The Japan Labor Flash No.7
Email Journal January 15, 2004
   
          
        
        JILPT Information
      JILPT Foreign Researcher Invitation Program
      Statistical Reports
      Recent Statistical Survey Reports
      Current Topics
      Defeat of the National Railway Workers' Union's lawsuit finalized 
      as the Supreme Court issues a ruling on JR companies' nonemployment 
      case
      Public Policies
      An outline of the industrial court system drawn up: Labor and 
      management representatives to serve as industrial judges
      News Clippings
      Unpaid overtime work worth 5.3 billion yen ...etc
      Special Issue
      As the 2004 spring joint labor negotiations kick off, Labor unions' 
      membership rate drops below the 20% mark
      [Greetings from JILPT President] 
JILPT Information
      1. Purpose 
      This program invites foreign researchers to Japan and provides 
      them with opportunities for conducting research on labor policy 
      and labor issues in Japan, with the ultimate goal of improving 
      the quality of labor policy research in Japan.
      
      2. Programs 
      Program types: 
      1) Long-term invitation program: 1-12 months
      2) Short-term invitation program: Less than 1 month
 
      Expenses
      Travel and living expenses will be covered. 
 
      Requirements: 
      1) Must conduct research on Japanese labor policies or other labor 
      issues.
      2) Must submit a research report to the JILPT at the end of their 
      stay.
      3) Must be affiliated with a labor research institute or university 
      (excluding graduate students)
      4) Must possess adequate command of Japanese or English
      5) Must conduct research and remain with the JILPT
      6) Must be in good enough health to carry out and complete intended 
      studies
      
      3. Application deadline
      Applications are accepted annually. We are currently accepting 
      applications for 2004 (April 2004 to March 2005). If you would 
      like to apply for this year, please submit your application documents 
      by February 20, 2004.
      
      For more details, please refer to:
      Application Process for the Long-term Foreign Researcher Invitation 
      Program
      http://www.jil.go.jp/english/documents/longtermFRIP.pdf
 
      Application Process for the Short-term Foreign Researcher Invitation 
      Program
http://www.jil.go.jp/english/documents/shorttermFRIP.pdf
 
      http://www.jil.go.jp/english/documents/application_000.doc
      
      ※You can view PDF files with Acrobat Reader which's available at 
      no cost from Adobe's Web site.
      http://www.adobe.com/products/acrobat/readstep2.html
      
      Statistical Reports
      
      -Recent Statistical Survey Reports December 2003-
 
      Features
      21st Century Survey on New-Born Infant (Second round) 
      Basic Survey on Labor Unions (2003) …etc 
      
      http://www.jil.go.jp/english/estatis/esaikin/2003/e2003-12.htm
 
      Current Topics
      
      -Defeat of the National Railway Workers' Union's lawsuit finalized 
      as the Supreme Court issues a ruling on JR companies' nonemployment 
      case-
 
      After the former Japan National Railways was split up and privatized 
      in 1987, the newly formed JR companies refused to employ members of 
      the former company's labor unions. A lawsuit was subsequently filed, 
      and in December 2003, the Supreme Court issued a ruling of the third 
      instance on said case.
 
      The Supreme Court supported the first and second trials that 
      nullified the relief order issued by the Central Labor Committee 
      (which recognized said nonemployment as an unfair labor practice and 
      ordered the JR companies to hire former union members), and rejected 
      the appeal of the Central Labor Committee which objected to such support.
      
      As the reason, the court stated that, as the "employer" of the 
      Labor 
      Union Law, JR is not held responsible for unfair labor practices.
      
      Privatization of a giant state-owned enterprise drew strong public 
      interest at the time. Personnel treatment and re-hiring of employees 
      also became the focus of attention. The lawsuit, covering a 16-year 
      period, demanded that JR withdraw its policy of "employment 
      discrimination" and re-employ former union members. The case finally 
      
      came to an end with the defeat of the National Railway Workers' Union.
      
      Throughout this period, labor unions affiliated with the former 
      Japan National Railways underwent a series of realignments. Both labor 
      and management experienced substantial hardships and distress. Although 
      
      the long trial was resolved, it appears that the system of labor 
      committees itself has been put to the test.
      
      Public Policies
      
      -An outline of the industrial court system drawn up: Labor and 
      management representatives to serve as industrial judges- 
 
      In December 2003, the commission investigating labor issues 
      affiliated with the government's task force on judicial reform decided 
      to establish and introduce an "Industrial Court System" (provisional 
      
      name) and drew up an outline of the system. The aim is to resolve 
      individual labor disputes in a speedy, appropriate, and effective 
      manner.
 
      Under the planned system, a trial can be held a maximum of three 
      times, in principle, and will be conducted by a total of three 
      individuals: one labor examiner-in-chief who is a judge, and two 
      industrial judges chosen from labor and management who have extensive 
      knowledge and experience of employment and labor-management relations. 
      Proceedings can be carried out regardless of the intentions of the 
      other party, with a majority opinion required to reach a decision.
      
      If no objections are filed within two weeks of the verdict, the 
      trial is finalized, and arbitration is complete. This arbitration 
      has the same validity as a court settlement. Under this system, 
      if there are objections, the case is brought to court. The system 
      is planned to be launched next year.
      
      News Clippings
      
      -Unpaid overtime work worth 5.3 billion yen-
 
      Chubu Electric Power (Head Office: Nagoya) announced that it had 
      paid a total of 5.36 billion yen to 11,950 people, or 64% of its total 
      employees, to cover unpaid overtime work done between April 2001 and 
      December 2002. The amount corresponds to an average of 448,000 yen 
      per person.
 
      If payments made in September 2003 to some of the employees are 
      included, the company will have paid a total of 6.52 billion yen to 
      a total of 19,850 employees. This greatly surpassed the past record 
      of 3.5 billion yen which Takefuji, a consumer loan company, had paid 
      to approximately 5,000 of its employees. (See JIL Vol. 48)
 
      1US$=\106 (February 2004)
      (Asahi Shimbun, December)
      
      
      -Childcare/maternity leave progressing ahead of the planned revision 
      of the law-
 
      A growing number of companies are enhancing their childcare/maternity 
      leave programs. The Child and Family Care Leave Law is slated to be 
      revised in 2004. Many companies are taking steps ahead of the planned 
      legislative change to reexamine their programs in the hope of securing 
      top quality personnel.
 
      Asahi Chemical Industry extended the eligibility for taking shorter 
      work hours for childcare, from the existing "until a child reaches 
      
      age three" to "until a child starts elementary school." Over 
      the one 
      year since December 2002, about 120 of its employees took childcare
      /maternity leave, with 99% of the employees who gave birth opting for 
      it.
      
      Mazda Motor has established a system that allows employees to take 
      paid leave for 10 days per year, at 70% of their usual salary, for 
      childcare and/or nursing care purposes. This is in addition to normal 
      paid leave. The company previously introduced other programs, such 
      as extending in 2002 the eligibility for taking shorter work hours 
      to "until a child completes his or her second year in elementary 
      school," and setting up an in-house childcare facility.
      (Nihon Keizai Shimbun, December)
 
 
      -Toyota abolishes "age-linked wages" and establishes "proficiency
      -linked wages" and "post/assignment-linked wages"-
 
      Beginning in April 2004, Toyota Motor will introduce a new wage 
      system. It will abolish "age-linked wages" of skilled workers 
      employed 
      in factories, and instead, establish "proficiency-linked wages" 
      and 
 "post/assignment-linked wages" that reflect an employee's 
      experience 
      and the content of his or her work. A skilled worker's age-related 
      wages account for about 20% of standard wages. Since 1999, Toyota 
      has been progressively abolishing age-linked wages, beginning with 
      the clerical and technical staff. With the introduction of this new 
      system, age-linked wages will be completely abolished.
 
      By fall, the company plans to introduce a retirement allowance 
      program that follows a points system based on an employee's pre
      -retirement qualifications and post. As a result, the wage system 
      will de-emphasize elements of seniority and focus more on experience 
      and accomplishments.
      
      Toyota's abolishment of age-linked wages will most likely accelerate 
      the shift to merit-based wage systems in industry as a whole.
      (Asahi Shimbun and Nihon Keizai Shimbun, December)
      Special Issue
 
      -As the 2004 spring joint labor negotiations kick off, Labor unions' 
      membership rate drops below the 20% mark-
      
      As we have reported many times in our past issues, Japanese labor 
      unions are unable to halt their declining rate of membership. Last 
      yearend, they announced that the rate had dropped below the 20% mark 
      for the first time, or 19.6%. What crossed the minds of most labor 
      personnel was that a dreaded milestone on a downward-leading road has 
      been reached.
 
      Continued on;
      http://www.jil.go.jp/english/archives/emm/2004/no.7/sjln2004.html
 
Greetings from JILPT
 
      Dear Friends,
      
      Last year, JIL was reorganized as an entity for carrying out both 
      research and programs that link research with training, and which 
      would contribute even more effectively to labor policies. We made a 
      fresh start as JILPT, an independent administrative institution.
 
      Japan is presently implementing a series of structural reforms. 
      The underlying notion is the recognition that unless various systems 
      that were set up after WWII are upgraded to better versions, our 
      country will sooner or later arrive at a dead end in its development.
      A number of attempts that follow this trend have already been made in 
      the labor sector as well, many of which we have covered in our past 
      issues.
      While many improvements have been made, new and serious challenges 
      have also emerged, including an increase in long working hours and 
      loss of job security.
      
      Needless to say, Japan is not the only country that faces endless 
      challenges to eliminate working people's fears and anxieties, including 
      
      the need to ensure full employment and job security.
      As in the past, even greater ingenuity and efforts are required in 2004 
      
      to solve these and other labor problems.
      
      With the continued support of readers such as yourself, we at the 
      newly created JILPT hope to move forward one step at a time. 
      We encourage all of you to study and think with us.
      
      On behalf of everyone at JILPT, I wish you a happy, healthy, and 
      productive year.
      
      Dr. Akira Ono, President of JILPT







