The Japan Labor Flash No.74
Email Journal December 1, 2006
Statistical Reports
Main Labor Economic Indicators
Current Topics
Research Institute Estimates 10.13 Million Workers Will Face Reduction
in Overtime Payments due to White-Collar Exemption
Survey Shows 40% of Unpaid Overtime Due to "Hesitation in Reporting
Actual Overtime"
Public Policy
Labor Policy Council Subcommittee Proposes to Establish System
More Suitable to Flexible Working Styles
News Clippings
SMEs Hang Back on Measures to Extend Employment of or Re-Employ
Middle-Aged and Elderly Employees
Salaried Workers Aged 20-30 Dissatisfied with Annual Incomes
Special Issue
Kokuro and JR East Sign Full Reconciliation Agreement: Ground Laid
for Settlement of Dispute over Refusal to Hire Kokuro Members
Statistical Reports
-Main Labor Economic Indicators-
http://www.jil.go.jp/english/estatis/eshuyo/200612/index.htm
Current Topics
-Research Institute Estimates 10.13 Million Workers Will Face Reduction
in Overtime Payments due to White-Collar Exemption-
In early November, the Japan Research Institute of the Labour
Movement (Zenroren-affiliated) published its estimate of the losses
to be incurred from the adoption of the self-determined working hour
system, a Japanese-version of the "white-collar exemption" rules.
According to this, the total loss per worker will be 1.14 million yen
if white-collar workers with an annual income of 4 million yen or
more are exempted from traditional working hours, when overtime
premiums and unpaid overtime for 10.13 million workers are taken
into account.
US$=115yen (December 1, 2006)
-Survey Shows 40% of Unpaid Overtime Due to "Hesitation in Reporting
Actual Overtime"-
A survey conducted by the Research Institute for Advancement of
Living Standards (Rengo-affiliated) has shown that 39.7% of employees
who worked overtime without being paid found it difficult to report
the actual amount of overtime they worked because of their superiors'
attitudes and the general atmosphere in the workplace. The survey
also shows that other reasons for unpaid overtime are "the maximum
overtime is fixed" (32.2% of the respondents) and "the maximum
amount
of payments for overtime is fixed" (32.7%). When compared to the
results of the previous survey, these remained the top three reasons;
however, "hesitation in telling superiors the actual amount of overtime"
has topped the list, while the proportions of the other two responses
- the upper limits on overtime and amount of overtime payments - have
decreased.
When asked how overtime hours are determined, the largest proportion,
40.7 percent, said "as reported by themselves," followed by
"as
recorded on time card, electronic machines, or other" (30.6%), and
"adjustment by superiors, etc. based on records" (10.5%).
The survey, addressed to 900 employees working for private firms,
was carried out between the end of September and early October this
year. Effective answers were returned by 772 workers (males accounted
for about 60% and females about 40% of respondents; regular and non
-regular employees accounted for some 70% and 30% of respondents,
respectively).
Public Policy
-Labor Policy Council Subcommittee Proposes to Establish System
More Suitable to Flexible Working Styles-
At a meeting held on November 10, a Labor Policy Council Subcommittee,
the Study Group for Labor Conditions of the Ministry of Health, Labour
and Welfare, presented a draft of specific issues to be discussed on
future laws related to working hours. Regarding the self-determined
working hour system - a Japanese-version of the "white-collar exemption"
rules, whereby wages are paid in accordance with employees' achievements
rather than their working hours - the Subcommittee suggested that
the system should be adopted, but under a different name, i.e.
"establishment of a system more suitable to flexible working styles."
It also suggested that white-collar workers satisfying certain conditions,
such as "relatively high annual income levels," should be exempt
from
uniform application of the regulations related to working hours on the
condition that their employers be responsible for guaranteeing their
days off according to their working styles, checking excessively long
working hours, and carrying out measures to ensure their health and
welfare. At the same time, it incorporated a recommendation that
employees should have a medical check-up upon their own request if
their overtime exceeds 80 hours per month, rather than the 100 hours
currently stipulated under the Industrial Safety and Health Law.
As for the rise in the overtime premium rate (from the current 25%
to 50% for overtime exceeding 30 hours per month) suggested in the
initial proposal issued in June but furiously opposed by management,
the Subcommittee refrained from citing any specific figure. On the
whole, compared to its previous recommendations, the latest ones
seemed to be relatively restrained, as demonstrated by proposals
that payments of the proportion of increase in overtime premiums
should be replaced by endorsement of paid holidays subject to labor
-management agreement, and that the replacement by paid holidays
would be applicable only for workers whose extremely long working
hours could harm their health.
The opinions of labor and management again clashed over the latest
draft recommendations.
News Clippings
-SMEs Hang Back on Measures to Extend Employment of or Re-Employ
Middle-Aged and Elderly Employees-
In early September, the Shinkin Central Bank Research Institute
conducted a survey, addressed to small and medium-sized enterprises
through branches of Shinkin Central Bank across the country, on the
retirement of middle-aged and elderly employees. Effective replies
totaled 14,425.
The survey found that 27.6 percent of the firms surveyed had not
taken any measures to re-employ or to extend the mandatory retirement
age, and that a mere 42.8 percent had taken only some measures.
By company size, 71.8 percent of those with 200 to 300 employees have
extended the mandatory retirement age or adopted the re-employment
system, while only 22.5 percent of those with four employees or less
have done so.
The Institute's analysis notes that quite a few small firms are
comprised solely of family members, and thus have no formal system
of retirement.
While the revised Law concerning Stabilization of Employment of
Older Persons stipulates that firms should offer work opportunities
for their employees until they reach 65, the findings of the survey
show that small and medium-sized firms are reluctant to adopt those
systems.
(Nikkei Sangyo Shimbun, November)
-Salaried Workers Aged 20-30 Dissatisfied with Annual Incomes-
Career Design Center Co., Ltd., a company which manages websites
for job-switchers, carried out an Internet survey targetting
approximately 700 salaried workers in their 20s and 30s, and found
that an increasing number of workers are dissatisfied with their
current annual income levels, now that the economy is recovering.
Japan has reportedly entered its longest post-war phase of economic
growth, but many firms, it seems, are still cautious about pay raises.
The survey shows that some 70 percent of the respondents are "somewhat
dissatisfied" or "dissatisfied" with their current annual
incomes.
Greater dissatisfaction was expressed by respondents working for firms
with fewer than 100 employees, revealing the gap between their annual
incomes and those of employees of large firms.
The percentage of workers who had switched jobs in the past increased
by 3.5 percentage points from the previous fiscal year to 73.2 percent,
thanks to the current active corporate move in hiring workers with
experience in consideration of mass retirement of baby-boomers in the
near future and also the growing difficulties in recruiting new graduates.
"Salaries and other treatment" were top among reasons for job-switching
(34.5%, multiple answers accepted); behind this lies the fact that
increase expectations of higher annual income encourage those job
-switchings.
(Nikkei Sangyo Shimbun, November)
Special Issue
-Kokuro and JR East Sign Full Reconciliation Agreement: Ground Laid
for Settlement of Dispute over Refusal to Hire Kokuro Members-
On November 6 at the Central Labour Relations Commission, according
to Kyodo News, the East Japan headquarters of the National Railway
Workers' Union, known as Kokuro, and the East Japan Railway Co. (JR East)
signed a blanket reconciliation agreement ending all 61 labor disputes
between them. The disputes were brought to court by Kokuro members
calling on regional labor relations commissions for remedial action,
claiming that JR East's actions against members with regard to promotion
and personnel transfer, among other things, should be recognized as
unfair labor practices.
Continued on;
http://www.jil.go.jp/english/archives/emm/2003/no.74/74_si.html
