STATEMENTS

A comment to the report of the Labour Issues Study Committee, Nikkeiren

January 12, 2000

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

  1. This year's report of the Labour Issues Study Committee advocates "a market economy with a human face" as a social principle for the 21st century. It warns against "excessive financial speculation" and the "unregulated free market". At the same time, it emphasises enterprise management based on "respect for human beings" and "a long-term vision".

    The report mentions that the maintenance and creation of employment is the biggest responsibility of employers. It says that the Japanese management policy should be adhered to as in the past, which sets the human being as the base of organisation management and has been developed for human welfare and growth. It also emphasises the needs to train workers in the manufacturing sector for the long-term, since the human resource is the most important resource.

    The above points are mostly in line with RENGO's basic policies. I appreciate that these principles were raised clearly at the start of the spring offensive.

    However, restructuring of employment has already taken place. I want the committee to grasp the situation and provide stronger leadership.

  2. The idea of how to do this in concrete terms has never been changed. For stability of employment, it says that it is a precondition to improve competitive power of enterprises and to rectify the high cost structure of state and private enterprises. Therefore, it can not help but to reduce the total labour costs. Particularly, it proposes boldly that measures should be examined to share the pain between labour and management not only at the level of wages but also through the wage system, retirement payment, pensions, and work sharing scheme, this coming spring offensive.

    As for wage increases, their stance is to suppress them as same as in the past. The report says that "it is required to take a very cautious stance concerning wage increases broadly against the background of no improvement in productivity," and "individual companies increasingly have difficulties to pay, and in fact quite a few have no choice but to cut the wages."

  3. What is noticeable in this report is that it suggests "flexible work sharing" through "a diversification of employment "as a means of restraining labour costs. It says, "we can not anymore respond to the maintenance and the creation of employment simply by choosing, either wage increases or employment.

    In concrete terms, the report raises 1) wage cut combined with shortening of working hours, 2) transfer to the hourly wage system wherever possible to control actual hours worked. Rengo argued repeatedly that without "the principle of equal treatment" which exists in the Netherlands, for example, it is not possible to provide "an appropriate opportunity for employment" as Nikkeiren described. It is easily predicted that employment would be polarised not diversified.

    As Nikkeiren itself pointed out, it is important to achieve "improvement in workers' quality of life" and "stability of employment". It is not possible to practice "a work sharing scheme" without the establishment and observation of working rules. It should be given a priority to remove overtime which is not claimed and to reduce overtime, which would lead to the maintenance and expansion of employment.

  4. What is characteristic in this report compared to the last year's one, it lacks suggestions for the "expansion of domestic demand" or "an increase in disposable income", which are essential measures for "business recovery and employment stability" although these are advocated in the report. Inside the report a table shows the vicious circle between uncertainty of employment and income, consumption decline and decline in domestic demand, however, there was no reference to this in the text itself.

    As for anti-cyclical measures, it is a demand merely for the government and it does not make employers responsible for such measures through improvement in disposable income.

    The management strategy, which aims at strengthening competition through cost retrenchment has already reached its limit. When we advocate the management method which "respects human beings" and, which is based on "a long-term view", we should take a positive position toward "stability in employment and improvement in workers' quality of life" We do not have any more concern about inflation. It is the time for us to part from a theory of wage control which is based on a principle of productivity standard.

    RENGO will thrust aside this theory of wage hike suppression, and it will breakthrough crises in employment and life and will create the future recovery of the Japanese economy.

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