The Japan Labor Flash No.85
Email Journal June 1, 2007
Statistical Reports
Main Labor Economic Indicators
Current Topics
Reasons New SME Recruits Joined Firms and Their Expectations of
the Government
Recent Trends in Increasing Number of Suicides Induced by Overwork
Public Policies
Counters for Private Job Introduction Agencies to Be Established
on Premises of "Hello Work" Offices in Tokyo
Three Ministries Actively Discuss Revisions to Program for Foreign
Trainees
News Clippings
Leading Banking Institutions Increasingly Inclined to Raise Salaries
Matsushita Electric Industrial Co. Affiliate Launches a "Full" Work
-at-Home System
Special Issue
Minimum Wage Levels and Livelihood Protection[Contact Us]
Statistical Reports
-Main Labor Economic Indicators-
http://www.jil.go.jp/english/estatis/eshuyo/200706/index.htm
Current Topics
-Reasons New SME Recruits Joined Firms and Their Expectations of
the Government-
At the end of April, the Tokyo Chamber of Commerce and Industry
published the results of a survey on the outlook of new employees
at middle-ranking firms and small and medium-sized enterprises.
When asked why they decided to join their current companies, a
majority of the respondents chose the following responses: "good
atmosphere in the workplace," "the work looked interesting," and
"I thought I would be able to demonstrate my ability and personality."
A majority also said that their job-searching activities had gone
"smoothly," although a large proportion of the female respondents
replied that they had been "rather difficult" or "difficult."
As for what they expect the government to tackle, the largest
proportion of the respondents cited "reform of the pension, medical
and other social security systems", followed by "measures to boost
the economy" and "measures to address problems arising from income
inequality." "Measures to promote child-rearing and other issues
related to the decline in the birthrate" was ranked seventh among male
respondents, but second among their female counterparts, indicating a
high level of interest in this issue among females.
The survey targeted 1,209 persons in 364 firms which participated
in a training program conducted by the Tokyo Chamber of Commerce;
effective returns totaled 1,182 and the valid rate was 97.8 percent.
US$=121yen （June 1, 2007)
-Recent Trends in Increasing Number of Suicides Induced by Overwork-
According to Jiji Press Ltd,. in a lawsuit brought to the Tokyo High
Court, in which the parents of an employee of Suzuki Motor Corp. (then
41) demanded that the company pay them compensation, claiming that the
suicide of their son was attributable to depression caused by long
working hours, the parents and the accused company reached a settlement
on May 14, with the company agreeing to pay 60 million yen and satisfy
other conditions.
Regarding the suicide of a woman (aged 26 in 2004) who was engaged
in multiple editing tasks on a temporary basis, the Tokyo Council for
Compensation for Industrial Accidents agreed on May 15 that her suicide
was induced by overwork. A request had been made by the bereaved family
in response to a previous decision by the head of a Labor Standards
Inspection Office that bereaved family compensation would not be
applicable to her death.
In fiscal year 2006, a total of 353 workers who had serious medical
conditions such as cerebral hemorrhage, cardiac infarction, etc. had
their cases ruled as official workers' accidents triggered by overwork.
In mid-May, the Ministry of Health, Labour and Welfare's statistics
showed that a record high of 205 workers were given official status
as victims of workers' accidents for problems such as depression due
to work-related stress. Of these, the number of those in their 30s
was conspicuous, accounting for some 40 percent. The number of deaths
induced by overwork, a record high of 66 persons, was 1.6 times the
figure marked the previous fiscal year.
Public Policies
-Counters for Private Job Introduction Agencies to Be Established on
Premises of "Hello Work" Offices in Tokyo-
At a meeting held on May 9, the Government's Council on Economic and
Fiscal Policy suggested that some of the job-introduction services
currently provided by Hello Work should be available to the private
sector; the recommendation was approved. The plan is to set up counters
for private job introduction agencies on the premises of two Hello Work
offices in Tokyo, so that job-seekers will be allowed to choose freely
between the traditional public counter and the new private sector counter.
This measure will be implemented on a tentative basis for approximately
three years. Hello Work is thus adopting a service system based on public
and private competition, and the new step seems likely, if it works
successfully, to have a considerable impact on the movement calling for
complete privatization of public job-introduction services.
-Three Ministries Actively Discuss Revisions to Program for Foreign
Trainees-
Although the Industrial Training and Technical Internship Programs
for Foreign Workers aims to promote international contributions in
the form of technical skill transfer, the programs' objective is
currently viewed as largely theoretical, since they have been misused
by firms which wish to secure low-cost labor. In an effort to curb
misuse of the programs, three related ministries - the Ministry of
Health, Labour and Welfare, the Ministry of Economy, Trade and Industry,
and the Ministry of Justice - have launched their own proposals for
revisions to the programs.
Placing importance on the protection of foreign workers, the MHLW
has drafted a plan calling for abolition of the one-year training
course, which is not covered by the regulations of the Minimum Wage
and other labor-related Laws, and extending the two-year internship
period to three years.
The METI has suggested maintaining the current one-year training
program, but strengthening controls and guidance for employees to
ensure appropriate use of the program. At the same time, it has also
argued for relaxing the conditions for extension of residence status
so that a wider range of firms can accept trainees from abroad, contrary
to the MHLW's proposal.
The Ministry of Justice, on the other hand, has proposed abolishing
the current two-year technical internship program and instead launching
a new "short-term working system for foreigners" whereby authorized
organizations are allowed to accept foreign workers for a maximum three
years without any restrictions on categories of industry or types of
jobs. It has also emphasized that the objective of the programs should
be shifted to securing domestic labor force. It will be interesting to
see the outcome of the discussion on these revisions.
News Clippings
-Leading Banking Institutions Increasingly Inclined to Raise Salaries-
Japan's leading banking institutions have raised the salaries and
bonus payments of their employees. During the period of winter-like
hardship when they suffered from having to handle a tremendous amount
of bad loans, they restricted personnel expenses in line with other
restructuring measures. However, now that they have started payment
of corporation taxes and completed repayment of public funds, they
have also started to improve the treatment of their employees, one
of their aims being to prevent quality personnel from leaving for
foreign-capital firms or other financial institutions.
The Sumitomo Trust & Banking Co., Ltd. and its labor union have
agreed upon pay hikes for the first time in 12 years, prior to other
banking institutions: the management answered the demand of its unions
by raising average annual income by three percent compared to that
actually recorded in fiscal year 2006.
Sumitomo Mitsui Banking Corp. has increased the starting salary for
those of this spring's new recruits who were college graduates and
hired on a career-track basis, by 31,000 yen in fiscal year 2006 to
205,000 yen, the first increase in 14 years. The bank is considering
pay hikes for younger established bankers, too.
Despite such moves, there may be heightened complaints that banks
should give priority to returning their profits to shareholders and
customers, on the grounds that their business performance has revived
thanks to ultra-low interest rates on public funds.
(Asahi Shimbun, May)
-Matsushita Electric Industrial Co. Affiliate Launches a "Full" Work
-at-Home System-
Matsushita Electric Industrial Co., Ltd. has established at SiM 24
(Osaka city), an affiliate specializing in semiconductor designs, a
"complete work-at-home system" whereby employees are asked to come to
their offices only once (or so) a month.
All four employees, except the president, will be subject to the
new system and come to the office only when they hold meetings. The
company is a so-called "in-house venture company" launched in 2005
by an employee of the parent company. It plans to increase the number
of employees to ten or more over the coming two years, and to achieve
sales amounting to 100 million yen in fiscal year 2009 (sales in fiscal
year 2006 totaled 24 million yen).
In April this year, Matsushita Electric Industrial Co. itself adopted
the home-based work system for its white-collar workers. (See "News
Clippings" in issue No. 82 of the Japan Labor Flash.)
(Yomiuri Shimbun, May)
Special Issue
-Minimum Wage Levels and Livelihood Protection-
Minister of Health, Labour and Welfare Hakuo Yanagisawa announced at
a Cabinet meeting that labor standards inspection offices across the
country will conduct simultaneous check-ups of 10,000 business
establishments within a month starting on June 1. The check-ups aim
to secure proper compliance with minimum wage regulations and to
familiarize establishments with the regulations.
Continued on;
http://www.jil.go.jp/english/archives/emm/2003/no.85/85_si.html
