The JIL Labor Flash Vol.34
Email Journal 17.01.2003
A New Year Message from the JIL chairman
Statistical Reports
Main Labor Economic Indicators
Current Topics
Labor unions narrowly maintain 20% unionization rate in 2002
Public Policies
Labour Standards Inspection Office orders companies to reimburse
unpaid overtime work exceeding 8.1 billion yen ...etc
News Clippings
Corporations plan to cut 110,000 regular employees ...etc
Special Issue
2003 Spring Joint Labor Negotiations get under way
A New Year Message from the JIL chairman
Dear friends,
The world economy did not improve during the last year. It even
worsened in some countries and regions. In world politics the
discrepancy and conflicts between different ideologies and creeds
interwoven with mundane interests have unfortunately increased.
Such general trends in economic and political backgrounds are working
negatively on the quality of working life everywhere in the world.
Following past years uneven distribution of wealth both in national
and international scale is still growing. Thus, this year again,
we recognize the importance of our efforts to promote health and
welfare of working life as well as decent working life of all people
on this earth.
In some countries there has emerged strong attempts to improve labor
laws and industrial relations systems. Some are successful. Some are
not. But they are mostly still too early to judge. Employment situations
are very serious in some countries. We observed some significant efforts
to implement effective policies to meet the tremendous challenges we
are facing now.
Our friend, Marco Biagi, professor of the University of Modena lost
his precious life last March as a result of cruel assault by terrorists
who were against his efforts to improve Italian labor law to meet the
needs of the flexible labor market. His sacrifice indicated to us the
importance of our efforts to improve labor policies in this contemporary
difficult time.
There are some signs of hope in some countries and regions where
employment as well as general economic situations are improving.
But we still realize the need for further development in studies and
in exchange of ideas and experiences from different parts of the world
in the field of labor.
Finally, JIL will be reorganized into a new body as a result of the
administrative reform introduced by the Government. From this October,
a new JIL will succeed our work concentrating more in policy research,
training and education in the field of labor. We ask for your kind
support and close working relationship with us in the new organization
after October.
Best wishes for good health, happiness and achievements during the
year of 2003.
Professor Dr. Tadashi Hanami, Chairman
Statistical Reports
-Main Labor Economic Indicators December 2002 -
http://www.jil.go.jp/estatis/eshuyo/200212/econtents.htm
Current Topics
-Labor unions narrowly maintain 20% unionization rate in 2002-
According to a basic survey on labor unions for 2002, the results
of which were released by the Ministry of Health, Labour and Welfare
at the end of 2002, there were 10,801,000 union members in Japan. The
estimated unionization rate was 20.2%, down 0.5 percentage points over
the previous year, renewing the worst-yet record for 27 consecutive
years. The survey was conducted in June 2002.
Continued on;
http://www.jil.go.jp/english/archives/emm/2001-2003/2003a/vol.34/unionizationrate.htm
Public Policies
-Labour Standards Inspection Office orders companies to reimburse
unpaid overtime work exceeding 8.1 billion yen-
Last December, the Ministry of Health, Labour and Welfare conducted
a special investigation on unpaid overtime work carried out by corporate
employees. Their findings revealed for the first time that the amount
which the Labour Standards Inspection Office throughout Japan ordered
various companies to pay as a corrective measure during the 18-month
period from April 2001 to September 2002 surpassed 8.1 billion yen.
A total of 613 companies received administrative guidance. By type
of industry, the largest number of companies (174) represented the
manufacturing sector, followed by commerce (152 companies), and financial
and advertising sectors (55 companies), in that order. Companies were
ordered to pay 13.28 million yen on average.
A total of 71,322 workers received corrective payments for unpaid
overtime work. The financial and advertising sectors had the largest
number of workers receiving corrective payments.
The Ministry intends to continue providing supervision and guidance,
focusing on improving working time management with the aim of ultimately
eliminating unpaid overtime work. It plans to deal rigorously with
malicious cases, imposing judicial punishments if necessary.
-Total number of temporary dispatched workers reaches 1.747 million-
According to a Report on Staffing Services for FY2001 that the Ministry
of Health, Labour and Welfare released in December 2002, the number of
temporary workers reached an all-time high of 1.747 million, up 26.1%
over the previous fiscal year.
It is predicted that, with the spread of deregulation, the number
may top 2 million by the end of FY2002.
There was a sharp increase in the number of people who, because of
their inability to find full-time jobs, registered their names with
temporary staffing agencies and worked whenever work was available.
There were 1.449 million such "registration-type temporary workers,"
30% more than the previous year. Similarly, there were 298,000
"temporary employees working on a regular basis", up 9.4% over
previous year.
News Clippings
-Corporations plan to cut 110,000 regular employees-
The Nihon Keizai Shimbun conducted an employment survey targeting
301 listed and unlisted companies (response rate: 81.4%), and found
that 69 companies were planning to cut approximately 111,000 regular
employees, or about 7.2% of their total workforce, by FY2005. One out
of three companies was considering introducing a voluntary and/or early
retirement program.
When asked if they felt that they had too many or too few domestic
regular employees (on a consolidated basis), half of the respondents
said that there were either too many (about 10%) or slightly too many
(about 40%) employees. Their total of about 50% surpassed the percentage
of those who felt that the size of the workforce was "just right"
(about 44%). None of the companies found that they had too few regular
employees. A feeling of being "overstaffed" was most prevalent in the
manufacturing sector (about 35%). When asked which age group they felt
there were too many of, about 82% of the companies cited "individuals
aged 50 and older."
Meanwhile, about 77% said that they had no plans to introduce a work
-sharing system. This high figure revealed their reluctance that, with
a strong sense of their domestic workforce being overstaffed, they did
not expect the new system to immediately help reduce their overall
personnel costs.
(Nihon Keizai Shimbun, December)
-Matsushita Electric Industrial shifts away from the lifelong employment
system and officially transfers 1,000 temporarily dispatched workers-
Matsushita Electric Industrial Co., Ltd. disclosed its plan to
officially transfer in April 2003 the approximately 1,000 employees
currently temporarily dispatched to Toshiba Matsushita Display Technology
Co., Ltd., a company it established following the consolidation of its
LCD business with Toshiba Corporation. This is the first time for
Matsushita to officially transfer its employees who were sent, originally
temporarily, to work at a company jointly invested in by another company.
Toshiba also plans to officially transfer its employees who were assigned
to work at this joint company.
Since its founding, Matsushita has stressed the importance of lifelong
employment. However, this all changed when the company introduced its
early retirement program in FY2001. The current measure, which is in
line with the company's early retirement program, symbolizes the dramatic
shift currently taking place in Japan's employment practices.
Matsushita introduced a similar transfer system in the summer of 2002.
About 200 employees aged 55 and older serving as corporate vehicle
chauffeurs, security service personnel, and others, were transferred
to Matsushita Business Service Co., Ltd., a group subsidiary company.
However, this was only a transfer within the same Matsushita Group.
The current, much more drastic, measure will most likely attract the
interest of the industrial community.
(Nikkan Kogyo Shimbun, December)
Special Issue
-2003 Spring Joint Labor Negotiations get under way-
A new year, 2003, has begun. However, what we see in Japan today
is the unemployment rate stuck at a high level, and a shockingly large
number of homeless people sheltering in urban parks (despite the popular
belief that Japan is an affluent country). Many workers are worried
that they, too, may lose their jobs one day. It is little wonder that,
with the start of a new year, everyone is hoping for a return to the
happier days of society and business filled with hope and vigor.
The spring joint labor negotiations got under way slowly amid widespread
concerns that a deflationary spiral may set in.
Continued on;
http://www.jil.go.jp/english/archives/emm/2001-2003/2003a/vol.34/shunto2003.html
