The Japan Labor Flash No.1
Email Journal October 1, 2003

Statistical Reports
Main Labor Economic Indicators

Current Topics
Rengo Presidential election begins

Public Policies
The government's unemployment relief program to be completely abolished

News Clippings
Bank employees to be dispatched or transferred to hospitals ...etc

Special Issue
An Industrial Union that members can "Count on"

JILPT information


Statistical Reports

-Main Labor Economic Indicators September 2003-
http://www.jil.go.jp/estatis/eshuyo/200309/econtents.htm

-TANKAN-
Short-term Economic Survey of Entreprises in Japan
-October 1, Wednesday, released by the Bank of Japan http://www.boj.or.jp/en/stat/tk/tk0309.htm


Current Topics

-Rengo Presidential election begins- The Japanese Trade Union Confederation (Rengo) will re-elect their officers at their regular convention on October 2 and 3. The Presidential election is a focus of considerable interest. Two individuals have stepped forward as candidates for the post: Rengo's current President, Kiyoshi Sasamori, formerly with the Federation of Electric Power Related Industry Worker's Unions of Japan, and Tsuyoshi Takagi, President of the Japanese Federation of Textile, Chemical, Food, Commercial, Service and General Workers' Unions, who is currently Rengo's vice President.

This will be the third time, following the 1995 election of the General Secretary and the 1997 Presidential election, that an official post will be decided by an election.

Continued on; http://www.jil.go.jp/english/archives/emm/2003/no.1/rengo_election.html


Public Policies

-The government's unemployment relief program to be completely abolished-
The Ministry of Health, Labour and Welfare's Study Group to investigate the development of employment programs for designated areas recently compiled a report of its findings. This particular program was the last that had remained of the government's unemployment relief measures that helped individuals who had lost their jobs through industrial restructuring by paying benefits to them directly. The report concluded that this program should be abolished at the end of FY2006.

The Development of Employment Program for Designated Areas originally derived from the government's unemployment relief measures launched under the Emergency Unemployment Relief Law of 1949 in response to massive postwar unemployment. By 1971, however, the number of workers employed under this relief measure exceeded the peak number of 350,000 reached in 1960, and more workers began staying in one place, contrary to the relief measure's original purpose of "temporarily assisting with the living expenses of jobless people." The program was therefore launched that year, in 1971, by preventing the addition of any new work projects to which the unemployment relief program would apply, but at the same time giving special consideration to areas that had "few or no employment opportunities."

The report pointed out that a wide range of social infrastructures have now been established, and the government's unemployment relief program, which had thus far created jobs by means of public utility works projects such as road construction, had fulfilled its goal and ended its mission. The only program that still remained was a system being applied in a former coalmining area in Fukuoka Prefecture. The report concluded that there was no logical reason for continuing the program.

At present, the government's unemployment relief programs basically aim at promoting private-sector employment. It is therefore a matter of course that the Ministry of Health, Labour and Welfare will decide to abolish the program following the release of this report. The history of unemployment relief programs, which, for over half a century since their founding, played an important role in creating jobs and were hailed as having made a definite contribution to reviving Japan's postwar economy, will finally draw to a close.


News Clippings

-Bank employees to be dispatched or transferred to hospitals-

By next spring, the Mizuho Financial Group will dispatch experienced bankers to various hospitals as members of their staff.

As a result of the government's policy of curtailing health care costs and other measures, a growing number of hospitals have begun looking for management experts. Banks, for their part, are under urgent pressure to reduce their workforce, so the aims and motives of both sides have matched up perfectly.

Mizuho enlisted candidates from the Group's employees aged 45 and older whose ranks were assistant store manager or higher. About 70 people applied. They will undergo a 2-month training program under physicians and certified public accountants, to study the health insurance system, medical processing and other matters. They will then be transferred either temporarily or permanently to hospitals operating on a relatively large scale, where they will engage in hospital management as general managers, chief clerks, and other titles.

Until now, hospitals have operated under the not-for-profit principle, as a basic rule, and have enjoyed a relatively stable income from medical insurance and other sources. However, as a result of system reforms designed to limit the ever-expanding health care costs and the reduction of medical treatment fees, management know-how is now being sought.
(Asahi Shimbun, September)

-Childcare services to be provided inside vacant stores- A growing number of childcare facilities are being set up that make use of vacant stores in local shopping areas. Those that aim to support working mothers are also increasing, such as after-school daycare facilities and all-day nursery schools. Shopping arcades are often conveniently located and easily accessible, and parents find it easy to use facilities that are housed in such areas. They can also form closer ties with the regional community and area residents.

One such facility is the Amor Gakudo (for elementary school pupils) Club, which was opened on the corner of a shopping area in Tokyo's Adachi Ward. The association for the promotion of this shopping area rented a vacant store and renovated it for use as a children's facility. Besides toys and books, the Club has PC instructors who teach the children how to send email and other computing skills.

Adachi Ward has seen a rising number of working women in recent years and a consequent sharp increase in the demand for after-school daycare facilities. The waiting lists for children to enroll in such facilities were swelling, and the Ward Office was desperately looking for solutions. On the other hand, local shopping arcades were steadily losing customers, business, and vitality, but had a longstanding track record of carrying out community business such as food delivery and other services. They decided to open an after-school daycare facility after learning that they could make use of their experience and brighten up the local community. One of their advantages is that they can serve special box lunches even during the school summer holidays. This is an extension of their food delivery services that cater to elderly residents. Mothers who use this facility say that they feel safe keeping their children there because the facility is located in a shopping area, where many people naturally keep an eye on children. They reportedly do their shopping in the area before heading home.

In this particular case, the Ward Office provides a variety of types of support: besides helping out with personnel fees associated with after-school childcare services, the Office grants subsidies for various construction/facility fees and rent prior to opening.
(Nihon Keizai Shimbun, September)


Special Issue

-An Industrial Union that members can "Count on"- On September 9, three of Japan's industrial unions--
the Japan Federation of Steel Workers' Unions, the Japan Confederation of Shipbuilding and Engineering Workers' Unions, and the Japanese Federation of Industrial Materials and Energy Workers' Union--integrated their organizations to form the Japan Federation of Basic Industry Workers' Union. The new organization comprises 352 unions and approximately 250,000 members, making it the 8th largest Rengo-affiliated industrial union and the 6th largest private-sector industrial union. Continued on; http://www.jil.go.jp/english/archives/emm/2003/no.1/industrial_unions.html


JILPT information

Dear readers,

As we informed you in the last issue, starting today, the Japan Institute of Labour has become a new organization, the Japan Institute for Labour Policy and Training, or JILPT. This is the inauguration issue of the Japan Labor Flash, or JLF.

We will continue to deliver the latest up-to-date information on Japan to our readers. The Editors look forward to receiving your comments and/or questions.