The Japan Labor Flash No.10
Email Journal March 1, 2004

JILPT Information
The Japan Labor Flash Reader Questionnaire
Statistical Reports
Main Labor Economic Indicators
Current Topics
Rengo to open childcare and nursing care centers
Public Policies
The Cabinet decides on three bills related to fostering the next
generation
News Clippings
Corporations trying to fill vacancies during employees' childcare
leave ...etc
Special Issue
Bill to revise pension program decided on by Cabinet


JILPT Information

The Japan Labor Flash Reader Questionnaire

Dear Readers,

As we informed you earlier, we hereby send a questionnaire to all
of you. The main purpose of the survey is to improve the quality of
this newsletter. Please take part in the questionnaire.

Your cooperation will be highly appreciated.

http://db.jil.go.jp/emm/questionnaire.htm


Statistical Reports

-Main Labor Economic Indicators February 2004-

http://www.jil.go.jp/english/estatis/eshuyo/200402/index.htm


Current Topics

-Rengo to open childcare and nursing care centers-

Despite the government's plan to reduce the number of children
waiting to enroll in childcare centers, the problem has yet to be
fully resolved. As of July 2003, a total of 33,000 children were on
the waiting list throughout Japan.

Fewer than half of all childcare facilities extend their operating
hours to cover parents' overtime work. With an eye also to promoting
the employment of women, the Japanese Trade Union Confederation (Rengo)
has decided to take action to rectify the situation. In February,
it finalized a plan to open and operate childcare and nursing care
centers in collaboration with regional NPOs, centering on regional
federations of labor unions.

Some large corporations have begun operating childcare facilities
for their employees. However, employees working in medium- to small
-scale businesses that have no special in-house welfare facilities
have so far been denied these benefits. Rengo's decision can be
regarded as an example of putting into practice their new major policy
of moving away from union management centering on large corporations
and carrying out movements by getting SME workers involved and extending
support to them.

These new programs support the fostering of the next generation
of workers, and have the potential to become a spur for the general
public to look closer at labor unions and remind themselves that
they are even more relevant and familiar to them. More than anything,
this attempt to send out strong messages with their voluntary action,
rather than merely launching criticisms, is a fresh new move for a
labor union, and a timely one, too.


Public Policies

-The Cabinet decides on three bills related to fostering the next
generation-

On February 10, the Cabinet decided on three bills related to
measures that assist the fostering of the next generation. The bills
comprised the following: a bill to revise the Child Allowance Law that
extends the age of eligibility to receive childcare allowance to the
completion of the third grade of elementary school; a bill to revise
the Child Welfare Law that incorporates toughening child abuse
prevention programs; and a bill to revise the Family and Medical
Leave Act that would enable employees to take leave to look after
their sick children as part of their legitimate rights.

We have described the bill to revise the Family and Medical Leave
Act in the last issue but one (see JLF No. 8, Public Policies).
http://www.jil.go.jp/english/emm/2004/8.htm

The bill to revise the Child Allowance Law, meanwhile, aims at
putting a brake on Japan's declining birthrate by extending the period
of allowance payments. Some say, however, that the revision will have
only limited effects unless childcare facilities for working couples
are further enhanced.

The bill to revise the Child Welfare Law is primarily aimed at
addressing problems related to child abuse, cases of which are
currently being reported almost on a daily basis on TV and in other
media. The revised law will clearly set forth that child abuse is
a serious violation of a child's human rights, and will obligate
witnesses to report such cases to the authorities. If a suspected
victim's parents refuse on-site inspections by members of the child
counseling center, and if such members judge that the child's life
is in danger, the law will enable the police, upon receiving a
notice by the center, to forcibly enter the premises.

Until now, Japan has lagged behind other countries in dealing with
this issue. This is clear from the fact that, at the end of January,
the United Nations' Committee for the Convention on the Rights of
the Child urged Japan to take more steps to prevent child abuse,
including violence such as bullying. The Child Abuse Prevention Law
was enacted only recently, in 2000, and Japan still has a long way
to go, as seen in the fact that the underlying causes of family
violence--the incidence of which has been increasing dramatically in
recent years--have yet to be fully identified.


News Clippings

-Corporations trying to fill vacancies during employees' childcare
leave-

Corporations have begun to seriously consider measures to replenish
their manpower during the periods when their employees take childcare
leave. Many companies, mostly those with a high proportion of female
employees, are temporarily transferring personnel from other departments
that have surplus labor, or are hiring new employees when a vacancy
occurs. Their aims are to prevent the remaining employees from being
burdened with extra work, and to maintain work efficiency.

Johnson & Johnson K.K. came up with the idea of allowing one employee
to take on a double role, since the company had some leeway, although
very slight, among the staff. Meanwhile, some Internet venture companies
have opted to hire full-time employees anew.

The NLI Research Institute conducted a survey in March 2002 targeting
3,111 companies nationwide to study the management of staff during
periods when other employees had taken childcare leave. Effective
responses were sent in from 563 companies. The Institute found that
a majority of corporations had no basic rules in place, and dealt
with the situation according to circumstances, regardless of the
duration of the leave. Large-scale corporations have launched their
own plans to appoint women to managerial posts, and have diversified
their programs to support employees who are in the midst of raising
children. However, when it comes to securing a replacement workforce
as a result of childcare leave, companies are slower to act. This
may be because doing so would lead directly to increased personnel
expenses.
(Nihon Keizai Shimbun, February)


-Toyota ranked No. 1 in an image survey of "Companies with growth
potential"-

According to the results of the 16th Nikkei Corporate Image Survey
compiled by Nihon Keizai Shimbun, Inc., and Nikkei Research Institute
of Industry and Markets, the No. 1 company which Japanese businessmen
regarded as having growth potential was Toyota Motor Corporation.

The survey targeted 14,874 businessmen working in business offices
located in metropolitan Tokyo (response rate: 62.8%) as well as 14,800
men and women living within a 40-km radius of metropolitan Tokyo
(response rate: 64.5%).

Honda Motor Co., Ltd. was rated second by the businessmen in terms
of corporate growth potential, but Sony Corporation, which was ranked
first in the previous survey, came third. Nissan Motor Co., Ltd.,
meanwhile, which was ranked 37th the previous time, increased its
support rate by 17.8 points and jumped to fourth place. The company
was judged as having gotten on track again thanks to the reforms
carried out by President Carlos Ghosn. These companies were followed
by Yahoo! Japan Corporation in 5th place, Dell Inc. in 6th, and
Oriental Land Co., Ltd. which runs Tokyo Disneyland, in 7th.
(Nikkei Sangyo Shimbun, February)


Special Issue

-Bill to revise pension program decided on by Cabinet-

On February 10, the Cabinet decided on a bill to reform the pension
program.
Prime Minister Junichiro Koizumi stated that his administration would
powerfully push such reform forward, since last year's general election
had given him a mandate from the public.
In several of our past issues, we have discussed the recent status of
Japan's pension system. An overview of the final bill that was recently
decided on by the Cabinet is as follows:

Continued on;
http://www.jil.go.jp/english/archives/emm/2004/no.10/pensionprogram.html