(1) The Coming of the Global Financial Crisis and the Collapse of Neo-liberalism

In 2008, triggered by the subprime loan crisis in the US, the world plunged into a simultaneous financial crisis.
Blows not only to the financial system but also to the real economy and employment have spread around the world, and the drop in GDP (gross domestic product) and the rise in unemployment have become a serious problem. Countries around the world have struggled to take emergency measures including injecting public funds into financial institutions, employment measures and tax cuts.
Market fundamentalism, promoted by the US and the UK through neo-liberalistic policies and ideas symbolized by Ronald Reagan and Margaret Thatcher during the 1980s, rapidly penetrated into the world as if it were the global standard. Under the idea that the market is almighty, society lost control, and companies focused only on their own profits and shareholders’ interests, committing themselves to cutthroat competition without morality by ignoring other stakeholders. As a result, the basis of society, such as fairness, safety or security, has been damaged.
However, the economy controlled by the neo-liberalistic ideas that never bring sustainability to society has collapsed due to the financial crisis after having spun out of control. In the US, public funds have been injected into financial giants since the Lehman Brothers shock, and the bankruptcy of the financial services firm has caused unprecedented events even in the manufacturing sector, such as the bankruptcies and nationalizations of GM (General Motors) and Chrysler. The shock has run through the world, rapidly raising concerns over the economy and employment.

(2) An Economic Recovery That Does Not Seem Real, and Damage Caused by Neo-liberalistic Reforms

As neo-liberalism gained power in the 1980’s and overwhelmed the world from the 90’s to the 2000’s, the Koizumi Administration in Japan spurred the trend advancing neo-liberalistic reforms that even deregulated what was supposed to be regulated through loud market neo-liberalistic slogans as “From the public to the private sector,” “Small government” and “Self-responsibility.” The reality of the recent economic boom, which was said to have been the biggest ever, was that workers were not able to enjoy the fruits of the record high profits mainly earned by large corporations. The “boom” was really a “jobless recovery” based on the sacrifices of working people, as seen in many cases of “restructuring” and rapid replacement of regular by non-regular workers. As a result of the decrease in regular workers by about 3.7 million and the increase in non-regular ones by 6.8 million in this decade, the percentage of the latter has risen to 40% of all jobs and Japan’s employment structure has been seriously distorted. The number of the working poor, whose annual income is two million yen or less, has exceeded ten million, composing 20% of all employed workers. The number of families receiving public assistance reached one million in 2002 and even rose to 1.2 million in April 2009. The middle class, which previously was the majority supporting the social system, as represented by the phrase “all Japanese belong to the middle class,” has now collapsed. The social security system has not been reviewed in order for it to respond to the changes in the employment structure. Poverty has seriously affected children’s education, leading to the “generational chain of poverty.” On the other hand, regular workers have been obliged to sacrifice their lives and health, as symbolized by long working hours and mental health problems. In addition, they are more concerned about the unprecedented employment crisis and high unemployment rate, currently reaching 6%, the worst level ever. In such a society, where neither regular nor non-regular workers can have hopes for tomorrow, the number of suicides has exceeded 30,000 annually for eleven years in a row, and murders within families and other atrocious crimes are taking place increasingly more frequently, making people more and more anxious.

(3) Deterioration of Japanese Society

As the Japanese Government’s lack of policy continues despite poverty and widening income gaps, the global economic crisis following the Lehman Brothers shock in the fall of 2008 was a serious blow to the employment market in Japan. Japanese society truly “bottomed out.”
Conventionally, the employment and wage systems, which had been centered on regular male employees and established through rapid economic growth, were the standard model in Japan. Therefore, non-regular work was positioned as being supplementary to household income and carried out by women. The social security system corresponded to this basic structure. However, due to the increase in the numbers youths unable to find full-time jobs in the employment ice age following the burst of the bubble economy, and in workers reemployed in a non-regular status after corporate bankruptcy and restructuring, new graduates and breadwinners have had to become non-regular workers without sufficient safety nets. Thus, the number of unstably-employed and low-income workers has dramatically increased. It is extremely difficult in a “bottomed out” society to bounce up once one sinks to the bottom. It has long been said that the morality of both companies and individuals has been corrupted by the spread of greed and the kind of behavior that puts self-interest first. Japan’s unemployment rate is among the lowest in the world, but everyone in this country now strongly feels that stability of employment leads to the stability of society.

(4) Signs of Change in the World, International Solidarity Required, Asia Becoming More Important

In the US, the Obama Administration began with emphases on such values as fairness, equity and solidarity, based on reflections on market fundamentalism. The new president of the US has strengthened regulations on hedge funds so as to monitor global finance, while calling for the Green New Deal Program, totally focusing on employment and the environment. In addition, the administration has started to support trade unions under the recognition that the enhancement of trade union functions is essential for the revival of a strong middle class. The ILO (International Labor Organization) General Assembly held in June 2009 adopted the “Global Jobs Pact” to engage in measures for economic recovery with joint efforts between the government, labor and management, focusing on employment measures to tackle the global economic meltdown. The world is surely changing in search of a new order that replaces the conventional framework under the new values. Global cooperation is needed to cope with global-scale problems, such as global warming, resource and energy issues, the food crisis and poverty, in order to realize a sustainable economic society. In particular, it is important to work for and build a global framework for realizing a low-carbon society, and campaigns based on the “Green Job Strategies” are becoming crucial.
In addition, there are ongoing serious situations threatening world peace, such as nuclear tests and the development of nuclear weapons. Efforts to build an international consensus on the abolition of nuclear weapons and a ban on nuclear tests are a mission of Japan as the only nation that has suffered atomic bombing.
As global solidarity is becoming more and more important, Japan is required to strengthen ties especially with Asian countries. “Demand within Asia” is being emphasized in terms of economy. In particular, China and India have a big impact on the world economy. It is imperative for the international labor movement to play an important role in the building of a new global economic order, and the RENGO movement is expected to play a leading role in the labor movement in Asia.

(5) Paradigm Shift also in Japan Now!

(1) Activities Focusing on Small- and Middle-sized Enterprises and Non-regular Workers, and the Establishment of Work Rules during the Past Two Years

RENGO set up the Department of Non-regular Employment in October 2007, soon after the 10th Regular Convention and clarified its stance in addressing the issue of non-regular work. During the two years since that time, in order to improve the working environment and conditions for workers in small- and middle-sized enterprises (SMEs) and non-regular workers RENGO has carried out a “Stop the Unequal Society Campaign” and worked for the enactment of the Labor Contract Law (December 2007), the revised Labor Standards Law (December 2008), the revised Law for Employment Promotion, etc. of the Disabled (December 2008), the revised Employment Insurance Law (March 2009) and the revised Child-Care and Family-Care Leave Law (June 2009). RENGO has succeeded in raising the minimum wage by 30 yen in terms of nationwide weighted average during the recent two years based on the enactment of the revised Minimum Wage Law (November 2007) and the roundtable agreement (June 2008).
At the end of 2008 when employment instability became more serious, RENGO positioned December 2008 as the “month for emergency employment measures” and focused its movement on the strengthening of lobbying effort toward the Japanese Government and the business community. In this context, RENGO issued the “Labor-Management Joint Declaration toward Stabilization and Creation of Employment” (January 2009) together with Keidanren (Japan Federation of Economic Organizations) and reached the “Agreement between the Government, Labor and Management toward the Realization of Stabilization and Creation of Employment” (March 2009), involving the Japanese Government. Thus, RENGO succeeded in realizing the “Benefits to Support Work and Life” advocated by RENGO as the second safety net, even if only for a limited period of time, as a result of its efforts for sharing a concept of prioritizing the employment issue among the government, labor and management.
In the Spring Struggle for a Better Life, RENGO strengthened the joint struggle with the SME Joint Struggle Center and the Joint Struggle Congress of Part-time Workers toward rectifying disparities in distribution and for recovery in the labor distribution rate. In particular, RENGO has initiated five joint struggle liaison committees and advanced fundamental reforms for institutional frameworks toward enhancing the ripple effect of wages since the Spring Struggle for a Better Life in 2009.
RENGO was far behind the target of the 4th Action Plan with regard to the expansion of organizations, but the total number of trade union members increased for the first time in 13 years, according to the 2007 Basic Survey on Trade Unions, and the drop in the unionization rate has been halted.

(2) Community Activities Solidify with a Focus on Labor Consultations

RENGO worked for the solution of individual labor disputes in communities with labor consultation activities taking root in their efforts to strengthen activities mainly in 106 model local councils. In addition, RENGO locals and the RENGO Headquarters together succeeded in having various issues revealed through the employment consultations reflected in government measures. The accumulation of such persistent efforts encouraged the shift from the focus only on deregulation policies to those emphasizing the viewpoint of worker protection.

(3) A Certain Degree of Progress Attempted for Support to Workers and Cooperation with Other Groups

Under the slogan “Let Us Build a Society in which We Can Live and Work Together Through Solidarity with All Working People,” donations exceeding 300 million yen have been collected as of the middle of September, 2009 as a result of RENGO’s appeal to working people both inside and outside the organization for support to workers who have lost their jobs and homes due to dismissals. In addition to support to various groups, there have been new efforts where RENGO locals develop their own activities to support the employment, work, and lives of people by utilizing the donations and cooperating with NPOs (non-profit organizations). RENGO has also sought to expand solidarity with various groups and NPOs in a mass movement to galvanize public opinion and realize the policies and systems advocated by RENGO.

(4) Victory of the Opposition in the Upper House Election and the “Twisted Diet,” and the Long-Cherished Change of Power Realized!

The Democratic Party of Japan (DPJ) became the dominant political force over the ruling coalition in the Upper House election of July 2007. In the “twisted Diet,” the provisional gasoline tax was abolished, the Basic Law on the Civil Service Reform was passed, and a checking function was enhanced in Diet-approved personnel affairs while lawmaker-initiated bills were filed by the opposition parties and measures were discussed for revisions among both the ruling and opposition parties, thus dramatically changing Diet management. In addition, such problems as “hidden pension records” were exposed as a result of the enhancement of disclosure of information and monitoring functions on the government and administration, and the collusive political structure between politicians of the major Liberal Democratic Party and bureaucrats became under fire. The major party encountered trouble in handling the government, and after Mr. Koizumi the leadership of the coalition was taken over by Mr. Abe and subsequently by Mr. Fukuda without any Lower House election being held. However, both Mr. Abe and Mr. Fukuda abandoned the premiership before their terms ended, and Mr. Aso, who took over the position for the general election in an extremely unusual situation, saw his approval rate drop continuously. He was obliged to disband the Lower House on July 21, 2009 and set a general election date for August 30 amid chaos in the ruling coalition after continuous defeats in major local elections and in the election of the Tokyo Metropolitan Assembly. The opposition parties, mainly the DPJ, advocated “a change of power” and carried out their election campaigns on the basis of a shift from politics centered on bureaucrats and lawmakers with vested interests to politics centered on people’s lives and the sovereignty of the people. In the general election, the DPJ won 308 seats alone and 318 (of a total of 480) as a new coalition with the Social Democratic Party and the People’s New Party, thus realizing the change of power. RENGO carried out the “Stop the Unequal Society Campaign” for the Upper House election in July 2007 and the recent Lower House election. The change of power had been a long-cherished wish of RENGO since its foundation, and its roles and responsibilities toward the solidifying of democracy and the realization of politics focusing on the people have now become much greater.

(5) 20 Years since the Foundation of RENGO: Paradigm Shift also Required for the Labor Movement as the Remaining Issue!

RENGO formulated the “Vision for the 21st Century” and hammered out a vision of a “welfare society based on labor” on its tenth anniversary. In addition, the RENGO Evaluation Committee, consisting of outside intellectuals, urged RENGO to overcome the limitations of in-house trade unions so that working people can fight the absurdities of society through solidarity. RENGO has put up the slogan “RENGO Changes Itself and Changes Society” since its 8th regular Convention and has reflected suggestions made in the reports of the Evaluation Committee in its campaign policies. At the 10th Regular Convention, RENGO raised the slogan “Let Us Build a Society in which We Can Live and Work Together through Solidarity with All Working People,” and clarified its stance concerning how RENGO would change itself and change society. During this time, RENGO strove to play the social role of the labor movement, including the promotion of a “face-to-face movement rooted in the community,” and the establishment of model local councils in RENGO locals, the establishment of the Department of Non-regular Employment, and efforts for improving the working conditions of non-regular workers. Expectations for RENGO from society are mounting as unrest over unemployment prevails. RENGO must respond to such expectations and make efforts to play its role more effectively.
RENGO has failed to have the participation of women reflected effectively in an increase in the number of union officials. RENGO is required to strive to realize gender equality and promote women to union executive positions from the viewpoint of building sustainable society.
Market economy without properly functioning trade unions becomes uncontrollable. It is necessary for RENGO to share the perception that trade unions are an indispensable infrastructure element for the security and stability of society and to play the role and take the responsibilities expected of the labor movement.
Twenty years have passed since the foundation of RENGO. In October 2008, RENGO set up the 20th Anniversary Project Team to formulate a plan to reform its movement. The project team prepared the “Recommendations for the 20th Anniversary” (provisional title) based on discussions at all affiliates and RENGO locals. RENGO needs to start over again and seek to firmly share perceptions and advance its movement according to the agenda “What do trade unions exist for?” on its 20th anniversary. In the midst of intensifying global competition, while some suggest that trade unions tend to be closed-minded in protecting employment and the various working conditions of their members, it is essential for RENGO to improve the social role required of the labor movement for protecting the employment and lives of union members, and RENGO will share among all affiliates the perception of aiming its policies in that essential direction.

RENGO will adopt the following focal points for carrying out its campaigns powerfully for the first two years following its 20th anniversary.

< Basic ideas >

• RENGO will strive to restore a powerful middle class for realizing policies toward building systems to support society, such as the promotion of a work-life balance and the social horizontality of working conditions, the securing of high quality employment, the perpetuation of the “Benefits to Support Work and Life” plan as the second safety net, the building of a new safety net through a combination of active employment policies and social security, the promotion of equal treatment, the revitalization of the local economy and securing of employment in communities, and the nurture of the next generation. The overall unemployment rate rose to a record high 5.7% in July 2009, and the job offers-to-seekers ratio was a record low at 0.42, having worsened each month. There are growing concerns about the employment situation becoming unprecedentedly severe. Toward securing employment, sufficient alertness and measures are necessary to avoid another employment ice age following the downturn in the economy, in addition to the realization of an economy driven primarily by domestic demand, the expansion of measures to support the creation of new industries and jobs, and the Employment Adjustment Subsidy system, as well as the securing of new graduates and the steady promotion of mid-career recruitment for those who were unable to find a full-time job during the employment ice age. Further, RENGO will commit itself entirely to the improvement in rules and systems toward the protection of workers’ rights and various employment and working conditions while recognizing as inevitable the transfer of employment according to the transformation of industries and businesses caused by the creation of new industries. In this case, RENGO will strive to enhance the global labor movement in conjunction with relevant policies for strengthening international solidarity and clarifying rules of finance, economy and employment on a global level under the common perception that it is no longer possible to achieve improvements in rules and systems only in a single country.
  
  
• Community-based activities are equal to efforts to improve awareness of and the credibility of RENGO and the image of the labor movement. In addition, RENGO is requested to strengthen cooperation and solidarity with various groups that have the same goals, and expand opportunities for, and become the core and stand at the forefront of, shaping opinion among a wide range of working people from the position as a national center responsible for the rights of all workers and the improvement in various employment and working conditions. The change of power has now been realized, and RENGO will pursue the formation of social solidarity and leadership in expanding the power base of working people, and the improvement of its capabilities to realize policies while strengthening relationships with the government and the ruling coalition.
  
  
• Major premises to the realization of policies and the encouragement of corporate management focusing on workers are to strive to fundamentally review policies that emphasize only arbitrary cost reduction and deregulation, promotion of investments from overseas and shareholder-centered management promoted by the government and managements. To this end, it is essential to restructure collective industrial relations and enhance the bargaining power of trade unions as the opposing force. RENGO, affiliates and RENGO locals will need to carry out campaigns with concerted efforts in order to strengthen the power of each organization to face its counterpart, such as the government, political parties or management. In particular, with regard to corporate management, RENGO will strongly encourage the shift from shareholder-centered management to multi-stakeholder management with a good balance between employees, consumers and communities.
  
  
• The new administration led by the DPJ is requested to shift from the current politics to those focusing on community members through a stable handling of the government. RENGO supports the new administration and it is our mission and responsibility to hold candid dialogues with the new administration and ensure that the voices of working people are reflected in decision-making for solving the increasingly serious employment problem, and for building a society in which people can live without fear. Besides this, a victory in the Upper House election in 2010 is crucial for political parties supported by RENGO to establish a decisive political foundation. RENGO, with its affiliates and RENGO locals, are determined to make concerted efforts with this consciousness in mind.