The Japan Labor Flash No.27
Email Journal November 15, 2004

Statistical Reports
Recent Statistical Survey Reports
Current Topics
Private corporations expected to increase winter bonuses …etc
Public Policies
Campaigns launched by the Ministry of Health, Labour and Welfare
in November
News Clippings
Fuji Xerox policy allows "moonlighting" by employees 50 years and
older …etc
Special Issue
Japanese people overwork, ILO points out


Statistical Reports

-Recent Statistical Survey Reports October 2004-

Features
Survey on Actual Status of Disabled Persons' Employment (2003)
Awareness Survey on Livelihood …etc

http://www.jil.go.jp/english/estatis/esaikin/2004/e2004-10.htm


Current Topics

-Private corporations expected to increase winter bonuses-

On October 27, Nippon Keidanren (Japan Business Federation) released
its interim report on year-end bonuses and lump sum payments (winter
bonuses) set to be paid out by large-scale corporations this year.
Of 288 large corporations representing 22 major business categories,
227 have reached a settlement regarding their winter bonus payments.
After excluding 94 companies whose average amount could not be
identified, the weighted average figure for 133 companies came to
823,489 yen per union member, up 2.55% from the previous year.
By type of business, the iron and steel sector posted a dramatic
growth rate of 37.98%.

Dai-Ichi Life Research Institute also released its forecast for
winter bonuses to be paid out by private-sector corporations this year.

The institute predicts that the average payment per employee
(including part-time workers) at private corporations with five or
more employees will be 434,500 yen, an increase of 1.4% from the
previous year. This constitutes the first year-on-year increase in
winter bonuses in eight years. According to their forecast, a clear
upward trend in employee wages--which have hitherto experienced sluggish
growth--is expected as a result of increased bonus payments.

US$=\105 (November 15, 2004)


-Court of second instance orders payment of 230 million yen as
compensation for gender wage gap-

According to a Kyodo News Agency report, an appeals court ruling
was issued in favor of nineteen female employees of Uchiyama
Manufacturing Corporation, an Okayama City-based industrial rubber
manufacturer, regarding a lawsuit in which the women alleged that
the company's practice of rewarding lower wages to women solely due
to their gender was a breach of law. The court ordered that the
company pay an amount corresponding to the gender wage differential
covering a period of 14 years. The Okayama District Court had ordered
that the company pay approximately 200 million yen, but on October 28,
the Okayama branch of the Hiroshima High Court changed the compensation
total to approximately 230 million yen.

The chief judge stated that no clear difference could be seen between
the duties handled by men and women, and that the wage disparity
constituted an irrational discrimination. Compensation was therefore
increased by the amount demanded anew by the female employees after
the court of the first instance ruling.

According to the verdict, the female employees, who worked in
Uchiyama's factories, engaged in the molding of rubber products, and
conducted tests. Their basic pay was established at levels lower than
those of their male counterparts with the same number of years in
service and other similar qualifications. Furthermore, bonus and
retirement payments for female employees were calculated by multiplying
the basic pay by coefficients lower than those used for male employees.


Public Policies

-Campaigns launched by the Ministry of Health, Labour and Welfare
in November-

The Ministry of Health, Labour and Welfare is running seven campaigns
in November. Below is a rundown to its main initiatives:

The first is the Vocational Skills Development Promotion Month
initiative. The Ministry has designated November 10 Skills Day, and
will engage in publicity activities aimed at promoting the development
of vocational skills and capabilities, and the creation of an attractive
skills-oriented society. A number of events will be held during this
year's campaign period, including a ceremony in which the Minister
of Health, Labour and Welfare will name outstanding technicians and
craftsmen "Contemporary Master Craftsmen."

Next is the Campaign Month to Eliminate Unpaid Overtime Work
initiative, a campaign that encourages both labor and management to
implement voluntary programs to eliminate unpaid overtime work.
Besides carrying out awareness programs and requesting the cooperation
of business owner organizations, the Ministry will set up a nationwide
toll-free number to offer free phone consultation services on Japan's
Labor Thanksgiving Day, November 23. Officials in charge at prefectural
labor bureaus will answer incoming calls and offer advice.

In response, Rengo (Japanese Trade Union Confederation) has
designated November the Unpaid Overtime Work Eradication Month, and
has been conducting a campaign aimed at eliminating unpaid overtime
work. An exclusive hotline will be set up for four days in mid-November,
through which operators will gather factual information from callers.
If a case is deemed to be malicious, Rengo may notify or bring charges
to the Labour Standards Inspection Office, and disclose the name of
the corporation(s).

Moreover, the Ministry has designated November--with two national
holidays, Culture Day and Labor Thanksgiving Day--the Comfortable
Lifestyle Creation Month, and plans to carry out concentrated publicity
and awareness activities aimed at reducing work hours. The Ministry
will hold Symposia on Accelerating the Spread and Acceptance of
Extended Leave Systems at ten locations throughout Japan this month.

An annual campaign dubbed the Construction-Sector Employment Improvement
Month initiative is also being implemented.


News Clippings

-Fuji Xerox policy allows "moonlighting" by employees 50 years and
older-

A year has passed since Fuji Xerox introduced the Double Job Program,
under which employees over the age of 50 are permitted to take up new
jobs while maintaining their main line of work. This unique program,
which makes use of veteran workers' skills and experience, is drawing
strong interest among many corporations.

The Double Job Program is part of Fuji Xerox's New Work Support
Program, which it introduced in September 2003. The company aims to
provide diverse workstyle options to senior employees aged 50 and
older, and "to help employees design their post-retirement life
plans," according to a Fuji Xerox official. The strategy also aims
to reinvigorate employees and increase their mobility. Older employees
reap great benefits from the program by preparing for their impending
life after retirement.

The Double Job Program allows employees to take on a side job that
they themselves apply for, rather additional posts issued under
corporate orders. One condition is that the such work must be
restricted to less than 30% of an employee's total work volume.

Specific side jobs approved by Fuji Xerox include career consultancy
and environmental management standards evaluation. At present,
approximately 3,500 employees are over the age of 50, accounting for
25% of the company's total work force.
(Nikkei Sangyo Shimbun, October)


-Shiseido and Sony call for voluntary early retirement among employees-

In October, Shiseido and Sony announced plans to call for voluntary
early retirement among their employees.

Shiseido called for approximately 1,000 applications from employees
aged between 50 and 59 who are affiliated with the company's domestic
group companies, and who will have been with the company for 15 years
or longer at the end of March 2005. Applicants will receive special
payments in addition to usual retirement allowances, as well as
re-employment support. The firm aims to curtail personnel expenses
and increase profitability by rectifying their current high-cost setup.

Sony, for its part, will target employees aged 35 and older who
have worked with the company for 10 years or longer. On top of usual
retirement allowances, the company will pay out additional payments
worth up to 60 months of the employee's base pay.

Sony announced a 3-year plan, beginning in FY2003, to downsize
the workforce at its domestic group companies by approximately 7,000.
In FY2003, its overall payroll, including that of Sony Corporation
itself, was trimmed by approximately 5,000 staff.
(Mainichi Shimbun and Nihon Keizai Shimbun, October)


Special Issue

-Japanese people overwork, ILO points out-

According to the results of a recent ILO survey, more than one out
of four Japanese people work more than 50 hours per week.

The survey compared the proportion of people who worked 50 hours
or more per week--an indicator of overwork--among advanced countries.

Continued on;
http://www.jil.go.jp/english/archives/emm/2004/no.27/27_si.html