The JIL Labor Flash Vol.16
Email Journal 01.04.2002
Statistical Reports
Main Labor Economic Indicators
Current Topics
Record-breaking 2,119 labor lawsuits filed in 2001...etc
Public Policies
Work-sharing becoming more common in local government
News Clippings
Small to medium enterprises not introducing childcare assistance
programs fast enough...etc
Special Issue
Summary: Spring labor offensive of 2002 sees dramatic changes
Statistical Reports
-Main Labor Economic Indicators March 2002-
http://www.jil.go.jp/estatis/eshuyo/200203/econtents.htm
-TANKAN-
Short-term Economic Survey of Enterprises in Japan
-Monday April 1, released by the Bank of Japan
http://www.boj.or.jp/en/siryo/stat/tk0203.htm
Current Topics
-Record-breaking 2,119 labor lawsuits filed in 2001-
According to a preliminary report by the Supreme Court, a total of
2,119 labor lawsuits were filed in district courts throughout the nation
last year, an all-time high.
In 1991, after the collapse of the bubble economy, about 660 labor
lawsuits were filed. The number doubled in 1993 and topped 2,000 in
the year 2000. Of the suits filed last year, 1,307 cases were related
to wages, dismissals and retirement benefits, reflecting the effects
of the lingering recession. The number was almost three times that seen
ten years ago, and is continuing to grow.
There is also a marked increase in "individual conflicts" whereby
the plaintiffs seek wage payments individually, instead of via
"class action" instituted by labor unions. Another conspicuous change
is the increase in the number of cases handled by summary courts
convened to handle cases involving demands for payments of 300,000 yen
or less. Of the 2,251 lawsuits demanding small-amount payments which
the Tokyo Summary Court had handled last year, 308 were related to
labor issues.
-Trends in corporate hiring of new graduates for April 2002 and in
securing personnel-
In January of this year, the Tokyo Chamber of Commerce and Industry
conducted a survey of trends in the hiring of new graduates, etc.
The survey targeted member companies centering on small to medium-size
companies. Answers were sent in from 917 companies, or 26.0%. The survey
found that about 70% of the respondents planned to hire new graduates
in April, while the remaining 30.2% had no plans to hire them.
Many companies were planning to hire more people than last year,
indicating that the recruitment situation has taken a somewhat favorable
turn. However, of the companies that planned to hire new graduates,
only 64% were able to hire new graduates as planned, while 29% were
able to hire new graduates, although not exactly as planned, and 6%
could not hire anyone at all.
The main reason why companies failed to secure new employees as
planned was "lack of competent personnel," cited by close to half of
the respondents. The most frequently cited problem related to employee
recruitment was "too few applicants," while many companies cited
"decline in students' awareness of what work entails," "lack of
motivation," and "decline in academic skills."
In hiring employees, companies looked for "vigor and spontaneity"
(cited by 81% of the respondents), followed by "courtesy and a clear
understanding of social conventions1" (66%). Only 25% cited "profess
-ional knowledge."
These days, many companies opt not to hire new graduates if they
cannot find competent personnel, and instead hire people in mid-career
who already have the required experience and skills, and thus need
no special newcomer training.
Public Policies
-Work-sharing becoming more common in local government-
No signs of improvement are seen in employment levels. To improve
the situation, a growing number of local governments of regions with
the toughest employment conditions-such as Hokkaido and the Tohoku
regions-have introduced, or have announced plans to introduce, work
-sharing setups.
The most common practice is to reduce staff members' overtime work,
and to parcel the resulting work out to temporary staff members.
Some municipalities go a step further. The Tottori Prefectural Government,
for example, cut executives' wages by 7% and staff members' pay by 5%,
and allotted 1 billion yen to the employment of 150 more teachers in
a bid to reduce the size of elementary school classes to 30 students.
Of Japan's 47 prefectural governments, about one-third have appropriated
budgets for work sharing so that the system can be implemented this April.
Similar moves are expanding rapidly in cities, towns, and village
administrations.
Some people question the effectiveness of this system, citing
municipalities that are reluctant to replace staff members because of
the nature of their work, and the restrictions imposed on the duration
of recruitment of temporary staff members (a maximum of one year).
Still, more than half of the municipalities are showing a positive
interest in introducing the work-sharing system in the future.
Needless to say, the backdrop behind local government moves to
introduce the work-sharing system, even before private-sector companies,
is the relentless hollowing-out of industry, with local factories
relocating to other countries, their inability to develop and promote
new industries fast enough, and other serious problems.
News Clippings
-Small to medium enterprises not introducing childcare assistance
programs fast enough-
The Foundation for Children's Future conducted a survey from August
to September of last year targeting 3,200 small- to medium-scale
enterprises with fewer than 300 employees. The Foundation received
answers from 25% of the companies and 21% of the employees surveyed.
The findings reveal a large gap between the awareness of companies and
that of employees with respect to childcare support programs.
Eighty percent of the companies responded that they "had not done
anything special" to establish conditions to make it possible for
their employees to both work and raise children, while 80% of the
employees felt that the creation of such an environment was necessary.
The survey also showed that 80% of the men and over half of the women
wanted to work and raise children at the same time, placing importance
on both "work motivation/promotion and childcare."
As specific childcare support programs, many companies cited family
allowances (71%), and monetary gifts on traditionally children-centered
occasions, such as birthday and festivls, as well as help with medical
payments (43%). Meanwhile, 48% of the employees felt that a family
allowance was necessary. The employees strongly demanded leave of
absence to care for sick children (43%), flextime systems (39%), and
that company holidays be held during children's school holidays such
as summer recess (26%).
(Yomiuri Shimbun, March)
-NEC's in-house disclosure of managerial job descriptions and
remuneration-
NEC plans to introduce a new personnel system in April of this year.
The company will disclose, via an in-house network, job descriptions
and the scope of responsibilities of approximately 12,000 managerial
staff members ranked section manager and above.
To be made public is the 'Definition of Roles' that will serve as
the criteria for performance evaluations of various posts. Under the
new personnel structure, managers' roles will be classified into seven
"role grades" depending on the level and scale of work they are
expected to perform. The managers receive their monthly salaries
according to their grades. Managers given the same grades receive
the same monthly salary even if they belong to different departments
or have different roles to play. Under this system, it is possible to
know how much individual managers are being paid just by looking up
their Definition of Roles. NEC's aim in implementing this unique system
is to make employees' responsibilities and their accompanying remuneration
crystal clear for everyone to see, thereby increasing the managers'
motivation and individual sense of responsibility.
(Nihon Keizai Shimbun, March)
-Companies conducting entrance exams over the Internet-
Mitsubishi Estate Co., Ltd., a major real estate company, has decided
to use the Internet to conduct preliminary entrance examinations
targeting new graduates. Until last year, the company offered
preliminary examinations in the form of written tests.
By simply connecting their PCs to the Internet, applicants anywhere
can take the test at any time during the test period. Submission of
"Entry Sheets" that convey a student's interest in joining a particular
company, as well as companies' recruitment information, are increasingly
being provided over the Internet. However, Mitsubishi Estate has decided
to go one step further and conduct the preliminary tests themselves over
the Internet. A spokesman for the company's Personnel and Planning
Department explained that the system benefits both sides, since an
even greater number of students can take the test, while the company
can save examination hall rental fees and test grading costs.
Applicants will be given their own passwords, and use them to access
the test. The preliminary examination will comprise aptitude tests
whose scores do not directly determine whether the applicant will or
will not be recruited, including "self PR" essays describing their
strengths, simple math problems, and reading comprehension tests of
Japanese texts. To prevent applicants from cheating or using stand-ins,
the company has drawn up 170,000 different test combinations. The results
of the exam will also be provided via the Internet. About 2,000 students
are expected to take the exam from late March to early April, with about
half proceeding to take the interview. Ultimately, the company plans to
hire about twenty to forty people.
(Asahi Shimbun, March)
Special Issue
-Summary: Spring labor offensive of 2002 sees dramatic changes-
The Shunto, or spring labor offensive, began in 1952. It has been
making its mark in history for over half a century.
However, this year's shunto will be long remembered and talked about
as extremely unique and epoch-making.
The employment situation this year was dismal: a lingering business
recession and fears of entering a deflationary spiral, a first for Japan,
along with conspicuous hollowing-out of the manufacturing sector and
record unemployment rates. These were compounded by uncertainties about
whether the current Administration can really carry out administrative
and financial reforms and stimulate an economic recovery at the same time.
As a result, anxiety was also spreading rapidly among the public.
Continued on;
http://www.jil.go.jp/english/archives/emm/2001-2003/2002a/vol.16/summary_shunto2002.html
