The JIL Labor Flash Vol.21
Email Journal 17.06.2002

   Statistical Reports
     Recent Statistical Survey Reports
   Current Topics
     Current status of board directors' performance evaluations and
     payment systems...etc
   Public Policies
     The number of workers recognized to have suffered karoshi reaches
     an all-time high...etc
   News Clippings
     Omron to provide training to pass down skills and expertise of
     veteran workers...etc
   Special Issue
     Japan Business Federation (Nippon Keidanren) inaugurated
   [What's New in our English website]

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Statistical Reports

   -Recent Statistical Survey Reports May 2002-
  
   Features
    Basic Survey on Employment Management for Women (2001)
    The Outlook on Social Security Benefit and contribution (2000 Oct.
    revised version)
    The Financial Effect of Latest Population Estimate on Employees'
    Pension, National Pension
  
     http://www.jil.go.jp/estatis/e2002-05.htm

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   Current Topics

   -Current status of board directors' performance evaluations and
    payment systems-

    A questionnaire survey conducted by the Japan Management Association
  revealed the current status of the performance evaluations and salaries
  of board directors working at Japanese companies. The survey targeted
  1,600 presidents of companies listed in Section 1 of the Tokyo Stock
  Exchange and other commercial entities. Answers were sent in from 127
  companies, giving a collection rate of 7.9%.
   
    Generally speaking, a board director's payment is comprised of a
  monthly salary, bonus, and retirement bonus. The questionnaire showed
  a growing tendency among the surveyed companies to begin offering
  monthly salaries and bonuses, based on performance in preference to
  the seniority system. As for retirement bonuses, however, 79.8% of
  the companies said that they had no plans to abolish them or reduce
  their amount. Only 4.2% of the respondents answered that they were
  considering abolishing bonuses, and 5.9%, that they were considering
  reducing the amount.
 
    As for the criteria for calculating board directors' retirement
  bonuses, the largest number of respondents--95.0%--cited "period of
  service as board director," followed by "the post of board director."
  Meanwhile, "achievements while serving as board director" was ranked
  a distant third, cited by 31.9% of the respondents. As for their plans
  to disclose the amount paid to individual board directors, 91.2% of
  the respondents replied that there was no such plan. (Note that
  multiple answers were accepted for these questions.)
   
    In other words, the survey revealed that most companies intend to
  retain the current retirement bonus system, which is based on the
  traditional seniority system; and that companies are not likely to
  change their existing practice of not disclosing the details of board
  directors' salary payments.
 
 
   -Japan Federation of Basic Industry Workers' Union (JBU) chosen as
    the name of the new industrial union-
   
    The Japan Federation of Steel Workers' Unions (136,300 members),
  the Japan Confederation of Shipbuilding and Engineering Workers' Unions
  (108,600 members), and the Japanese Federation of Industrial Materials
  and Energy Workers' Unions (19,400 members) held a joint preparatory
  meeting in May with the goal of launching a new integrated organization
  of industrial unions in September 2003, and decided on the above name
  for the new integrated organization. The name was chosen from among
  4,444 entries sent in from union members.
 
    Once integrated, the new organization will comprise approximately
  270,000 members. It will be the eighth largest of all industrial
  unions affiliated with Rengo (Japanese Trade Union Confederation),
  and the sixth largest of Rengo's private-sector industrial unions.
 
    The number of union members in the so-called mature industries is
  clearly on a decline. There is a concern that this will weaken the
  unions' financial foundation in the future. By integrating themselves
  into a single organization, the three federations hope to strengthen
  their industry-specific functions through economies of scale.

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   Public Policies

   -The number of workers recognized to have suffered karoshi reaches
    an all-time high-
  
    The Ministry of Health, Labour and Welfare announced in May that
  the number of deaths recognized to have been due to overwork ("karoshi")
  had reached a record high in fiscal 2001. This was the first disclosure
  of the number of recognized karoshi cases since the Ministry revised,
  in December 2001, the criteria for identifying such deaths. Under the
  revised criteria, the period for evaluating work status was extended
  from "one week prior to suffering symptoms such as buildup of fatigue"
  to six months.
 
    The number of claims submitted in fiscal 2001 for recognition of
  karoshi totaled 690, which was 73 more than in the previous fiscal
  year. Of these, 143 were recognized as karoshi cases, up 68% over
  the previous year. Of the 143 cases, 47, or 33%, were identified to
  have been work-related, meeting the newly added “excessive work
  carried out over a long period” criteria.
 
    In looking at major karoshi-recognized cases according to business
  category, 34 occurred in the manufacturing sector, 28 in the transport
  sector, and 23 in the wholesale and retail sector. By type of
  occupation, 30 were drivers, 26 were corporate managers, 25 were
  specialized engineers, 20 were skilled workers, and 18 were clerical
  workers.

    The Ministry also revealed the status of compensation for industrial
  injuries such as psychiatric disorders, etc. According to their
  report, of the 265 cases submitted requesting compensation, 70 were
  recognized to have suffered injuries due to work-related causes,
  approximately twice the number registered the previous year. Of these,
  31 cases (total number of relevant claims filed: 92) were suicides or
  attempted suicides.
 
    With the change in recognition criteria, the number of cases filing
  for recognition of karoshi or industrial injuries is expected to
  continue to increase.
 

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   News Clippings

   -Omron to provide training to pass down skills and expertise of
    veteran workers-
   
    Many companies are faced with the critical problem of how to maintain
  the skills and expertise of their veteran workers, and hand them down
  to younger employees. This is because numerous trained mechanics and
  workers have left the company due to organizational restructuring.
  Since companies have curbed the number of new recruits, moreover, they
  are suffering from a serious shortage of successors.
 
    Omron Corporation, a manufacturer of control devices, electronic
  settlement of accounts/public information systems, and health-related
  equipment, will open this fall a training center for fostering
  employees capable of supervising and heading manufacturing operations.
 
    Serving as lecturers will be skilled workers averaging over twenty
  years' experience and track record with Omron. Three different courses
  will be offered: an elementary course targeting new employees who will
  be working mainly in Japan; an intermediate course providing training
  programs corresponding to Grades 1 and 2 of the Proficiency Test; and
  an advanced course aiming at passing on advanced-level technologies.
  The center will also provide classes for studying facility investments,
  manufacturing process rearrangements and other techniques aimed at
  improving the rate of factory operations. Employees who meet the
  required level will be sent to work at manufacturing bases both in
  Japan and overseas.
                                          (Nihon Keizai Shimbun, June)
                                         
                                         
   -The number of female section managers in their 40s is only one-sixth
    that of their male counterparts-
  
    In May, the Ministry of Health, Labour and Welfare released the
  results of their basic survey of fiscal 2001 on the employment
  management for women. The survey targeted about 9,000 companies that
  consistently employ over 30 persons. Of these, 6,719 sent in their
  responses.
 
    The survey found that a major difference existed between men and
  women in terms of the period of their being promoted to managerial
  posts. While 20.6% of the men were promoted to assistant manager
  /section chief and other corresponding posts between the ages of
  30 and 39, the equivalent female percentage was only 5.9%. Moreover,
  while 24.5% of the men were promoted to managerial and other
  corresponding posts between the ages of 40 and 49, the equivalent
  female percentage was only 4.1%. Of those holding managerial posts,
  7.8% were women. In terms of their posts or occupational roles, women
  accounted for 11.9% of all section chiefs and other similar posts;
  5.5% of managers and other similar posts; and 3.2% of directors and
  other similar posts.
 
    In comparing the differences between men and women in terms of the
  status of standard university graduate workers first finding employment
  in a company and rising in rank and being promoted, it was revealed
  that, although 58.2% of the companies surveyed claimed to have no
  gender discrimination, 30.5% stated that men were promoted faster
  than women. As for the period in which this difference arises, the
  largest number of companies--32.9%--cited "from 6 years to 10 years
  after joining the company," followed by "up to 5 years after
  joining the company" which was cited by 24.3% of the companies
  surveyed. The largest reason, cited by 54.1% of the respondents,
  was that men and women were generally assigned to different type
  of jobs, indicating that the differences in jobs that men and women
  carry out are a major influence on the differences in the promotion
  status between men and women.
                                             (Shukan Rodo News, June)
                                                 

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   Special Issue

   -Japan Business Federation (Nippon Keidanren) inaugurated-
   
    Keidanren (the Federation of Economic Organizations) has long wielded
  tremendous influence on Japanese politics, and acts as the unofficial
  "Head Office" of the business community. On May 28, it officially
  merged with Nikkeiren (the Japan Federation of Employers' Associations),
  often referred to as the business community's labor affairs department,
  and a new organization--Nippon Keidanren--was launched. Let us study
  the background that led to this integration and the challenges the
  new organization faces.
 
  Continued on;
     http://www.jil.go.jp/english/archives/emm/2001-2003/2002a/vol.21/j.b.f.html
       

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   [What's New in our English website]
  
  --Labor Information in Japan--

  Guide to Human Resource Management
  -Comparative HRM between Japan and the US-
  
    This guide is designed for the Human Resources (HR) manager who wants
  to learn more about current Japanese HR management thinking and practices.
  You will recognize through this guide that Japanese companies often have
  their own unique approaches to key HR issues.

   http://www.jil.go.jp/english/archives/library/documents/hrm_us.pdf (PDF:189KB)