The JIL Labor Flash Vol.12
Email Journal 01.02.2002

  Statistical Reports
     Main Labour Economic Indicators
   Current Topics
     2002 Shunto Spring Labor Negotiations Begin
   Public Policies
     Advisory Guideline on Reconciling Work with Childcare and Nursing Care
     ...etc
   News Clippings
     Newspaper Articles on Work Sharing Featured in Three Newspapers
   Special Issue
     Japan's Population to Begin Decreasing Sooner


Statistical Reports

   -Main Labour Economic Indicators January 2002-
  
   http://www.jil.go.jp/estatis/eshuyo/200201/econtents.htm
  


   Current Topics

   -2002 Shunto Spring Labor Negotiations Begin-
  
    On January 11, the Japan Federation of Employers' Associations
  (Nikkeiren) at its extraordinary general meeting adopted the Nikkeiren
  Position Paper 2002, which serves as a guideline for employers going
  into yearly Shunto labor negotiations. Similarly, the Japanese Trade
  Union Confederation (Rengo)-taking its cue from an enlarged tactical
  meeting held on January 9-held a Central Struggle Committee meeting
  on the same day (January 11) and set aside the third week in March for
  intensive talks with employers. The National Confederation of Trade
  Unions (Zenroren) also put together a unified guideline demanding a
  monthly wage increase of 15,000 yen, a minimum hourly wage of 1,000 yen
  for part-time workers, and minimum wage levels of 1,000 yen per hour,
  7,400 yen per day, and 150,000 yen per month for ordinary workers.
  Zenroren also set aside the day following employer responses to its
  demands (scheduled for mid-March) for "coordinated national action."
  As these examples show, programs leading up to the 2002 Shunto negotiations
  are already well under way.

   1US$≒\133 (January 2002)

   Continued on;
   http://www.jil.go.jp/english/archives/emm/2001-2003/2002a/vol.12/shunto2002.htm
  


   Public Policies

   -Advisory Guideline on Reconciling Work with Childcare and Nursing Care-
   
    The Labor Policy Council submitted an advisory guideline for employers
  to the Minister of Health, Labor and Welfare following a partial revision
  to the Child Care and Nursing Care Leave Law, introduced in November 2001.

    The guideline cites specific examples of the types of activities
  prohibited under the revised law. Specifically, employers are prohibited
  from firing, downgrading full-time workers to part-time workers, laying
  off, or demoting employees who apply for child care or nursing care leave.

    The guideline also notes that "encouraged" retirement or switching
  an employee from full employee status to subsidiary employee status
  will be prohibited, even with the apparent agreement of the employee,
  if the agreement was deemed to be made under coercion. Taking work
  away from employees or assigning them to clearly non-essential jobs
  are also defined in the guideline as "Degrading the work environment."
 
 
   -1.85 Million Jobs to be Created through the e-Japan Project-
  
    The Information and Communication Economy Institute, part of the
  Ministry of Public Management, Home Affairs, Posts and Telecommunications,
  announced the results of a study on the effects that the government's
  e-Japan Project (scheduled for FY2001-2005) are predicted to have on
  the domestic economy.

    According to the Institute's calculations, increased public investment
  and the resulting production increases in the relevant sectors will
  result in 1.85 million more jobs by the end of fiscal 2005. This is
  projected to push up the latent economic growth rate by an additional
  0.5% and increase productivity per worker by 2.8-3.5%.

    Increased Internet use is expected to push down the costs of distribution
  and logistics, thus reducing product prices and stimulating consumer
  demand by an additional 27,000 yen per person per year. The report
  states that the spread of electronic trading and increased purchases
  of IT products can be expected to push consumption up by 178,000 yen
  a year per person in total.

    The e-Japan Project seeks to connect 30 million households in Japan
  to high-speed Internet services by FY2005 and make Japan a world IT
  leader nation.
 


   News Clippings

   Newspaper Articles on Work Sharing Featured in Three Newspapers
  
   -85% of Keidanren Member Companies "Will Not" Adopt Work Sharing-
   
    The Japan Federation of Economic Organizations (Keidanren) conducted
  a survey on work sharing among its 1,100 member corporations and received
  replies from 306 companies. According to this survey, 6% of the companies
  surveyed already adopt work sharing and 9% are planning to adopt it, 
  but 85% will not adopt work sharing for the time being. Keidanren
  believes that most companies are unwilling to implement work sharing
  because of fears that it will lead to decreased productivity.
  Of the companies that have agreements with labor unions, and already
  use or are planning to use work sharing, 11% have chosen work sharing
  specifically  to reduce work hours per employee and thus create additional
  jobs. Although this type of work sharing arrangement is expected to be
  the focus of much discussion during the forthcoming Shunto negotiations,
  the survey showed that companies adopting this type of arrangement
  were still very much in the minority.

    Keidanren Chairman Takashi Imai stated that because what constitutes
  work sharing is still nebulous, meaningful discussions should not begin
  unless the definition of work sharing is made clearer.
                                            (Nihon Keizai Shimbun, January)

   -Freedom to Hold Second Jobs Suggested to Make Up for Salary Decreases
    Coming from Work Sharing-
  
    The Japanese Electrical, Electronic and Information Union have
  announced that they are recommending their affiliated trade unions to
  demand the freedom to hold second jobs in their negotiations with
  employers during the forthcoming Shunto negotiations. The demand is
  designed to make up for employee salary decreases that will come if
  work sharing is adopted.

    Over 80% of Japanese companies prohibit or severely restrict their
  employees from holding second jobs to prevent in-house expertise from
  leaking outside the company. The present demand to relax this restriction
  allows labor to address dire employee needs of maintaining both employment
  and livelihood in this sector, which has been particularly hard-hit by
  the recession. Employers in the electrical, electronic, and information
  industry are reacting positively to the demand for the right to hold
  second jobs as a necessary trade-off for introducing work sharing in
  the industry.
                                             (Tokyo Shimbun, January)  
  
  
   -Reducing Staff Salaries to Maintain Employment-
  
    Tottori Prefecture has submitted a proposal to its labor union to
  cut the salaries of prefectural public employees by 5% over the next
  three years, beginning this April. The salary cuts will result in
  approximately 12 billion yen in extra revenue over the three years,
  which the prefecture will spend on employment creation measures.
  The extra revenue will be used to increase the number of prefectural
  workers in the child care and welfare sectors, which at present suffer
  from a shortage of qualified staff. The revenue will also be used to
  introduce work sharing support measures in the fiscal 2002 budget.
  According to the Ministry of Public Management, Home Affairs, Posts
  and Telecommunications, although many prefectures and municipalities
  are cutting the salaries of their public employees, Tottori's case
  is the first in which the resulting extra revenue has been specifically
  earmarked for employment creation.
                                             (Asahi Shimbun, January)


   Special Issue
  
   -Japan's Population to Begin Decreasing Sooner-
  
    The National Institute of Population and Social Security Research of
  the Ministry of Health, Labor and Welfare announced that Japan's
  population will begin decreasing much sooner and more sharply than
  calculated in previous estimates. Past estimates assumed that the
  number of children an average woman would have in her lifetime would
  stabilize at around 1.6, but the new estimate shows this figure to be
  around 1.4. Because fewer children are being born, Japan's total
  population will peak 127,741,000 persons in 2006, a year earlier than
  predicted in past estimates.

   Continued on;
   http://www.jil.go.jp/english/archives/emm/2001-2003/2002a/vol.12/japan'spopulation.html
  


   New Website open!!
  
   Labour Information in Japan
   
    Source of labor information in Japan for foreign companies provided by
  the Japan Institute of Labour(JIL)
 
   http://www.jil.go.jp/laborinfo-e.htm