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.
Seen from the perspective of "numbers are a source of power," Japan's labor unions are steadily and rapidly weakening. Despite labor unions' stated declarations to "tackle the problem" and their dedicated efforts, the situation remains stagnant, with no dramatic results seen in the rate of organized labor.
The number of non-regular (or part-time) employees and young jobless people is increasing sharply. It remains difficult to organize employees working at small and medium-sized enterprises and ultra-small-scale enterprises into labor unions. A drastic initiative, similar to preventive medical treatment, is eagerly awaited. However, things are by no means easy.
The 2004 spring joint labor negotiations kicked off against this gloomy backdrop.
Like last year, the Japanese Trade Union Confederation (Rengo) has decided not to prepare a unified demand; instead, they will leave the issue up to affiliated industrial unions. Since people's disposable income has continued to decrease for five consecutive years, Rengo will focus its demands on sticking to the wage curve corresponding to the periodic wage increase amount.
One characteristic feature for this year is the amount of 5,200 yen which was announced--for the first time as an important issue on the agenda--as the benchmark for wage hike demands by small- to medium-scale unions and local unions. Moreover, the date on which all management replies will be made to SMEs was established, also for the first time, to between March 22 and 24. These were in response to loud calls by small- to medium-scale industrial unions for support. In addition, "Rengo Living Wages" of 840 yen per hour and 146,000 yen per month were established to serve as wages capable of guaranteeing a minimum standard of living. They are intended to have a ripple effect on part-time workers' wage hikes as well as on intra-corporate minimum wages.
Nippon Keidanren, (the Japan Business Federation) meanwhile, announced its position that abolition/reduction of the periodic pay raise system as well as wage reductions should be subject to labor/management negotiations. This is the first time that the organization has raised the issue of a full-scale conversion of the wage system from the conventional seniority-based pay to merit-based pay.
This policy was immediately met with sharp objections, not only from Rengo, but also from the National Confederation of Trade Unions (Zenroren) and Japan's Council of Metalworkers' Unions (IMF-JC). At a meeting held in mid-December 2003 between Rengo and Nippon Keidanren, Rengo President Kiyoshi Sasamori voiced his concern at the outset that management appears to have jettisoned its ethic of treating their employees well and aiming to co-exist harmoniously with labor. He added that Nippon Keidanren's statement was selfish and outrageous, and encouraged management to shirk their responsibilities: he could not let it pass without speaking out against it. To this, Hiroshi Okuda, President of Nippon Keidanren, replied that what he had meant to say was that labor and management must talk with each other comprehensively, and added that he would explain so to member companies.
As for the moves by Rengo's major industrial unions, the Japanese Electrical, Electronic and Information Union (Denki Rengo) decided not to demand basic pay hikes for the third straight year, while the Japan Federation of Basic Industry Workers' Union (JBU) which was set up last September after labor unions representing steel, shipbuilding, and metal-mine workers got together, determined that it was difficult to make unified wage hike demands because large differences existed in business performance among various industries.
As unified demand goals toward wage hike negotiations at the spring joint labor negotiations, Zenroren decided to finalize their policies as follows: (1) a wage hike of "more than 10,000 yen for all workers," (2) for part-time and other workers who are paid by the hour, "realization of an hourly wage of 1,000 yen for everybody, wherever he or she works," and "a hike of more than 50 yen," and (3) a nationwide, uniform minimum wage of "1,000 yen or more per hour, 7,400 yen or more per day, and 150,000 yen or more per month."
All eyes will now be focused on the results of Rengo's new programs and strategies as well as on the outcomes of the upcoming negotiations. Negotiations are expected to be rough going--even more so than last year. As far as the labor side is concerned, the results of this year's negotiations will no doubt have a major influence on the collaboration between SME and part-time workers, and on the future strategies adopted by labor union organizations.
