STATEMENTS

Rengo's statement over the speed of deregulation

February 2, 1999

Etsuya WASHIO
President of Japanese Trade Union Confederation (JTUC-RENGO)

1. Rengo's basic stance

1). Rengo's basic attitude toward deregulation has always been to stabilize and improve life and employment conditions in Japan.

We support deregulation of economic restrictions. We also support strengthening rules governing the safety and health of consumers and the work force and conservation of the environment which can lead to an increase in employment and regional economic activities.

2). The effects of deregulation hold the promise of many positive contributions to society and the economy, but there are also some potential problems.

Deregulation in the information and communication sectors will spur new activities in those industries and create new employment opportunities.

On the other hand, deregulation can create severe competition among companies. This can lead to bankruptcies, increases in unemployment, declines in labor standards and instability in the work force. Those industry conditions will ultimately harm consumers. For example, there is a rise in internet crimes.

3). It is of major importance to explore ways to prevent deregulation from effecting employment or harming economic conditions for consumers. Simultaneously, it is also of prime importance to explore solutions to current unemployment and the general economic stagnation created by current severe economic conditions.

Furthermore, we should strive to improve reforms of current restrictions. We should set fair rules and install a system to observe and confirm that these rules are working. Administrative rules should require follow-up observations in addition to approval before a system is implemented. This system should be expanded to include new industries, new products and new services.

2. Deregulation as a force to increase regional employment by stimulating growth

1). Industrial restriction laws, including standards for permission to increase existing institutions in the Kanto and Kansai urban regions, must be reconsidered so as to maintain and increase employment and activities of urban industries and universities.

2). The environment for the opportunities of the private sector for the assistance of old people, maintaining quality and standard of social service as much as possible and safe operation of the institutions should be fixed. In addition to that, the omsbudsman system to safeguard for possible fraud should be strengthened.

Furthermore, there is need for radical development of the care-giving sector, specifically industries such as home help for the aged and special nursing homes.

3). There is also a pressing need to consider liberalization of the national university system, which currently works under fixed numbers. An open standard that can compare curriculum and lectures to private universities should be considered, as well as greater flexibility for university management.

Also, there should be an increase in the opportunities to take university entrance examinations. These qualifying tests should be offered several times a year.

3. Establishing fair labor standards

1). There are some unfair and unstable employment conditions for workers dispatched on company assignments. These include one-sided cancellation of labor contracts, conditions that differ from contracts, and release of an employees private information.

New regulations must be considered for workers dispatched on company assignments that protect them against such practices. Also, there must be guarantees of workers' insurance coverage and clients must be obliged to employ such workers in contracts that exceed current one year limits.

To protect general security of employees, we should prohibit all schemes that dispatch temporary employee to work sites, with the exception of specialty work. We should use conventional employment methods to maintain stability.

2). With regards to employment agents that work on commission, these companies should be regulated, and penalties should be considered for violators of ILO Convention Number 181, rules of the privacy and fair employment.

3). For employment arranged by agencies that do not charge commissions, there must be conditions to protect the workers' privacy and false employment contracts. Deregulation should be considered in light of guarantees of those conditions.

4. Rules for fair trade, consumer contract laws, the protection of private information and free flow of information.

1). Anti-monopoly laws and their enforcement need to be strengthened, and an avenue for private litigation needs to be opened as soon as possible. Penalties should be applied to companies that violate the subcontract law in order to maintain fair and free competition and the benefits such an environment brings to consumers.

2). Various products and electronics services have been developed around the increasingly popular debit card system. To solve potential troubles for consumers, a consumer contract bill (provisional name) should be established as soon as possible. We hope this bill can be submitted and passed by the current Diet.

The bill should include the following:

  • Enterprises should be screened to prevent fraud.
  • A company using such information should provide consumers with enough information about their company.
  • The conditions necessary to cancel the contract should be clear.
  • Directions for products and services and a mechanism to recall such products if need be should be made standard.
  • 3). Information in financial business should be freed by 'finance reclaiming law' and 'an early balancing law'. The rule to free the results of the inspection and observation of the finance competent authorities should be fixed and information should be open and accessible.

    It should be noted that with progress and internationalization of information and communication technology, there exists greater possibilities of fraud. Therefore, this new system should be met with clear and fair trade regulations for consumers as soon as possible.

    4). A new law to protect private information and protecting it from potential abuse over the internet should be introduced.

    The law should address the following:

  • The content needs to correspond with Basic Rule Eight in OECD and EC instructions for the right of claim to free information, a right of correction, limits to collecting information, and penalties for exceeding those limits.
  • This law will apply to public organizations and the private sector.
  • Manual information should be included in this law.
  • 5. Renovation of traffic and transportation regulations

    1). The trucking industry is growing annually, even as the total amount of domestic freight decreases. This has created a general reduction of shipping charges but has also led to a decline in labor conditions.

    This situation must be improved. We are calling for open competition in the industry which will allow both fair price and higher labor standards.

    2). To extend the effective limit for car inspections and road permits, the following should be considered in relation to such inspections:

  • The repair condition of the vehicles
  • The quality of the car
  • Car accident and traffic jam,
  • Noise pollution and other environmental influences.
  • 3). Deregulation of highway speed limits should be considered only in light of the quality of present cars, the smooth stream of the traffic and safety and the environment.

    4). Rules to maintain fair competition are necessary in the information and communication fields. Despite the benefits of competition that deregulation invites, there should be an atmosphere of international harmony which will inspire enterprises to greater creativity and energy despite friendly rivalries.

    6. Observation and inspection systems under deregulation.

    1). It is one of the means of deregulation to inspect obedience to regulations in a single instance. However, administrative rules should require follow-up observations in place of the current system where approval is given before the system is introduced.

    This rule should be clarified with laws and guidelines. Also, the fair trade committee's powers to observe and inspect should be strengthened.

    2). The merits and demerits of the effect of the deregulation, including situations of new industries and effects on employment, should be made open and used as a reference for future renovations of the regulation.


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