The Japan Labor Flash
No.16
Email Journal June 1, 2004
Statistical Reports
Main Labor Economic Indicators
Current Topics
Compensation liability of labor union questioned in death from
overwork ("karoshi") case case …etc
Public Policies
Approximately 80% of companies cut personnel expenses to curb costs,
a Cabinet Office survey reveals …etc
News Clippings
Uniqlo actively hiring disabled workers …etc
Special Issue
Issues relating to foreign workers in Japan
Statistical Reports
-Main Labor Economic Indicators-
http://www.jil.go.jp/english/estatis/eshuyo/200406/index.htm
Current Topics
-Compensation liability of labor union questioned in death from
overwork ("karoshi") case-
The Kyodo News Agency reported that the parents of a 30-year-old
man, who died from a cerebral hemorrhage in 2002 while working as
an employee with Tokyo-based systems development company SCC, filed
a lawsuit with the Tokyo District Court in May. They alleged that
the company had failed to improve the harsh working conditions that
led to their son's death, and demanded that SCC and its labor union
pay a total of approximately 144 million yen in compensation.
In the six months immediately preceding his death, the male employee,
a systems engineer, worked for an average of 67 hours overtime every
month. The lawyer representing the plaintiff pointed out that despite
the existence of an official agreement between SCC and its labor union,
which prohibits employees from working more than 30 hours of overtime
per month without prior consultation, the labor union neglected to
carry out the required consultations in this case. The lawyer also
stated that the labor union had failed to cooperate with the plaintiff's
family in applying for work-related accident compensation, describing
the union's attitudes as malicious. This is the first time that the
compensation liability of a labor union has been called into question
over a matter involving death from overwork.
US$=\109 (June 1, 2004)
-10% of high school graduates becoming job-hopping "freeters"-
In April, the Japan Senior High School Teachers and Staff Union
(Nikkokyo) and the National Federation of Private School Teachers
and Staff Union (Zenkoku Shikyoren) (both of which are members of the
All Japan Teachers and Staffs Union) announced the results from their
fact-finding study on the employment status of high school graduates
for 2003. Results were gathered from 335 schools throughout Japan,
comprising 166 full-time regular high schools, 157 full-time vocational
high schools, 34 evening/correspondence course high schools, 13 general
studies course high schools, and 21 high school departments of schools
for disabled children. (Because the figures in the breakdown include
affiliate schools, their total exceeds the aforementioned total of 335
schools.)
The results showed that 11.1% of students sought employment but
graduated without receiving formal job offers. As a result, it is
estimated that some 25,600 high school graduates nationwide have
become "freeters."
Perceived problems include an increase in unstable forms of
employment, such as part-time, temporary or yearly contract work,
the small number of jobs offered to graduates of evening high schools,
and the difficulties faced by graduates of schools for disabled
students in finding employment.
Public Policies
-Approximately 80% of companies cut personnel expenses to curb costs,
a Cabinet Office survey reveals -
At the end of April, the Cabinet Office published the results of
a questionnaire survey on corporate activities and behavior for FY2003,
which targeted 2,473 listed companies in Tokyo, Osaka and Nagoya.
A total of 1,242 companies, comprising 689 manufacturers and 554 non
-manufacturers, sent in their responses (response rate: 50.3%).
Continued on;
http://www.jil.go.jp/english/archives/emm/2004/no.16/cabinetsurvey.htm
-Loss of jobs due to the settlement of nonperforming loans less than
expected-
According to "The progress of structural reform as seen from the
macro-economy," submitted by the Cabinet Office at a meeting of the
Council on Economic and Fiscal Policy held on May 11, the total value
of nonperforming loans settled during FY2002 by major banks was 11.7
trillion yen. Between 50,000 and 70,000 people are estimated to have
lost their jobs as a result, which amounted to a figure less than the
130,000 to 190,000 people initially anticipated. The Cabinet Office saw
this to be due to the fact that the acceleration of debt settlements
did not lead to an increase in the number of companies driven to
bankruptcy, as many bankruptcies resulted in the reorganization of
the company. As a result, unemployment did not increase as much as
initially anticipated.
US$=\109 (June 1, 2004)
News Clippings
-Uniqlo actively hiring disabled workers-
Last year, disabled workers employed by private-sector companies
averaged only 1.5% of the total number of regular employees. This
rate was less than the legally stipulated rate of 1.8%, a level which
corporations are obligated to meet. As many as 70% of large corporations
with 1,000 or more employees failed to achieve this goal.
In contrast, disabled employees account for 7.8% of all the workers
employed by Fast Retailing Co., Ltd., the company that operates Uniqlo.
This employment rate is the highest of all major Japanese companies.
Until the spring of 2001, Fast Retailing Co., Ltd. was hiring just
enough number of disabled workers to meet the legally-stipulated
employment rate. However, it began to receive reports from Okinawa
and elsewhere that service quality had improved in stores that hired
disabled people. As one company official says, "Having a disabled
worker in a store boosts awareness and support among other employees,
because they try to make up for the weakness and bolster the strengths
of the disabled individual. This attitude of caring leads to more
personalized customer service, drawing more customers as a result."
One or more workers with disability are employed in 80% of Uniqlo's
615 stores. The rate of disabled workers is expected to rise even
further in the long term.
(Nihon Keizai Shimbun, May)
-87% of manufacturers positively considering the employment of temporary
workers in factories-
A survey on industrial employment conducted by Nihon Keizai Shimbun
revealed that 22% of companies surveyed already employ temporary
workers at their manufacturing sites, a previously banned practice
that was legalized only in March of this year. The rate soared to 87%
when including companies considering such moves.
A questionnaire was sent to 178 large-scale manufacturers with
production bases in Japan. It asked whether or not companies employed
temporary workers as of March 31, both in their own factories and those
operated by their production subsidiaries. A total of 116 companies
sent in their responses.
The survey showed that 97% of responding companies put non-regular
employees in charge of factory production. The largest proportion of
companies--42%--said non-regular employees make up more than 10% but
less than 30% of their work force. Three companies said that over 70%
of their employees were non-regular workers.
(Nikkei Sangyo Shimbun, May)
Special Issue
-Issues relating to foreign workers in Japan-
As birthrates continue to fall, it is clear that both Japan's
population and the number of people of working age (aged between 15
and 64) face an imminent decline. To maintain current production
capabilities, Japan must secure more workers as an issue of extreme
urgency.
Most people predict that Japan, an island country perceived to have
an ethnically homogenous population, cannot do without foreign workers.
Continued on;
http://www.jil.go.jp/english/archives/emm/2004/no.16/foreignworkers.html
