The JIL Labor Flash Vol.50
Email Journal 16.09.2003

   Statistical Reports
     Recent Statistical Survey Reports
   Current Topics
     Status of employees' mental health deteriorating
   Public Policies
     Ministry of Health, Labour and Welfare's FY2004 budget requests
     and priority policies
   News Clippings
     Practice of unpaid overtime work spreading to part-time and
     temporary workers  ...etc
   Special Issue
     Results of the 2003 spring joint labor negotiations and corporate
     moves pertaining to periodic pay raises


   Statistical Reports

   -Recent Statistical Survey Reports August 2003-
  
   Features
    Basic Survey on Schools (FY2003)
    Report on Employment Service (July)
    Opinion Poll on Life of People
   
    http://www.jil.go.jp/estatis/esaikin/2003/e2003-08.htm
 


   Current Topics

   -Status of employees' mental health deteriorating-
  
    A FY2003 fact-finding survey conducted by the Japan Productivity
  Center for Socio-Economic Development targeting labor unions produced
  findings that were more serious than those of surveys conducted last
  year targeting corporations.
 
    The survey, targeting 873 labor unions randomly selected from local
  unions throughout Japan, took the form of a questionnaire. Responses
  were sent in from 241 unions, or 27.6%.
 
    The survey found that 67.2% of the labor unions felt that the number
  of members suffering from mental diseases had increased over the past
  three years (versus 48.9% of the respondents in last year's corporate
  survey who were asked the same question). Of the respondents belonging
  to labor unions with 3,000 or more members, moreover, the rate was a
  shockingly high 81.5%. A total of 63.5% of the labor unions had members
  unable to work for one month or more due to depression and other mental
  illnesses. Of these labor unions, 140 or 90.9% predicted that such
  members would continue to increase.
 
  Continued on;
     http://www.jil.go.jp/english/archives/emm/2001-2003/2003b/vol.50/jpc_mh2003.html
 


   Public Policies

   -Ministry of Health, Labour and Welfare's FY2004 budget requests and
    priority policies-
  
    At the end of August, the Ministry of Health, Labour and Welfare
  compiled a draft of their budget requests for next fiscal year.
  Their budgets focused on (1) pension system reform, for which a bill
  is planned to be submitted to the next ordinary Diet session,
  (2) programs to support the fostering of the next generation of people
  aimed at putting a stop to the declining birth rate, and (3) employment
  measures targeting long-term unemployed workers and youths.
   
    The Ministry requested a general account budget of 20 trillion 215.4
  billion yen, which was 836.7 billion yen more than the previous fiscal
  year, and a special account budget of 69 trillion 556.5 billion yen,
  which was 317.1 billion yen less than the previous year.

    Some of the projects planned to be launched include job placement
  support services for long-term unemployed workers that are commissioned
  to private-sector enterprises, and the Japanese-style dual system of
  providing education and training to youths in conjunction with practical
  training in corporations.

    The Ministry budgeted a total of 59.6 billion yen for programs to
  support and promote early re-employment. An additional 70.9 billion yen
  was allocated to implement personalized, detailed employment support
  services catering to the unique circumstances and characteristics of
  unemployed individuals. The key to do this is to boost employment
  support targeting long-term unemployed workers; and the Ministry has
  decided to spend 1.2 billion yen to embark, full-scale, on support
  programs that utilize private-sector enterprises.

    A total of 33 billion yen was incorporated into programs to promote
  the employment and re-employment of young individuals. The Ministry
  allocated 8.9 billion yen for the dual system, anticipating launching
  the program for about 40,000 such people.

    As one of the new programs, the Ministry announced it planned to
  help employees on leave of absence from work due to depression and
  other mental illnesses to return to work. The program will provide
  individuals with training to improve their interpersonal skills or
  get re-acclimatize themselves to the workplace, and also to provide
  advice to corporations. A total budget of 39 million yen was allocated
  for this program. Activities are expected to continue after the next
  fiscal year, to further boost the content of the program.
 
    1US$≒\117 (September 2003)
 


   News Clippings

   -Practice of unpaid overtime work spreading to part-time and temporary
    workers -
   
    The practice of unpaid overtime work is spreading even to part-time
  and temporary workers. The backdrop to this practice, which traditionally
  was thought to involve only regular, full-time employees, is the increase
  in work volume of non-regular employees as a result of growing layoffs
  and other corporate restructuring measures. No clear-cut regulations
  on overtime work are in place, revealing the vulnerable position of
  these non-regular workers who, for fear of losing their jobs, have
  no choice but to comply.
   
    In February of this year, the Japanese Trade Union Confederation,
  or Rengo, implemented nationwide telephone consultation services on
  work-related problems, and received numerous questions pertaining to
  unpaid overtime work. According to Rengo's Director of Labor Conditions,
  about 10% of all consultation requests were sent in by non-regular
  workers, with the number of such calls having increased sharply over
  the past year or two.

    One of the contributing factors to the spread of unpaid overtime
  work is the growing number of non-regular employees being appointed
  to higher posts, such as "part-time store managers." The Young Contingent
  Workers' Union, to which many non-regular employees, including job-hopping
  part-time workers, are affiliated, declares that a growing number of
  part-time workers are assigned actual management tasks, such as
  becoming "shift leaders," and that these individuals are compelled to
  work overtime when there are staff shortages. The Union adds that the
  more responsibilities an individual is given, the more extra work he
  or she must take up, and therefore the more stressed he or she becomes.
                                             (Nihon Keizai Shimbun, August)

   -Matsushita Electric Industrial employees' resolute course of action-
  

    Matsushita Electric Industrial recently decided to close down its
  two motor factories in Takefu City, Fukui Prefecture. In response,
  the employees took concerted action to protect their jobs. What they
  did resembles an Employee Buy-out, or EBO: they pooled their money,
  set up a manufacturing company, and carried on their operations.
   
    The two new companies to be established in October with funds
  invested by the employees will have Matsushita lending the factories
  and facilities, and even providing raw materials and other resources.
  In other words, Matsushita and the new companies will enter into a
  production consignment relationship, with the former paying the
  processing fees to the companies funded by their former employees.
 
    Viewed from the Matsushita side, this arrangement is like killing
  two birds with one stone. They can evade the criticism that they are
  driving their employees out of work while discontinuing domestic
  production, and can also fulfill their responsibility to supply
  products to their clients.

    The restructuring by Matsushita and other Japanese companies of their
  domestic production bases as a result of their shift to China-based
  production is about to enter a new phase.
                                            (Nikkei Sangyo Shimbun, August)

   -Offices physically transforming themselves and saving space-
  
    A growing number of offices are recently embracing a less structured
  layout by not fixing the positions of the desks and chairs where the
  employees work. This "free address" system is not merely a rearrangement
  of office space: behind it is the revolution in employees' styles of
  work and the organizational structure.
   
    NEC Soft, Ltd. began introducing this system in 2000 for a part of
  its System Engineering Department. The company reduced its office
  space by a third and cut back on their rent. The company was able
  to save about 60 million yen a year thanks to this "free address"
  system.

    JR Bus Kanto, meanwhile, introduced the free address system and
  eliminated the president's room, the board directors' rooms, and
  department-specific rooms. The company chairman emphasizes that their
  goal was to move away from what was an outdated system and become an
  organization enabling free interchanges. He noted that, by having the
  president share the same desk with his employees, he can make decisions
  much more quickly than before.
                                                    (Asahi Shimbun, August)


   Special Issue

   -Results of the 2003 spring joint labor negotiations and corporate
    moves pertaining to periodic pay raises-
 
    According to the status of major private companies' wage hike demands
  and settlement results of 2003 spring joint labor negotiations, released
  at the end of August by the Ministry of Health, Labour and Welfare,
  the wage hike rate for this year's spring labor negotiations was 1.63%.
  This was 0.03 percentage points lower than last year's record-low level,
  and was the lowest rate ever since data compilation began in 1965.
   
  Continued on;
     http://www.jil.go.jp/english/archives/emm/2001-2003/2003b/vol.50/results_sjln2003.html
   


 
   To our Readers: “The JIL Labor Flash” to be issued by a new publisher
   and under a new name
  
    On October 1, 2003, the Japan Institute of Labour, the publisher of
  the JIL Labor Flash, will be reorganized into the Japan Institute for
  Labour Policy and Training, an independent administrative institution.
 
    In conjunction with this move, "The JIL Labor Flash" will change its
  name to "The Japan Labor Flash." The new issue will make a fresh new
  start, beginning with Vol. 1.

    The new Labor Flash will describe the activities and research programs
  of the new organization as well as its accomplishments, and deliver all
  the latest information on Japan that will no doubt interest you.
 
    We will continue to deliver the new Labor Flash to our current Readers.