STATEMENTS

Comments on the government's countermeasures for immediate employment and reinforcing industry's competitive power

June 11, 1999

Kiyoshi SASAMORI
General Secretary
Japanese Trade Union Confederation (JTUC-RENGO)

  1. Today, May 11th, the government-run headquarters for the structural conversion of industries and increase of the employment, headed by the prime minister, announced countermeasures for immediate employment and reinforcement of industry's competitive power.

    The countermeasures will increase the opportunities for employment for more than 700,000 people by creating new businesses through reforming regulations, creating employment in the private sector and with special funds for urgent employment. It will also create temporary opportunities in the public sector.

    Countermeasures to reinforce industry's competitiveness are to choose and concentrate on management of industry structures with dividing or combining enterprises. Although these countermeasures are not good enough to inspire hope, the government also can not be held completely responsible for the severe unemployment situation.

  2. Rengo applauds the fact that government has decided to take countermeasures for the immediate employment by sparking job opportunities in the public sector for the first time. The countermeasures do not work with specific goals of when they will begin, the time they should be allotted, and their budget constraints. Furthermore, the countermeasure for reinforcing the industry's competitive power might bring less job opportunities as it is encouraging the change of the organizations and managing the debt of the major companies. These countermeasures are simply not enough to solve the worst post-war unemployment levels.

  3. The 300,000 temporary public sector jobs is too small a figure to help. Also, these job opportunities should be discussed separately from the job creation. The content emphasizes the commission to NPO and private companies. However, these countermeasures have a time limit of only one or two years and it will not create the opportunities in such fields as welfare, education and environment. Also, changes in the pension system should not be considered.

    The countermeasures for reinforcing industry's competitiveness may bring the downsizing of job opportunities or problems connected with the rescue of the individual industries when the organizations change the structure by dividing or combining or purchasing other companies. The government should make regulations for companies that want to make changes in such organizations, requiring them to discuss them with the labor union, and the related companies or subsidiaries to maintain job security.

    These countermeasures do not show the way to reinvigorate small businesses and support the venture businesses.

  4. Rengo and the Japan Federation of Employers' Associations demand the government activate our plan and create jobs for one million people through measures among government, employer and employee. Rengo requested on June 9th the prime minister take responsibility for creating 1.4 million jobs and solve our worst unemployment situation. The most important thing the government has to do right now is to create a powerful job opportunities for million people and solve unemployment. The government should consider a supplementary budget as soon as possible to spark those job opportunities.

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