The first wage cut for Japan Post employees and the labor union's moves

In June, the Central Labor Relations Commission presented to labor and management an arbitration ruling that wages of employees working for Japan Post (a public corporation), the National Printing Bureau and the Japan Mint (both independent administrative institutions), and the Forestry Agency (state-owned) be reduced by a margin of between 2.48 and 2.58% for FY2003. Although this is the second consecutive year of wage decreases, this is the first time ever to see an arbitration ruling accompanied by a revision in the salary table.

An arbitration ruling is a final decision made by the Arbitration Committee to resolve a labor dispute, and is binding on both labor and management.

Japan Post was launched after its management structure was switched from the Ministry of Posts and Telecommunications to a public corporation as part of the structural reforms and government reorganizations implemented in April. This will be the first wage decrease for postal workers throughout the history of the Ministry of Posts and Telecommunications. As a result, they will receive a salary cut that is the equivalent of 2.58% of the standard wage (or 7,447 yen on average). The wage cuts for the period from April 1 to the date the revised rate is applied will be deducted from their summer bonuses as adjustment measures.

Meanwhile, the Japan Postal Workers' Union, the largest labor union of postal service employees, with a membership of approximately 122,000, has decided on a policy of drastically reducing membership dues to alleviate the burden that union members will suffer as a result of the wage cut and to increase efficiency. The Union aims at reducing the current average monthly dues of approximately 7,400 yen by 25% to less than 6,000 yen.

At its regular convention held in June, the Union also decided to organize the approximately 100,000 individuals working part time at Japan Post and launch a Part-Timers' Union next year, initially with about 50,000 members.