(1) Expanding Disparities at the Global Level

The problem of disparities and polarization is becoming more serious at the global level. The United Nations Development Programme states, in the Human Development Report 2005, “The world’s richest 500 individuals have a combined income greater than that of the poorest 416 million. Beyond these extremes, the 2.5 billion people living on less than $2 a day 40% of the world’s population,” and raises an alarm over the problem of worldwide disparities. Information and money cross borders in real-time and the world macro-economy is growing increasingly rapidly as a result of the startling progress of information technology, while disparities in income, opportunities for education and employment, health, and average life expectancy continue to expand between countries. The international community is now divided by the North-South problem and by religious and ethnic problems. We face a severe situation due to conflicts and environmental destruction, which at the same time make it difficult to solve problems.

(2) A Recovery in Corporate Profits Based on Drastic Cost Cuts

In Japan, like in other countries, the rapid spread of market mechanisms has prompted companies to give priority to shareholders’ interests and international competitiveness, leading to significant changes in social conditions. Coupled with the government and ruling party’s deregulation policy that compels companies to drastically cut costs and strengthen international competitiveness, the Japanese economy has recovered in the past few years and many corporations have set record profits.

(3) An Economic Recovery That Does Not Seem Real, Expanding Disparities and Poverty

In the process of the deep economic slump and then recovery under the Koizumi and Abe cabinets’ market-oriented policies, income gaps are widening among employment patterns, industries, company sizes, and regions. In other words, a rapid polarization is underway. There has been an increase in the number of working poor, who work under bad working conditions and at low wages below the breadline, while regular workers are physically and mentally exhausted and the number of workers in poor mental health, as well as the number of deaths and suicides from overwork, is rapidly increasing. The work-life balance has been disrupted, and this may further lower the birthrate. Small and tiny companies, mainly contractors, have become bankrupt or closed operations one after another in the midst of severe competition to cut costs. This phenomenon has had serious effects on local economies.

(4) Growing Fear for and Uncertainty over Lives

The government has given high priority to market-oriented policies and fiscal reconstruction, resulting in increasing burdens and shrinking benefits. As taxes and social insurance premiums rise, distrust of the public social insurance system has intensified due to personnel shortages in the medical and care areas, unfair billings by care service providers, and “disappearing” pension records. Moreover, given the falling birthrate, measures for supporting childbirth and child-rearing by families and single mothers are inadequate, and there is growing concern for the welfare system as a whole.

(5) Moral Degeneration and the Deterioration of Japanese Society

(1) Activities Focusing on Small Business and Non-regular Workers and Local Communities

Following the regular Convention in October 2003, RENGO has incorporated the Final Report of the RENGO Assessment Committee (submitted in September 2003) into its action policy. During the past two years, RENGO has carried out activities for redressing disparities, particularly for smaller business and non-regular workers, with the aim to establish a visible movement rooted in local communities. During the last year, RENGO set up 106 model Local Councils nationwide, launched one-stop services for working and living, conducted a “Stop Social Disparities” campaign, and acted in a unified way to realize RENGO’s policy proposals, advancing the Spring Struggle for a Better Life, and expanding the organization.

(2) Organizational Expansion, Demands for Proper Policies and Institutions, and the Spring Struggle for a Better Life

RENGO’s efforts under “Organizing Unions: the Third Action Plan 21” led to a net increase of 170,000 non-regular members (including part-timers).The total  membership as the Third Action Plan has increased by 363,000.

RENGO, together with affiliates and Local RENGOs, opposes the introduction of a “white-collar exemption” system and was able, with public support, to force the government to give up on submitting the bill. The revised Part-Time Labour Law prohibits discriminatory treatment, though the revision is still inadequate because its targets are very limited. It was decided that the minimum wage should be determined at the Central Minimum Wages Council in line with the agreement of the round-table meeting by government, but the wage level was not sufficient to raise the living standard. Regarding tax increases for salaried workers, RENGO adopted a new approach called a “think-tax.jp” project, using the Internet.

The Spring Struggle for a Better Life has also produced positive results. Thanks to collaboration with the joint struggle on smaller unions among affiliates, wage increases over the previous year have been secured for four consecutive years. The second year of collaboration with the joint struggle on smaller unions among affiliates s demanded an “hourly wage of \1,000” and aroused public opinion.

(3) Decline in the Unionization Rate, and Calling into Question the Importance of Trade Unions

RENGO has made efforts to expand its areas of activity and review approaches under the slogan of “changing RENGO to change society.　Trade Unions to Change, Society to Change” With a rapid increase in non-regular workers, however, efforts to expand and strengthen the organization have met with varied success among affiliates. Only 60.5% of the goal was attained, and the unionization rate dropped to 18.2%.

The influence of trade unions as a counterpart in individual labor-management relations has also declined in the increasingly severe management environment, characterized by a diversification of union members’ attitudes and a low percentage of union members. Trade Unions must seriously reflect on the fact that trade unions have not been able to fully perform the function of monitoring management in the event of scandals.

(4) Mounting Expectations for Trade Unions

RENGO’s policies on labor, taxation and social security have become increasingly difficult to attain as the Koizumi and Abe Cabinets have pushed deregulation and fiscal reconstruction. Though the Spring Struggle for a Better Life has attained some results over the past two years, our response to the attitude of the business world and ruling party, which pursue international competitiveness, has not been sufficient. Our efforts to improve labor’s share and to redress disparities have not yet borne fruits.

Focal Points of Future Activities
Over the next two years, RENGO will adopt the following three focal points for its campaigns:

(1) Response to “Easy-to-Use Labor”

The replacement of regular workers with non-regular workers, which companies are carrying out to hold down aggregate personnel expenditure, is polarizing Japanese society and segmenting workers. At present, the government is trying to push for a further deregulation policy called Labor Big Bang. RENGO must make full-fledged efforts to resist the demand for “easy-to-use labor” which has contributed to the improvement of corporate competitiveness and profits.

(2) Solidarity of All Working People—Toward a Movement That Can Win the Sympathy of Union Members

RENGO placed importance on the problem of non-regular employment, but these activities have not necessarily been shared by trade unions. Very few non-regular workers and employees at smaller firms are organized. It is necessary to question whether trade unions are reliable partners for the workers who desperately need them. Some argue that RENGO, which is composed mainly of regular workers at large enterprises and public employees, is no longer an organization that represents labor. It is an urgent task for RENGO to rebuild a movement that also encompasses employees at smaller businesses and non-regular workers. To this end, RENGO must perceive both regular and non-regular workers as being on the same footing, and make further efforts to ensure that the significance, objectives and practice of solidarity are shared among affiliates and enterprise-based unions and to forge a movement that can win union members’ “sympathy.”

(3) Reform of Working Patterns, and Creation of a Work-Centered Welfare Society*

The problem of disparities and polarization are not problems for only some workers. The negative effects of unfair and irrational labor practices will reach all workers. A society in which companies grow at the expense of workers and which makes light of “labor” as a basis for social development and prosperity cannot be a sound society. RENGO will strive to reform working patterns to realize a work-life balance so that all people can feel comfort and affluence, and will seek to improve labor’s share and establish fair work rules. In other words, RENGO’s top priority as a national center is to pave the way for a “work-centered welfare society.”

*The work-centered welfare society is a society that guarantees employment for everyone. It has a fully developed network of social standards for fair wages, working hours and equal treatment. It includes a safety net that guarantees livelihood in the event of work-related accidents, unemployment and sickness, or in old age. It provides men and women with an opportunity to participate actively as equal members of society, allowing them to assume their joint responsibilities.

【Goal 1】
To expand and strengthen the RENGO organization to allow it to better play its expected role, and to create a network for the solidarity of all workers, regardless of employment patterns.

【Goal 2】
To reform working patterns to improve working conditions for all working people, realize a work-life balance, achieve gender equality at the workplace, and establish decent work.

【Goal 3】
To realize a fair and equal society, and rebuild social nets for safety and trust through a linkage of employment policies and social security.

【Goal 4】
To pursue social justice through the international trade union movement and address the negative effects of globalization, including deteriorated employment, expanding gaps between the rich and poor, and the worsening global environment.

【Goal 5】
To establish a “political system that enables regime change” so that people who work diligently are properly rewarded.