The JIL Labor Flash Vol.37
Email Journal 03.03.2003
Statistical Reports
Recent Statistical Survey Reports
Current Topics
The starting salaries of workers hired in mid-career ...etc
Public Policies
Outline of a proposal to revise three bills drawn up and submitted
to the Labor Policy Council
News Clippings
Performance of part-time workers not evaluated ...etc
Special Issue
More and more companies reexamine their annual wage increase system
Statistical Reports
-Recent Statistical Survey Reports January 2003-
http://www.jil.go.jp/estatis/esaikin/2003/e2003-01.htm
Features
Report on Private Job Introduction Business (2001)
Basic Survey on Wage Structure by Prefectures
(Preliminary Report, FY 2002)
Report on Employment Service (December and 2002)
Current Topics
-The starting salaries of workers hired in mid-career-
In February, the Tokyo Labor Bureau announced the findings of their
survey on the starting salaries of 12,089 people who found jobs through
the public employment service offices in the Tokyo area. The survey
was conducted from August to September 2002, after the respondents
had been hired by their respective companies.
The survey revealed that the respondents received 200,000 yen on
average, the same as the previous year. Starting salary by age was
200,000 yen for respondents aged 25 to 34 (down 2.4% over the previous
year); 218,900 yen for those aged 35 to 44 (down 4.8% over the previous
year); 218,300 yen for those aged 44 to 54 (down 3.2% over the previous
year); and 200,000 yen for those aged 55 to 59 (the same as the previous
year).
By occupation, managers of corporations and organizations received
the highest salary of 380,000 yen (down 5.0% over the previous year),
followed by mechanical and construction engineers (300,000 yen; the
same amount as the previous year).
By years of experience, if the average salary of those with work
experience of less than one year was indexed at 100, the index for
people with 1 to 4 years' work experience was 108.1 (up 2.8% over the
previous year), while those with over 5 years' experience was 118.9
(down 2.2% over the previous year), indicating that starting salaries
tended to increase in proportion to years of experience.
-Nippon Keidanren executives anticipate a 5.8% unemployment rate at
the end of FY03-
From December 2002 to January 2003, the Japan Business Federation,
or Nippon Keidanren, conducted a survey targeting 233 Nippon Keidanren
managing directors, chairman, and vice-chairmen. Called "The eighth
questionnaire survey on economic management and business situations,"
the survey drew responses from 144 people (response rate: 62%).
The survey revealed that the largest number of respondents predicted
the actual unemployment rate to be 5.5% at the end of FY02 and 5.8% at
the end of FY03.
Meanwhile, many respondents anticipated the real (inflation-adjusted)
economic growth rates to be + 0.7% at the end of FY02 and + 0.3% at
the end of FY03, lower than the Government's economic outlook of +0.9%
for FY02 and +0.6% for FY03. For reference purposes, the average growth
rates predicted by 32 private-sector survey institutions were +0.9% for
FY02 and +0.2% for FY03.
Public Policies
-Outline of a proposal to revise three bills drawn up and submitted
to the Labor Policy Council-
Minister of Health, Labour and Welfare Sakaguchi drew up an outline
of a proposal to revise three bills suggested at a meeting of the
Labor Policy Council subcommittee held at the end of last year, and
submitted it to the Council.
The three bills to which revisions are proposed are the Labor
Standards Law, the Employment Security Law, and the Worker Dispatching
Law. Items proposed to be revised are as follows: (1) concerning the
Labor Standards Law, extension of fixed-term employment contracts,
introduction of the discretionary labor system and simplification of
relevant process, as well as legalization of dismissal rules; (2)
concerning the Employment Security Law, approval of local municipalities
providing free job referral services; and (3) concerning the Worker
Dispatching Law, allowing the dispatch of workers to the manufacturing
sector, and extension of the dispatch period.
Regarding the legalization of dismissal rules, it was stipulated that
"if a dismissal clearly lacks objective and logical reasons, and is
acknowledged, based on socially accepted norms, to be inappropriate,
such dismissal shall be regarded as an abuse of such rights, and shall
be disallowed." However, establishing a new system that enables a
company, in the event that the court rules a dismissal as invalid,
to dismiss an employee while adopting a monetary settlement (in
accordance with the requests of both management and labor) instead of
having the employee return to work, was not incorporated in the said
outline, since labor and management failed to reach an agreement
regarding amount of money, billing method, and other matters.
As for the Worker Dispatching Law, it was decided that the duration
of general worker dispatches would be extended from 1 to 3 years.
Abolition of restricting the work period for 26 specialized jobs,
which conventionally had a ceiling of 3 years, was shelved.
Concerning expansion of target business operations, particularly
medical-related operations to which temporary workers were under a
blanket prohibition from being dispatched, a proposal for a government
decree was submitted for deliberation on personnel dispatches to
medical operations at social welfare facilities, excluding hospitals
and medical clinics.
After receiving a report from the Council, the Ministry of Health,
Labour and Welfare will draw up a bill in the hope of obtaining a
Cabinet decision in early March.
(Reference: JLF Vol.31)
News Clippings
-Performance of part-time workers not evaluated-
A survey conducted by the AiDEM Insitute of Personnel and Job, a
publisher of recruitment magazines, revealed that close to half of
all part-time workers had seen no wage differences based on performance.
The survey was conducted last October via the Internet, with 2,304
women and 514 men sending in their replies.
Sixty-five percent of the respondents found their current jobs
interesting, and 60% thought that their jobs allowed them to demonstrate
their skills and abilities. On the other hand, 45% of the respondents
found no wage differences based on their work performance, but 74%
wanted to see such differences. Moreover, of those working at the
same office for more than one year, 42% received exactly the same
hourly pay as when they were first employed. The findings revealed
the fact that even if an employee had motivation, their employers
were incapable of evaluating it properly.
(Nihon Keizai Shimbun, February)
-Matsushita Electric increases mid-career hiring by 50%; new graduates
to be hired by each group-
Matsushita Electric Industrial will increase mid-career hiring of
domestic employees in FY2003 to 300, which is 50% more than this
fiscal year. The company will proactively hire people with extensive
experience and skills in such fields as information technology and
finance, to reinvigorate their in-house setup. Of all the employees
the company plans to hire throughout the year, including new graduates,
40% are expected to be in mid-career.
This fiscal year, Matsushita hired about 200 people through a
recruitment organization set up in Tokyo last April. In October 2003,
a recruitment center that oversees the employment strategy for the
entire group will also be set up at their Osaka Head Office. Next
fiscal year, the company will step up mid-career hiring in Tokyo
and Osaka. Starting in FY2004, business companies in each group
will hire new graduates independently. At the same time, a system
allowing employees to request transfers to departments/divisions of
their choice will be introduced throughout the Group.
(Nihon Keizai Shimbun, February)
Special Issue
-More and more companies reexamine their annual wage increase system-
In past issues, we predicted that this year's spring joint labor
negotiations would see many labor unions dropping their demands for
basic wage increases. We also discussed the possibility that management
would think about reexamining the annual wage increase system that has
thus far been considered a "sanctuary." This is fast translating into
reality.
It appears that a situation is emerging that may compel Japanese
business to transform its longstanding employment system premised on
the seniority wage structure and the lifetime employment system.
Continued on;
http://www.jil.go.jp/english/archives/emm/2001-2003/2003a/vol.37/annualwage.html
