The JIL Labor Flash Vol.2
Email Journal 15.08.2001
We hope The JIL Labor Flash would be of interest to you.
You can recieve the most up-to-date information twice a month, and
membership is free.
We are looking forward your quick registration.
Introduction
Message from JIL Chairman
Statistical Reports
Recent Statistical Survey Reports / TANKAN
Current Topics
Large companies announce workforce reduction plans...etc
[Public Policy]
Extension of the maximum period for terminable employment contracts
...etc
News Clippings
Competition for lower prices intensifying in the restaurant industry
...etc
Special Issue
Implications of the results of the Upper House election
Introduction
This is the second issue of a free English-language e-mail newsletter
("The JIL Labor Flash-E-mail Journal") that we offer to people who are
interested in Japanese labor issues. We also hope this newsletter will
be of interest to people at foreign firms already operating in Japan,
firms seeking entry to Japan and all those concerned.
We will keep the newsletter compact, yet filled with information that
shows in vivid outline the "big picture" of what is happening on the
Japanese labor relations front.
We ask for your requests and views to help us continue working to make
this newsletter relevant and useful.
Message from JIL Chairman
Dear Readers,
As many of you know well the JIL has been publishing Japan Labor
Bulletin for 40 years, providing vital information
on Japanese labor in English to readers all over the World, it is
regarded as a most reliable and comprehensive source on Japanese
labor and industrial relations.
In my capacity as Chairman of the Institute I am very pleased and
proud that we are now able to provide information of the same quality
in a more timely way in this new media and hope that you will enjoy
the JIL Labor Flash.
Message from Chairman, Prof. Dr. Tadashi Hanami
Statistical Reports
-Recent Statistical Survey Reports-
Features
Condition on Agreement of Spring Wage Offensive (2001)
Report on Employment Service (June)
http://www.jil.go.jp/estatis/e2001-07.htm
-TANKAN-
Short-term Economic Survey of Enterprises in Japan
-Monday July 2, released by the Bank of Japan
http://www.boj.or.jp/en/siryo/stat/tk0106.htm
Current Topics
-The Japan Federation of Employers' Association (Nikkeiren) and
the Japanese Trade Unions Confederation (Rengo) demand that employment
measures be beefed up-
At his July 13 meeting with the Minister of Finance Shiokawa,
Nikkeiren President Hiroshi Okuda announced his support for the Koizumi
Administration's reform policies that focus on disposing of bad loans
to revive the ailing Japanese economy. Okuda strongly urged the Japanese
government to set up employment "safety nets" to deal with problems
that are anticipated to arise during the course of disposing the loans.
Continued on
http://www.jil.go.jp/english/archives/emm/2001-2003/2001/vol.2/japanfederation.html
-Large companies announce workforce reduction plans-
Japanese electric companies have recently announced their personnel
restructuring plans in rapid succession, drawing widespread public
interest.
One company has become the focus of particular attention:
Matsushita Electric Industrial, a company that championed Japan's
lifelong employment system ever since it was founded by Konosuke
Matsushita, announced its first-ever personnel downsizing plan on
July 31.
Continued on
http://www.jil.go.jp/english/archives/emm/2001-2003/2001/vol.2/largecompanies.html
Public Policies
-Extension of the maximum period for terminable employment contracts-
On July 24, the Japanese government's Comprehensive Regulation Reform
Conference issued an interim report, outlining concrete measures for
implementing future regulation reforms. In the labor sector, the scope
for which the term "temporary workers" applies will be expanded to
include manufacturing operations. The government's aim is to diversify
the employment format and style. In addition, the maximum period of
terminable employment contracts will be extended to five years.
Continued on
http://www.jil.go.jp/english/archives/emm/2001-2003/2001/vol.2/employmentcontracts.html
-The Ministry of Economy, Trade and Industry (METI) and the Ministry of
Health, Labour and Welfare (MHLW) to collaborate in regional employment
measures-
Until now, METI and MHLW have not collaborated extensively, with the
former concentrating on supporting small businesses, and the latter,
on assisting employment. Their weak collaboration was the ill effects
of the administration system's vertical structure. With the worsening
of the employment situation, the two ministries have decided on July 31
to collaborate to introduce detailed employment measures. Included
among the programs are the reduction of employment mismatches through
active provision of employment and other information sent in from
the regional chambers of commerce's one million corporate members.
In addition to these, establishment of a "program for employment
measures" (tentative) will be carried out by the end of August.
According to the ministries,the information will cater to the specific
needs and situations of various regions.
News Clippings
-Competition for lower prices intensifying in the restaurant industry-
On August 1, Yoshinoya and other leading gyudon (beef bowl) chains
slashed their prices. The No. 1 chain Yoshinoya began by reducing the
price of regular-size beef bowl from 400 yen to 280 yen-a rock-bottom
level for making profits. Other chain stores followed suit by cutting
back their prices to comparable levels. Their concerted move is attracting
notice as a measure challenging other restaurant businesses to reduce
their prices as a counterattack.
(Nihon Keizai Shimbun, Tokyo Shimbun, and others, August)
-Recent Upper House election reveals Rengo's decline as a powerful
vote-getter-
The 7.3 million-member Japanese Trade Unions Confederation, or Rengo,
fielded nine Democratic Party members as their "intra-organization"
candidates for the Upper House election, vying to capture 6.3 million
votes through proportional representation's new system of allowing the
voters to write candidates' names. However, Rengo managed to win only
1.69 million votes, and three candidates lost.
One union executive said, "The results of the election show that the
organizational power of the current labor unions has weakened. We feel
the need to overhaul union activities, once and for all."
(Mainichi Shimbun, August)
-NTT Labor Union to conditionally accept the company's plan to
streamline approximately 110,000 employees including those of group
corporations-
The Union announced its policy of accepting NTT's streamlining proposal
with conditions attached. For the approximately 58,000 employees aged
50 and older to whom the unilateral retirement and re-employment package
applies, the Union demands that NTT pay, in addition to retirement
allowance, a lump sum corresponding to the reduction in wages that the
employee would
suffer as a result of the restructuring. The aim is to have an employee's
lifetime wage covered 100%. The outcome of negotiations is likely to draw
interest as NTT is expected to insist on providing only 50% of the wage
reduction amount.
(Tokyo Shimbun, August)
Special Issue
-Implications of the results of the Upper House election-
On Sunday, July 29, a Upper House election was held, the first
national election since the Koizumi Cabinet was launched, and the
Liberal Democratic Party won a sweeping victory. The results of the
election showed that the LDP, which continued to suffer serious
setbacks throughout the 1990s, has rebounded, shaking off the pursuit
of the Democratic Party and other opposition parties.
Continued on
http://www.jil.go.jp/english/archives/emm/2001-2003/2001/vol.2/upperhouse.html
