The JIL Labor Flash Vol.33
Email Journal 16.12.2002
Statistical Reports
Recent Statistical Survey Reports
Current Topics
Rengo (the Japanese Trade Union Confederation) decides on its
policies and strategies for the 2003 Spring Joint Labor Negotiations
...etc
Public Policies
The ILO cautions that restricting public service personnel's right
to strike violates two ILO conventions
News Clippings
Kinki Nippon Tourist to cut full-time employees by 20%; most
employees to work on a contract basis ...etc
Special Issue
Looking back on the past year
Statistical Reports
-Recent Statistical Survey Reports November 2002-
Features
Survey on Internship at Universities (2001)
Survey on Preliminary Job Offer for New Graduates in Mar., 2003
(Senior and Junior High School) (End of September)
http://www.jil.go.jp/estatis/e2002-11.htm
-TANKAN-
Short-term Economic Survey of Entreprises in Japan
-Friday December 13, released by the Bank of Japan
http://www.boj.or.jp/en/siryo/stat/tk0212.htm
Current Topics
-Rengo (the Japanese Trade Union Confederation) decides on its
policies and strategies for the 2003 Spring Joint Labor Negotiations-
For the first time since its organization, Rengo has decided against
setting a unified demand standard for wage hikes at next year's spring
joint labor negotiations. Instead, the focus of its struggle for higher
wages will be shifted to a campaign to raise the wage levels of employees
working in small- to medium-scale enterprises and local businesses, and
of union members and part-time workers.
As a part of its new strategy, Rengo has established "Minimum Tasks"
which all labor unions are to make concerted efforts to tackle. These
include (1) securing the wage curve (corresponding to the annual pay
raise amount), (2) establishing an agreement on intra-firm minimum
wages, targeting all employees; and (3) establishing an agreement on
management of work hours with the aim of eliminating unpaid overtime
work.
To secure and maintain the wage curve, all unions will be required
to make all-out efforts to meet the two goals that have been established:
the minimum goals to be achieved, and the levels they must aim at
gaining. Wage hike demands (pay raises) will be determined according
to the policies of each industrial union.
As for raising part-time workers' wage levels, Rengo will, like
last year, aim at raising the unit price of hourly pay by over 10 yen.
It will also work to conclude and revise intra-firm minimum wage
agreements, showing hourly amounts. Rengo has established 900 yen
as the demanded level of intra-firm minimum wage, with 790 yen as
the minimum target.
The decisions made on this occasion constitute Rengo's new strategy
and tactics that reflect the fact that the conventional campaign style
--in which a unified demand standard is established and a wage hike
campaign is subsequently carried out--has virtually collapsed this year.
-October unemployment rate reaches 5.5%, comparable to the worst-ever
rate recorded last year-
According to findings of a labor force survey released in November
by the Ministry of Public Management, Home Affairs, and Posts and
Telecommunications, the totally-unemployment rate in November rose to
5.5% (seasonally adjusted value). This was 0.15 percentage points
higher than the previous month and comparable to the worst-ever rate,
posted last December. The male unemployment rate was a record-high 5.9%.
The number of totally-unemployed people was 3.62 million, which was
100,000 more than in the same month last year, representing an increase
for 19 consecutive months. The number of employed people was 63.55
million, down 500,000 from the same month last year.
Meanwhile, the effective job-opening-to-application ratio was 0.56
(seasonally adjusted value), up 0.01 points over previous month.
Public Policies
-The ILO cautions that restricting public service personnel's right
to strike violates two ILO conventions-
For the first time, the International Labour Organization (ILO) has
officially commented on Japan's current system that restricts the basic
labor rights of public service personnel, clearly stating that the
relevant laws and practices are violating ILO conventions No. 87
(freedom of association and protection of the right to organize) and
98 (the right to organize and the right of collective bargaining),
respectively. It adopted a recommendation strongly urging the Japanese
Government to revise the laws in compliance with the ILO conventions
with the premise that the Government conduct thorough, frank, and
meaningful discussions/consultations with all relevant parties.
Continued on;
http://www.jil.go.jp/english/archives/emm/2001-2003/2002b/vol.33/ilocautions.html
News Clippings
-Kinki Nippon Tourist to cut full-time employees by 20%; most
employees to work on a contract basis-
Kinki Nippon Tourist Co., Ltd., one of Japan's leading travel
agencies, announced a management structural reform plan covering the
period up to 2005. Under the plan, the company will focus on reducing
its workforce by about 1,000 employees, or 21% of its full-time workers.
It will raise the proportion of contract workers in total employment
from the current 20% to 34%, and reduce personnel costs by 3 billion
yen annually.
Full-time employees will be reduced through mandatory retirement,
voluntary retirement, limiting the number of new recruits, and other
means. They will be assigned in a concentrated manner to departments
that the company hopes to bolster, such as group tours and membership
travel. Meanwhile, about 700 more contract workers will be hired.
These workers will account for 80% of all personnel working in the
in-store sales department. The total number of employees will be
5,700, which is 5% fewer than the current workforce. By 2007, the
company plans to raise the proportion of contract workers to 50%.
(Yomiuri Shimbun, November)
-Winter bonuses cut by 5.16%: biggest rate of fall since 1975-
The Nihon Keizai Shimbun has conducted a survey on this year's
bonus payments. According to its interim compilation, the average
amount paid in all industries (weighted average) was 727,203 yen per
employee, down 5.16% from the previous winter's amount and the first
drop in three years. Many companies are faced with poor business
performance because of deflation and the deceleration of the U.S.
economy, and there is a growing tendency for these companies, primarily
in the manufacturing sector, to make attempts to limit personnel costs.
The rate of decreases in winter bonuses seen in all the industries
was the highest since the survey began in 1975, surpassing the 3.77%
posted in 1999. A growing number of companies now determine the bonus
amount by linking it to employee performance. The sharp overall decline
in bonuses was a result of companies suffering declines in business
performance in 2001.
1US$≒\120.5 (December 2002)
(Nihon Keizai Shimbun, November)
Special Issue
-Looking back on the past year-
The year 2002 is fast drawing to a close. In our articles last
December, we wrote that Japan's unemployment rate had recorded an all
-time high, and that major corporations had announced large-scale
employment curtailment plans.
Let us, then, look back on this past year. The business recession
still lingers. At present, the unemployment rate shows a figure
corresponding to the all-time high recorded a year earlier. The situation
has gone from bad to worse, with salaries and bonuses being cut, more
middle aged and older individuals committing suicide, and young people
having difficulties finding jobs.
Continued on;
http://www.jil.go.jp/english/archives/emm/2001-2003/2002b/vol.33/summary2002.html
This is the last issue of the JIL Labor Flash this year. Our next
issue will be issued in mid-January 2003. We look forward to communicating
with you then.
