The JIL Labor Flash Vol.18
Email Journal 01.05.2002
Statistical Reports
Main Labor Economic Indicators
Current Topics
Labor unions stage large-scale mass demonstrations, demanding
changes in government policies...etc
Public Policies
Region-specific minimum wages to be represented in terms of
hourly wages only...etc
News Clippings
Number of people working at home to reach 3 million...etc
Special Issue
The fate of the Koizumi Administration
Statistical Reports
-Main Labor Economic Indicators April 2002-
http://www.jil.go.jp/estatis/eshuyo/200204/econtents.htm
Current Topics
-Labor unions stage large-scale mass demonstrations, demanding
changes in government policies-
The Japanese Trade Union Confederation (Rengo) designated one week
in early April as the "People's Total Action Week," and staged
nationwide demonstrations in which 7.5 million people took part.
At the same time, on April 10 and 11, it organized a mass demonstration
of 13,500 people in Tokyo, making it the largest-scale demonstration
since the founding of the Confederation. Not only Rengo members but also
members of NPO organizations such as the Dispatched Worker Network and
citizen's groups took part in the demonstration.
Demanding that the government take seriously the concerns of workers
who are made to suffer the adverse consequences of various reforms,
the demonstration called for the following actions to be taken:
(1) increase domestic demand to effect a business recovery, resolve
employment anxieties and stabilize income and living standards;
(2) halt the revision of the medical treatment system that will result
in increased charges to patients; (3) establish a democratic public
service personnel system and provide these officials with basic labor
rights; and (4) provide equal treatment to part-time workers.
The National Confederation of Trade Unions, or Zenroren, for its
part, organized workplace rallies during work hours, time-limited
strikes, and regional demonstrations on April 12. These activities
were held throughout Japan under the slogan, "Stop changing the medical
system for the worse, and protect our jobs, livelihoods, and standard
of living." The number of people taking part in these nationwide
activities totaled over 830,000, the largest since Zenroren was formed.
A Zenroren representative commented, "The Koizumi Administration is
turning its back on the desperate pleas of the workers and the Japanese
people. We've had just about enough; we cannot let the government
carry out major medical reforms which make insolvency equivalent to
a death sentence, or procrastinate the disposal of bad debts, an issue
of life or death to the regional economy."
Public Policies
-Region-specific minimum wages to be represented in terms of hourly
wages only-
Last year, the Central Minimum Wages Council decided that representation
of region-specific minimum wages should be changed from the current system,
which indicates both daily wages and hourly wages, to a system of
indicating hourly wages only. The Council recently demanded that this
change be completed, at the latest, by the time the system is revised
in fiscal year 2004.
The announcement shows the Council's approval of a report submitted
by the All-Member Council on the Hourly Wage Representation Issue.
The backdrop of this move is the increasing proportion of part-time
workers (in 1999, double the number in 1981), over 85% of whom are
paid by the hour, and the increasing number of workers who are adopting
more diverse work patterns.
Thus far, labor and management have disagreed on ways to calculate
hourly wages based on daily wages. While employers insisted on calculating
hourly wages as one-eighth daily wages, employees demanded that daily
wages be divided not by 8 hours, which is the legally stipulated work
time, but by 7 hours and 41 minutes, which is the average working hours
per day of full-time employees. In contrast, the public interest side
contended that, the current criteria should be maintained as starters
to change efficiently to a new system, In response, the Central Minimum
Wages Council explained that the specific amounts for various regions
should in principle incorporate the changes from the existing system
based on hourly wages, leaving specific details to be decided by various
regional minimum wage councils.
By the time the system will be revised this summer, over 70% of the
regions are expected to have shifted to the new system.
-Wage compensation offered to unemployed workers deciding to take up
temporary work-
The Ministry of Health, Labour and Welfare has begun studying the
possibility of creating, in April of next year, a system that facilitates
re-employment of currently unemployed workers as part-timers. Under the
planned system, unemployed workers who resume work on a part-time basis
will be given wages for a set period of time as compensation for loss
of income.
Continued on;
http://www.jil.go.jp/english/archives/emm/2001-2003/2002a/vol.18/wagecompensation.html
News Clippings
-Number of people working at home to reach 3 million-
According to the Japan Teleworking Association, the number of people
working at home, which was 810,000 in FY1996, totaled approximately
2.46 million in FY2000. It will reportedly increase to at least 3 million
by the end of FY2002, and, if things proceed at the current pace, it
should reach about 3.5 million, corresponding to 5% of the total worker
population. The number is expected to reach 4.45 million by 2005.
The Association explained that these numbers were obtained by conducting
a follow-up study of 5,000 companies in seven cities nationwide.
The Association also found that 20% of all companies listed on the
First Section of the Tokyo Stock Exchange, and 13% of all companies,
had adopted a partially home-based work system as of FY2000. From the
company's point of view, the system of having employees work at home
is beneficial since it can keep those employees who may eventually
quit the company for nursing care, child care, or other reasons.
This flexible work system will also make it possible for the company
to take fuller advantage of employees' talents and capabilities.
Cutting office expenses and transportation costs is another important
advantage. (Related article: JLF Vol.15)
(Nihon Keizai Shimbun, April)
-Outcomes of reverse proposals by the management of major electric
companies following the spring labor offensive negotiations-
(1) Major general electric machinery and equipment companies drew
extensive media attention when their management proposed emergency
measures, such as freezing annual wage increases and reducing wages,
after the companies' labor and management had agreed to maintain the
existing wage system at this year's spring labor offensive (see JLF Vol.16).
The contents of the labor-management agreement were as follows:
(Shukan Rodo News, April)
Continued on;
http://www.jil.go.jp/english/archives/emm/2001-2003/2002a/vol.18/shunto_revers.html
Special Issue
-The fate of the Koizumi Administration-
Exactly one year has passed since Junichiro Koizumi took office on
April 26, 2001. The JIL Labor Flash has been covering the progress and
activities of his Administration. As can be seen by this issue's Current
Topics, describing the moves of Rengo, the Japanese people are becoming
increasingly irritated by, and unhappy with, the Koizumi Administration.
Their reactions stem from the current state of affairs, with structural
reforms still not producing any tangible results, but the economy,
business, and employment deteriorating further.
Recent surveys conducted by various newspapers show about the same
proportion of people--about 40% each--supporting and not supporting
the Cabinet. The Koizumi Administration set sail with a good deal of
fanfare, supported by a record high approval rating, declaring
determinedly that it would carry out structural reforms. However,
a series of events brought down their approval rating: the dismissal
of Foreign Minister Makiko Tanaka, who was very popular, especially
among women, because of the friction she had caused with the Foreign
Ministry; the decision to allow Minister of Agriculture, Forestry
and Fisheries Takebe to remain in office despite being called to step
down to take responsibility for the turmoil related to the Mad Cow
Disease issue; and allowing Muneo Suzuki to decide for himself
whether or not to resign as a Diet member (Suzuki was disclosed to
have unfairly pressured the Foreign Ministry in connection with
diplomacy with Russia).
Achieving financial reconstruction and economic recovery at the
same time are obviously daunting tasks at which almost no past
administrations have managed to succeed. However, the Koizumi
Administration cannot persuade the Japanese people that it is doing
a good job unless it can show them, in concrete terms, the beneficial
effects that will ensue after structural reforms are carried out.
The sooner they do this, the better. If the people reach a point where
they cannot wait any longer, they are likely to abandon the Koizumi
Administration as "all talk and no action" as having unilaterally
forced the pain of reform on the general public but to no beneficial
effect. If this happens, the Administration may be doomed. This is
a critical juncture for Prime Minister Koizumi, and all attention is
focused on whether he can raise his approval rating again or not.
