The JIL Labor FlashVol.11
Email Journal 17.01.2002

   A New Year Message from the JIL chairman
   Statistical Reports
     Recent Statistical Survey Reports
   Current Topics
     Latest Labor Union Membership Figures
   Public Policies
     The FY2002 Government Budget Proposal and its Characteristics
   News Clippings
     Toyota Unveils a "New Model" for its Personnel Assessment Setup ...etc
   Special Issue
     Work Sharing, the First Important Labor Topic of 2002   


   A New Year Message from the JIL chairman
  
  Dear friends,

    I wish you health, happiness and fulfillment in the year of 2002.
  Last year started new Millennium with full of hope but ended up in
  fear and dismay after the tragedy in New York.The world economic
  focus is still pessimistic and we even anticipate more hunger and
  spread of disease in certain parts of the world although we have
  recently observed some good sign in some parts. 
  In general we are afraid of further developing discrepancy and conflicts
  as a result of growing uneven distribution of wealth both in national
  and international scale together with the threat of increasing environmental
  derogation in world-wide scale.
  Thus we expect the growing importance of our efforts to promote health
  and welfare of working people as well as decent working life of all
  people on this earth. The world of labor in facing to the tremendous
  challenge caused by serious economic problems, tremendous change of
  technology, globalization, needs for fundamental reexamination of the
  traditional approach of industrial relations and human resource management.
  We are facing to the needs of drastic transformation of such basic
  principles and concepts of employer and employee, regular v. non-regular,
  typical v. atypical labor, tripartite social partnership etc.
  Today we realize the needs of further development of comparative research
  and studies, exchange of ideas and experiences from different parts
  of the world in the field of labor. Our task is not an easy one. But the
  harder our task is the more fruits we can expect.           
  The Japan Institute of Labor will continue to strengthen our efforts
  for study, research, collection and distribution of data and information,
  international exchange and joint work in the field of labor and wish your
  kind support and close working relationship in this year.

   Professor Dr. Tadashi Hanami, Chairman 


   Statistical Reports

   -Recent Statistical Survey Reports-
  
   Features
    Basic Survey on Labour Unions (2001)
    Report on Employment Service (November) 
    Family Income and Expenditure Survey (November) ...etc
   
   http://www.jil.go.jp/estatis/e2001-12.htm   


   Current Topics

   -Latest Labor Union Membership Figures-

    The Ministry of Health, Labour and Welfare announced the results of
  their latest Basic Survey on Labor Unions late last year.

    According to the survey, total labor union membership in Japan was 11,
  212,000 persons, or 20.7% of all working people. Union membership has
  declined in all industries, in all union size categories, and in all
  major union confederations.

    Among the major labor unions, membership of the Japanese Trade Union
  Confederation (Rengo) declined by 195,000 from the previous year,
  falling to 7,120,000 persons (down 2.7%); membership of the National
  Confederation of Trade Unions (Zenroren) fell by 24,000 to 1,012,000
  persons (down 2.3%); and National Trade Union Council (Zenrokyo)
  membership fell by 11,000 to 250,000 persons (down 4.1%).

    Declining labor union membership can be attributed in part to the
  large-scale employee cuts being undertaken by the corporate majors.
  Something clearly must be done to prevent labor union membership from
  falling below 20% of all workers.  


   Public Policies

   -The FY2002 Government Budget Proposal and its Characteristics-
  
    Prime Minister Koizumi's Cabinet, to balance the national budget
  and undertake structural reforms as top priority while addressing
  problems of a burgeoning deficit and an aging population, announced
  the national budgetary proposal for FY2002 on December 24, 2001.
  Total fiscal expenditure, at 81.23 trillion yen, fell 1.7% from the
  previous fiscal year.

    The government, which only just kept its campaign promise of limiting
  government bond issues to under 30 trillion yen, announced the first
  budgetary proposal in four years to curtail spending, despite vocal
  opposition claiming that economic stimulus designed to halt the
  recession is more important than reform at this stage.

   Continued on;
   http://www.jil.go.jp/english/archives/emm/2001-2003/2002a/vol.11/fy2002.html


   News Clippings

   -Toyota Unveils a "New Model" for its Personnel Assessment Setup-
   
    Toyota Motor announced that it will greatly redefine the scope of
  Group or Section Managers' opertions. In the past, the primary requirement
  of Toyota managers lay in their ability to both lead and be a part
  of the staff, i.e., do the same work as their subordinates. Beginning
  January 1, 2002, Group and Section Managers will be expected to show
  both administrative and leadership skills. Assessment of managers will
  now include their ability to educate and train subordinates. The post
  will be renamed as "Group Leader." Under the new system, managers will
  also be required to help their subordinates by finding the best career
  path for them and enhancing their motivation.

    Toyota introduced this new personnel assessment system because, while
  they recognize the importance of a results-oriented approach, they also
  believe that personal accomplishments at the managerial level are not
  the only factor that leads to improved corporate performance.

    Toyota recorded the highest consolidated ordinary profit figure in
  its history in its September 2001 interim consolidated balance statement.
  Asked why the company is planning to introduce this change when it is
  performing so well, Toyota explains that a company becomes stronger
  when organizational and personal goals mesh. Many companies in Japan
  are introducing a results-oriented approach as their performance declines.
  The choice made by Toyota, which is diametrically opposed to such a
  path, can therefore be expected to make a significant impact on Japan's
  corporate culture.
                                                 (Asahi Shimbun, January)

   -Self-Defense Forces Privates Becoming More Highly Educated-
  
    With the unemployment rate exceeding 5%, many university graduates
  are applying to become Privates in the Self-Defense Forces, a path
  open in principle to high school graduates. In 2000, university and
  college graduates accounted for 12.5% of all Self-Defense Forces Privates,
  up from just 1.0% in 1990. According to Defense Agency figures, university
  and college/technical college graduates accounted for between 1.0% and
  1.7% of all Privates in the years 1990 through 1993, but this percentage
  began increasing rapidly after the Bubble Economy burst, reaching 4.6%
  in 1994 and exceeding 10% in 1999.

    A recruitment officer for the Defense Agency points out that the
  lingering recession is resulting in greater numbers of applications
  to join the Self-Defense Forces by more highly educated students.
  The recruitment officer says that they no longer have to pay house
  calls to encourage applications: now, they only need to post notices
  at schools. A Self-Defense Forces field officer points that this
  situation is completely new, creating unforeseen problems, such as
  that of veteran Self-Defense Forces members having to give orders
  to lower-ranking but better-educated recruits.
                                                 (Sankei Shimbun, January)

   -Corporate Presidents Getting Younger: Average Age now 53-
  
    Nihon Keizai Shimbun compiled a study of 97 major corporations that
  announced new presidents in the latter half of 2001 (July 1 through
  December 28). According to this study, the average age of the new
  presidents was 53.2, which was 2.9 years younger than that for the same
  period last year. Although the percentage of presidents promoted from
  the position of vice president increased, corporations are now tending
  to appoint younger vice presidents in their attempts to push through
  structural reforms. By age, new presidents in their 50s increased by
  4.3% over the same period in the previous year to reach 44.3%; new
  presidents in their 40s increased 3.6% to 21.6%; and new presidents
  in their 30s increased 7.3% to 9.3%. With this increase in the percentage
  of younger presidents came a corresponding decrease in the percentage
  of older presidents. New presidents in their 60s declined 12.3% to 23.7%.
                                              (Nihon Keizai Shimbun, January)
 


   Special Issue

   -Work Sharing, the First Important Labor Topic of 2002-
   
    Newspapers in the opening days of 2002 were filled with articles
  that reviewed the accomplishments of Prime Minister Koizumi in his
  first eight months in office and focused on prospects for reform and
  economic recovery.

    With the economy in a mildly deflationary and lingering recession
  and with the labor market sputtering as a result, there is little
  reason to believe that the Shunto spring labor negotiations in 2002
  will result in significant wage increases. Because of this, attention
  in the labor market has turned to work sharing.

   Continued on;
   http://www.jil.go.jp/english/archives/emm/2001-2003/2002a/vol.11/worksharing.html