The Japan Labor Flash No.11
Email Journal March 15, 2004

JILPT Information
The Japan Labor Flash Reader Questionnaire
Statistical Reports
Recent Statistical Survey Reports
Current Topics
Number of dispatched workers totaled 2.13 million in FY2003; sales
of temporary staffing services also increased …etc
Public Policies
Business offices with high disaster occurrence rates show marked
staff shortages and lack of knowledge and experience …etc
News Clippings
Wacoal to launch new programs that would reward employee motivation
in transfer of posts …etc
Special Issue
Americans looking forward to life after retirement; the Japanese
have not much to look forward to


JILPT Information

The Japan Labor Flash Reader Questionnaire

Dear Readers,

We are looking forward to your positive participation in the
questionnaire.

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


Statistical Reports

-Recent Statistical Survey Reports February 2004-

Features
Report on Private Job Introduction Business (FY2002)
Report on Worker Dispatching Business (FY2002) …etc

http://www.jil.go.jp/english/estatis/esaikin/2004/e2004-02.htm


Current Topics

-Number of dispatched workers totaled 2.13 million in FY2003; sales
of temporary staffing services also increased-

According to a report on temporary staffing services published in
February by the Ministry of Health, Labour and Welfare, the number
of dispatched workers (covering both normal temporary staffing
services and specified temporary staffing services) totaled 2,129,654
in FY2003, up 21.8% over the previous fiscal year. Annual sales of
temporary staffing services that had submitted their business reports
in accordance with the Manpower Dispatching Business Law were 2 trillion
247.2 billion yen, up 15.5% over the previous year. The number of
enterprises to which the workers were dispatched totaled approximately
360,000, which was 5.0% more than the previous year.

Dispatch rates (for 8 hours), or the cost of temporary staffing,
paid by the company requesting temporary workers to the agency
dispatching such workers, was 15,838 yen on average for normal
temporary staffing services and 23,844 yen on average for specified
temporary staffing services.

By way of reference, normal temporary staffing services refers to
staffing services other than specified temporary staffing services.
It mainly comprises the dispatching of registered workers, and involves
a permit system.

Specified temporary staffing services, meanwhile, adopts a notification
system, with the workers sent to do the job on a temporary basis being
restricted to regular, full-time employees.

US$=\110 (March 2004)


-Post-merger task is the fusion of organizational cultures-

From December 1, 2003 to January 19, 2004, the Japan Management
Association conducted a questionnaire survey on business mergers and
on management techniques targeting 3,649 listed companies and companies
registered on the over-the-counter market. Valid responses were sent
in from 388 companies, giving a valid response rate of 10.6%.

The survey revealed that 37.9% of the responding companies had
implemented management integration over the past ten years, with 79.0%
of such companies having done so after 2000. In the past, companies
resorted to such measures mainly to increase efficiency and to promote
rationalization. Recently, however, a change in attitudes is being seen,
with the companies using M&A to carry out aggressive business operations
and developing new markets.

As for post-integration status, roughly half of the responding
companies were satisfied with having "expanded their range of products
and services," "boosted their distribution and sales channels," and
"acquired technological clout," while approximately 40% were not.
When asked what they felt was the most important challenge that needs
to be addressed, the largest number of companies (34.7%) cited
"integration of their organizational culture."


Public Policies

-Business offices with high disaster occurrence rates show marked
staff shortages and lack of knowledge and experience-

Last year, a string of serious accidents occurred at some of Japan's
leading corporations. In response, the Ministry of Health, Labour and
Welfare distributed in November 2003 a self-inspection survey sheet
on safety management to approximately 1,300 large-scale manufacturing
establishments with 500 or more employees. They released their findings
in February 2004.

Continued on;
http://www.jil.go.jp/english/archives/emm/2004/no.11/accidents.htm


-Outline of draft for revising the Trade Union Law recommends prompt
investigation of unfair labor practices; Bill to be submitted-

In late February, the Labour Policy Council of the Ministry of
Health, Labour and Welfare, approved as appropriate the outline of
a draft to revise the Trade Union Law aimed at expediting the process
of investigating unfair labor practices by the Labor Committee. The
proposed Bill incorporates, among other items, the introduction of
orders by the Public Interest Committee Conference to submit evidence
and to summon witnesses. The revised Bill was submitted to the Diet
on March 5 with the aim of having the revision enforced beginning
January 2005.


News Clippings

-Wacoal to launch new programs that would reward employee motivation
in transfer of posts-

In April, Wacoal Corp. will launch the Regular Company-Wide Open
Recruitment Program to enlist employees who will participate in various
projects, and the Job Challenge Program that will enable employees to
apply for transfers to other departments through self-recommendations.
These new programs are aimed at encouraging the employees to work in
places where they have an interest, and at maintaining flexibility and
adaptability in personnel affairs.

The Open Recruitment Program targets all Wacoal employees, while
the Job Challenge Program targets approximately 200 employees ranked
below the section manager class.

Under the first program, the Business Department, when establishing
a new project, will announce the personnel it hopes to recruit.
Employees can apply for the job, regardless of their occupational
grouping (such as salespersons and designers) or the regions in which
they were hired. Under the second program, if employees submit to
the Personnel Department the name of the department they want to be
transferred to, they can set up an interview with the head of said
department without having to go through their current superiors.
(Nikkei Sangyo Shimbun, February)

-Listed companies continue to abolish board director retirement
allowance programs; amount to be added to annual remuneration-

Hoya Corp., Daikin Industries, Ltd. and other listed companies have
all abolished their programs to provide retiring board directors with
special bonuses in recognition of their services ("board director
retirement bonuses"). The companies have discontinued the current
system whereby the longer the directors' period of service on the
board, the greater the amount they would automatically receive, and
have instead integrated it with board directors' annual payments.
By so doing, the companies hope to make their salaries even more
strongly connected to corporate performance or to the board director's
contributions to business success. Although a growing number of
companies are adopting the merit system for their employees' wages
and retirement benefits, the board directors' retirement bonus
programs still had a strong element of seniority. They also aim to
clarify board directors' management responsibilities and to boost
corporate governance.

About fifteen listed companies are believed to have abolished the
board director retirement bonus program in FY2003. Nomura Holdings,
Inc. and Kao Corporation had previously abolished their programs.
(Nihon Keizai Shimbun, February)


Special Issue

-Americans looking forward to life after retirement; the Japanese have
not much to look forward to-

Married women between the ages of 55 and 69 living in large cities
in Japan and the US (Tokyo, Osaka and New York) were asked about their
views on life after retirement. Some interesting findings were released
in February.

The primary theme of the survey, conducted by Nikko Cordial Securities,
Inc., was "To compare and study people's awareness of living expenses
and asset management after retirement between Japan and the US." The
number of valid responses sent in was 300 in Japan and 200 in the US.

The average age of the respondents was 61.9 years in Japan and 61.0
years in the US. In terms of work experience (multiple answers accepted),
59.8% of the Japanese respondents worked full-time and 65.3% worked
part-time, while 89.5% of their US counterparts worked full-time and
66% part-time.

Continued on;
http://www.jil.go.jp/english/archives/emm/2004/no.11/lifeafterretirement.html