become socially independent-
  
    The Ministry of Education, Culture, Sports, Science and Technology
  (MEXT) has decided to launch programs to assist the approximately two
  million youths in Japan who have not taken regular jobs after graduating
  from schools. It will draw up and implement a "re-education program"
  that makes utilizes vocational colleges. The aim is to have these
  youths acquire, during a short period, the knowledge and skills
  necessary for acquiring full-time jobs.
   
    Specifically, in FY2004, MEXT will select 56 vocational colleges
  throughout Japan that provide practical vocational education to high
  school graduates for a period of one to four years, and commission
  them to develop educational programs in information technology,
  welfare, biotechnology, among other subjects. MEXT will then spend
  the next year investigating how effective the programs are by studying
  the curriculum and implementing it on a test basis, with the advice
  of corporate and academic personnel. Based on the results of these
  pilot programs, MEXT will encourage other vocational colleges throughout
  Japan to take up these programs, thereby putting a stop to the growing
  number of unemployed persons.

    There are many youths who, although seeking full-time work, are
  forced to resort to taking up piecemeal work due to a lack of knowledge
  or skills.

    This program is part of the Plan to Encourage Youth's Independence
  and Challenges which was compiled by the government in June. Another
  program MEXT is planning to introduce next fiscal year is a Japanese
  -style "dual system." Unlike internship programs where participants
  undergo training in corporations, those participating in the dual
  system will be able to acquire knowledge and skills while working in
  a company and receiving a salary.(Reference: JLF Vol.45/Public Policies)
  In addition, MEXT plans to designate model regions where the entire
  community will engage in career education to enhance youth's vocational
  awareness and perceptions of work and careers.


   Public Policies

   -Social Insurance Agency moves to enforce the collection of national
    pension premiums-

    In past issues, on frequent occasions it has been discussed how the
  lingering depression, the declining number of children, and the growing
  elderly population have increased social security costs, straining
  various labor insurance finances and forcing society to come up with
  immediate solutions to these serious problems.
 
    Generally speaking, Japan's universal pension insurance coverage
  is made possible with the following three programs: employees' pensions
  which all corporate employees must subscribe to, in principle (the
  burden of premium payments is split evenly between labor and management);
  mutual aid pensions targeting public employees; and public pensions
  to which the rest of the people subscribe.

  Continued on;
     http://www.jil.go.jp/english/archives/emm/2001-2003/2003b/vol.49/nationalpension.html
 


   News Clippings

   -Itochu aims to make half of its board directors women and non
    -Japanese nationals-
   
    Itochu Corporation unveiled a plan to establish an in-house committee
  to study hiring and promoting more women and non-Japanese employees.
  This is seen as an attempt by the company to promote employees
  regardless of nationality, age or gender, as a means of reinvigorating
  the corporate structure. At present, the company has no female or
  foreign employee ranked at the level of division director or higher,
  and only several section managers. When it comes to employing women
  and foreigners, Itochu is lagging behind companies in the manufacturing
  and other sectors.
 
    Itochu President Niwa's aim is that in ten years' time, half of the
  current 11 board directors will be made up of women and non-Japanese
  employees.
                                            (Nihon Keizai Shimbun, August)

   -Kadokawa Shoten to completely abolish seniority-based wage system-
  
    Kadokawa Shoten Publishing Co., Ltd. will completely abolish its
  employees' seniority-based wage system in October. Instead, it will
  introduce a system whereby wages increase or decrease depending on the
  "ranking" of employees determined independently of seniority or number
  of years of service, as well as by employee performance. The system
  will be applied to general employees. Bonuses will be linked 100% to
  employee performance. The company has already introduced an annual
  salary structure for employees in managerial positions and will
  completely eliminate the seniority-based wage system.
   
    Kadokawa is the first major publishing company to reexamine its
  seniority-based wage system, including the abolition of periodic pay
  rises whereby salary increases according to age, although similar moves
  are becoming more common among manufacturers including Honda Motor.
                                            (Nihon Keizai Shimbun, August)


   Special Issue

   -Prospects for the LDP presidential election, dissolution of the Lower
    House and the general election-
 
    Japanese prime ministers are not chosen directly by public referendum.
  Instead, they are selected through a mutual vote of Diet members, with
  the president of the ruling party usually being nominated the Prime
  Minister.
   
    The election to determine the president of the Liberal Democratic
  Party, planned for September 20, will be the third one for Prime Minister
  Koizumi since he took office. Interest is currently focused on who the
  opposing candidate will be, and whether or not Koizumi will be re-elected.
  Although special dynamics come into play in LDP presidential elections,
  at the moment, the name of a formidable rival yet to surface.
 
  Continued on;
     http://www.jil.go.jp/english/archives/emm/2001-2003/2003b/vol.49/generalelection.html