The Japan Labor Flash
No.22
Email Journal September 1, 2004
Statistical Reports
Main Labor Economic Indicators
Current Topics
Labor unions rally to spell out their goal of fortifying the
organization …etc
Public Policies
The Ministry of Finance to consult with the Ministry of Education,
Culture, Sports, Science and Technology on abolishing preferential
treatment in teachers' salaries …etc
News Clippings
All Oracle Corporation Japan employees to become teleworkers …etc
Special Issue
This year's Regional Minimum Wages Council report
Statistical Reports
-Main Labor Economic Indicators-
http://www.jil.go.jp/english/estatis/eshuyo/200409/index.htm
Current Topics
-Labor unions rally to spell out their goal of fortifying the
organization-
Many labor unions, as usually the case, are currently holding their
annual rallies. One noteworthy trend is the adoption of policies to
reinforce strategies to strengthen the foundation of their organization.
The National Confederation of Trade Unions, or Zenroren, held a
regular convention lasting three days in late July at a hotel in
downtown Tokyo. Representatives talked about their feelings of crisis,
triggered by the continued decrease in organizational members, and
about the large-scale membership reduction anticipated after 2007
when the baby-boomer generation retires and leaves the union.
They proposed forming a 12-member Zenroren Organizing Group, spending
approximately 200 million yen to establish a fund for promoting
organizational expansion, and increasing membership to 1.4 million
by 2010. Specifically, they will work to create organizations that
are rooted in regional communities, and try to unionize atypical
workers, youths and the elderly.
Meanwhile, the General Federation of Private Railway and Bus Workers'
Union of Japan held a two-day regular convention in early August to
confirm its new strategic policy for the coming year. The plan to
integrate with the All Japan Federation of Transport Workers' Unions
(Unyu Roren) and the Japan Federation of Transport Workers' Unions
(Kotsu Roren) was dropped in April this year. The new policy, therefore,
cited programs to expand the organization as one of the main activity
goals. The Federation will reportedly focus, first and foremost, on
unionizing employees working in companies that have been spun off
from their parent companies as well as workers who have extended
their employment contracts.
Public Policies
-The Ministry of Finance to consult with the Ministry of Education,
Culture, Sports, Science and Technology on abolishing preferential
treatment in teachers' salaries-
The Ministry of Finance will begin consulting with the Ministry of
Education, Culture, Sports, Science and Technology (MEXT) to abolish,
beginning next fiscal year, preferential treatment in salaries provided
to public elementary and middle school teachers. These preferential
measures had been out in place nominally to secure outstanding teachers.
The Ministry of Finance will demand the abolition of the Special
Measures Law on the Securing and Development of Teaching Personnel
(Law to Secure Teaching Personnel) which is used as a basis for setting
teachers' wages at levels higher than those of general local government
employees. In the future, the ministry hopes to reduce the national
government's share of compulsory education expenses (one-half of public
elementary and middle school teachers' personnel expenses are currently
being shouldered by the national government) by about 100 billion yen.
The Law to Secure Teaching Personnel was enacted in 1974 when there
was a severe shortage of teachers. Under the law, elementary and middle
school teachers receive monthly wages that are about 5% higher, on
average, than those of general government workers. The Ministry of
Finance determined that the shortage of teachers has already been
resolved, and saw no reason to provide preferential treatment in
teachers' wages. Starting this fiscal year, moreover, a "total sum
discretionary system" was introduced to subsidies provided to compulsory
education. Under this system, the national government decides only
the total amount of subsidies and lets local governments determine
how they will use them, thereby establishing a structure for enabling
local governments to decide, in principle, teachers' salaries and
numbers. However, the Ministry of Finance felt that, as long as The
Law to Secure Teaching Personnel was in place, local governments would
be prevented from expanding their discretionary power. The Ministry
had urged MEXT to abolish this law last year but had to give up the
idea because of strong opposition.
US$=\109 (September 1, 2004)
-Pension program subscription to be compulsory for corporations with
20 or more employees-
The Social Insurance Agency has decided to provide, beginning this
fall, intensive instructions to corporations that are obligated to
subscribe to the employee pension program but have not yet done so.
If these companies fail to respond, the Agency will force them to
participate in the program by the end of FY04 and collect premiums.
The targets will initially be narrowed down to business entities with
20 or more employees, including branch offices and business offices,
and gradually expanded thereafter. This is the first time that compulsory
enrollment will be attempted. The aim is to prevent companies from evading
premium payments prior to the yearly raise in employee pension premiums
that will begin this October.
All corporate and private business entities with 5 or more employees
(excluding certain business categories) have the obligation to subscribe
to the employee pension program. Under this system, employers and
employees each cover 50% of the premiums.
A FY02 survey found that, of the approximately 96,000 newly established
corporations, about 17,000, or 18%, did not subscribe to the employee
pension program. Some business entities illegally withdrew from the
program to evade premium payments.
Most non-participating business entities and corporations are small
to medium in scale, with 10 or fewer employees. It appears that very
few entities with 20 or more employees have decided against participating
in the program. The Agency will expand the scope of its aforementioned
instructions to include even smaller scale business entities while paying
close attention as the operations get under way.
News Clippings
-All Oracle Corporation Japan employees to become teleworkers-
Oracle Corporation Japan, a marketer and provider of software products
and services, will introduce by next spring a teleworking system that
will apply to all of its 1,448 employees. Other than having to report
to the office at least once a week or so, employees will be allowed
to work freely anywhere, either at home, inside a hotel, or even overseas.
The system aims at enhancing operational efficiency by eliminating
the hassle of commuting to work. Oracle will also use the system to
ensure a setup to allow its employees to continue working, even in
the event of office closures because of large-scale disasters and
other accidents.
Although many large corporations have begun introducing teleworking
systems in specific job categories and workplaces, it is still rare to
see teleworking being applied to all employees.
Oracle will introduce the system on September 1, targeting approximately
300 employees in charge of customer support, then gradually extend it
to other departments, such as accounting and general affairs. If all
goes smoothly, the system will be introduced to all departments by
March 2005. Up to now, the company has approved at-home work only for
employees who found it difficult to commute because of circumstances
such as raising children or taking care of the elderly.
(Nihon Keizai Shimbun, August)
-NEC to locate training of new software development department employees
in India-
Beginning this fiscal year, NEC has launched a program to send to
India new employees who have been assigned to the software development
department, to receive training and education. It is unusual for Japanese
IT manufacturers to outsource training to Indian enterprises.
According to an NEC survey, India's software industry has continued
to grow at an annual rate of 70% during the past 6 years, having
created a 1.4 trillion yen market in FY02. The goal is to have new
recruits learn and acquire practical IT skills.
The period of training is one month, and the company has already
sent 37 employees this summer, divided into two groups. A local IT
company was tasked with drawing up the educational program, and Indian
lecturers teach programming skills and other subjects in English.
The trainees will also visit local IT companies and inspect software
development operations.
According to NEC, the training fees charged by Indian corporations
are more than 40% lower than their Japanese equivalents.
(Asahi Shimbun, August)
Special Issue
-This year's Regional Minimum Wages Council report-
In our earlier issues, we have already reported that Japan's minimum
wage system comprises two programs, namely, region-specific and industry
-specific programs, and that deferment of wage hikes was recommended
for the first time two years ago. Report by the Regional Minimum Wages
Council on the region-specific minimum wage was released.
In line with this report, a period for soliciting and receiving
comments was set up in August, and the amount will be officially
determined at a meeting of the Central Minimum Wages Council to be
held in October.
Continued on;
http://www.jil.go.jp/english/archives/emm/2004/no.22/22_si.html
