The Japan Labor Flash
No.21
Email Journal August 16, 2004
JILPT Information
WORKSHOP ON INTERNATIONAL MIGRATION AND LABOUR MARKET IN ASIA
Statistical Reports
Recent Statistical Survey Reports
Current Topics
A record-high 34,427 people committed suicide in 2003 …etc
Public Policies
Percentage of non-regular employees reaches 34.6% …etc
News Clippings
No ceiling on monetary rewards for inventions established by 43%
of companies …etc
Special Issue
Introduction of performance-based wage system and the reactions of
labor and management
JILPT Information
On February 5-6, 2004, we, JILPT, held an International Workshop on
INTERNATIONAL MIGRATION AND LABOUR MARKET IN ASIA.
You can see the summary and conclusions of the workshop on our web site.
http://www.jil.go.jp/english/events/0205_report.html
Statistical Reports
-Recent Statistical Survey Reports July 2004-
Features
Survey on Employees' Willingness to Work and Employment Management
General Survey on Diversified Type of Employment (2003) …etc
http://www.jil.go.jp/english/estatis/esaikin/2004/e2004-07.htm
Current Topics
-A record-high 34,427 people committed suicide in 2003-
An overview of suicide cases announced by the National Police Agency
in July showed that a total of 34,427 people had committed suicide in
2003. This was 2,284 more than 2002 (up 7.1%) and the worst number ever
recorded since statistics began in 1978. Men accounted for 72.5%.
By age, those aged 60 and older accounted for the greatest proportion
(33.5%), followed by those in their 50s (25.0%), those in their 40s
(15.7%), and those in their 30s (13.4%). The number increased sharply
by over 600 in both the 30s and the 40s.
The leading reason was "health problems" (37.5%), followed by
"financial and living-related problems" (35.2%), "family
problems"
(9.3%), and "work-related problems" (5.9%). A total of 8,897
people
committed suicide because of financial and living-related problems,
up 957 from last year. Incidents of suicide due to work-related
problems also increased by 114, totaling 1,878.
To counter the situation, the Ministry of Health, Labour and Welfare
has drawn up a manual for coping with depression as well as guidelines
targeting workplaces. Despite these efforts, it appears that the
situation is worsening rather than improving.
-Nippon Keidanren's final compilation : SMEs to raise wages by
3,576 yen-
In late July, Nippon Keidanren (Japan Business Federation) published
business category-specific settlement amounts of 2004 spring joint
labor negotiations among medium and small companies (SMEs). The average
settlement amount (weighted average) for 567 SMEs with fewer than 500
employees was 3,576 yen, corresponding to a wage hike rate of 1.41%.
Compared with last year's results, this was an increase of 280 yen
in value and 0.12 points percentage-wise.
In an earlier issue, we reported that Rengo (the Japanese Trade
Union Confederation) had set forth its policy clearly, starting with
this year's spring joint labor negotiations, of strengthening its
solidarity with individuals working in SMEs. Rengo's compilation at
the end of April of the unions participating in a united front showed
that the settlement amount for the 225,607 union members affiliated
with 25 organizations was 3,716 yen, corresponding to a wage hike rate
of 1.50%.
Public Policies
-Percentage of non-regular employees reaches 34.6%-
Results of a comprehensive fact-finding survey on the diversification
of employment patterns for 2003 released by the Ministry of Health,
Labour and Welfare on July 21 revealed the following makeup of Japanese
workers: 65.4% for regular employees and 34.6% for non-regular employees
(23.0% were part-time workers, 2.3% were contract employees, 2.0% were
temporary workers dispatched by personnel agencies, and 1.5% were
employees temporarily transferred to affiliated companies). The share
of non-regular employees rose 7.1 percentage points as compared with
the previous 1999 survey.
Of the business entities surveyed, 19.1% saw their share of non
-regular employees increase as compared with three years ago. By
employment pattern, an increase was seen in part-time workers (64.4%),
temporary workers dispatched by personnel agencies (13.3%), and contract
employees (13.1%) (multiple answers).
The leading reason for hiring non-regular employees (multiple
answers up to three) was "to cut wage costs," cited by 51.7%
of the
companies, followed by "to cope with daily and weekly work volume
fluctuations" (28.0%), "to adjust the volume of employment to
meet
economic fluctuations" (26.5%), and "to secure experienced workers
who can be immediately effective as well as competent personnel"
(26.3%).
By employment pattern, the leading reason for hiring contract
employees was "to cope with professional and specialized work
operations"; that for temporary workers dispatched by personnel
agencies was "to secure experienced workers who can be immediately
effective as well as competent personnel"; and that for part-time
workers was "to cut wage costs."
Meanwhile, the leading reason why non-regular workers chose their
current style of work (multiple answers) was "to help out with family
finances, to earn money for school expenses, etc." (35.0%). This
was
followed by "can work at times that are convenient" (30.9%),
"short
commuting time" (28.1%), and "there were no companies where
I could
work as a regular employee" (25.8%).
By employment pattern, the leading reasons were "can make use of
one's professional qualifications and skills" for contract employees,
"there were no companies where I could work as a regular employee"
for temporary workers dispatched by personnel agencies, and "to help
out with family finances, to earn money for school expenses, etc."
for part-time workers.
-Task Force of the Council for Gender Equality proposes changing
policies and programs currently premised on "single-income households"-
In July, the Task Force on Influence Survey, under the Cabinet
Office's Council for Gender Equality, compiled a report on the
systems and practices related to selection of lifestyle as well as
to employment and work. As a future policy and course of action,
the Task Force proposed a shift in systems and system management,
traditionally premised on single-income household units, to individual
-based units, and by so doing, create a society in which both men and
women can choose their lifestyles flexibly and in an unbiased manner.
News Clippings
-No ceiling on monetary rewards for inventions established by 43% of
companies-
A survey on R&D activities for FY2004 carried out by Nihon Keizai
Shimbun revealed that 43% of the major companies surveyed had already
introduced an in-house system to provide financial compensation to
employees who had invented patented technologies, "without setting
a ceiling." The survey targeted 439 major companies, and 316 companies
sent in valid responses (response rate: 72%). With a series of
remuneration-related lawsuits being instigated by former employees,
companies are aiming to head off such incidents by providing such
workers with more attractive benefits packages.
Even among the corporations that had set an upper limit, 11%
replied that the maximum amount allowed under their in-house system
was 10 million yen or more.
Different terms and conditions for calculating such amounts are
in place, such as providing a set percentage of the sales of products
that make use of the patented technology, or taking the employee's
degree of contribution into account. This means that the amount does
not necessarily have to be large. Still, most major electric appliance
manufacturers have already introduced such systems, while the system
is becoming increasingly prevalent in the precision machinery and
healthcare sectors. Takeda Pharmaceutical Co. and Mazda Motor Corporation
have recently installed such systems.
When asked about the anticipated outcome of lawsuits related to
remuneration, 62% of the companies replied that lawsuit cases would
most likely increase, revealing their sense of crisis.
(Nihon Keizai Shimbun, July)
-Matsushita to cut Japanese employees temporarily transferred overseas
by one-half; top managers to be recruited locally-
On August 3, Matsushita Electric Industrial disclosed a plan to
reduce by half the number of Japanese employees temporarily dispatched
to overseas manufacturing and sales bases by FY2006. Under the plan,
approximately 2,000 such employees will be returned to Japan.
Chief Operating Officers (COOs, or presidents) of regional
headquarters located in North America, Europe, China and Southeast
Asia will be appointed from locally recruited personnel, and be given
the opportunity to be promoted to board directors at head office.
The aim is to reduce costs incurred by dispatching employees from
the parent company, and, at the same time, pave the way for people
recruited overseas to be promoted and secure outstanding personnel
from the global field. The company also hopes to increase overseas
sales to survive stiff competition.
Approximately 290,000 people work around the world in the Matsushita
Electric Group as a whole. Of these, approximately 170,000, or about
60%, work in countries outside Japan. Consolidated sales totaled
7.479 trillion yen for the period ended March 2004. Overseas sales
accounted for 54% of this amount, or 4.002 trillion yen.
By region, North America generated 33.2% of sales, Europe, 27%,
China, 14.5%, and Asia excluding China, 25.3%. The company has set
a goal of posting consolidated sales of between 9.5 trillion yen
to 10 trillion yen in FY2006 and raise the share of overseas sales
to 60%.
(Asahi Shimbun, August)
Special Issue
-Introduction of performance-based wage system and the reactions of
labor and management-
In January 2004, we at the Japan Institute for Labour Policy and
Training (JILPT) conducted a survey on workers' motivations and ideal
employment management, and received responses from 7,828 people at
1,066 companies.
This survey focused on performance-based wage systems, and asked
the respondents about the strategy of emphasizing performance more
than age or period of service, as the criteria for evaluation. As a
result, approximately 60% of the companies said that such system
"applied to them" or "applied to them to some degree."
Meanwhile,
approximately 60% had adopted "a system of reflecting employees'
job performance in their wages." It became evident, therefore, that
a majority of companies have introduced the performance-based wage
system.
Continued on;
http://www.jil.go.jp/english/archives/emm/2004/no.21/21_si.html
