The 27nd Central Executive Committee Meeting
Easy raising of premium should not be acceptable.
RENGO adds to its basic position on the pension reform
(27 August 1999)

At the 26th Central Executive Committee held on 15 July 1999, RENGO introduced a proposal for an action policy about reconsidering the employment insurance system, which had been examined at the Central Employment Security Council. Later, RENGO proceeded with the internal discussion and then introduced the revised proposal at the 27th Central Executive Committee on 19 August 1999.

The following is points that are added to the proposal presented on 15 July:
(1) The level of an unemployment allowance from the age 60 to 64 should remain unchanged and should not be discriminated by reason of unemployment.
(2) Easy raising of premium should not be acceptable.
(3) Employment insurance should be applied to registered dispatched workers.
(4) A measure should be taken to guarantee income for those on child-rearing and caring leaves.

RENGO's Demand Plan for Rectification of the Employment Insurance System and ensuring its Stable Management
(19 August 1999)

(Texts added to the original proposed to the 26th Central Executive Committee, 15 July 1999, are underlined.)

1. Drastic fortification of support measures for placement of the unemployed and skill development programme
(1) Fortification of support measures for placement to the unemployed people
a) Relax application standards for the nationwide extension of the employment insurance provision (article 27) and extend the provision period to 90 days.
b) Extend the vocational training provision period (generally 90 days) to 12 months.
c) Allow "pecuniary aid for promoting employment" in the employment measures law for 150 days equally to all qualified participants in the Employment Insurance provision.
(2) Drastic fortification of skill development programme
a) Drastically fortify skill development programmes for white-collared workers including enforcement of "ability garden method" training nationwide.
b) Establish vocational programmes for unemployed college graduates.
c) Enforce support measures for programmes conducted by labor/management organizations for the jobs in new technologies.
(3) The level of an unemployment allowance from the age 60 to 64 should remain unchanged and should not be discriminated by reason of unemployment.
a) Taking into consideration the comparatively high unemployment rate and difficult job-hunting situation among those of advanced age, the level of allowance should remain the same both in amount and length.
b) No matter what is the reason of becoming unemployed, the level of allowance should remain the same. In the current system, the distinction between non-voluntary and voluntary in becoming unemployed and furthermore the period of providing allowance is limited for those who have become unemployed voluntarily. In this context, the current system does not comply with non-discriminatory principle of social security.

2. Maintenance and expansion of the employment adjustment grant system and improvement of requirements for the joining and payment of employment insurance
(1) Maintenance and expansion of the employment adjustment grant system
a) From the point of transformation of industrial structure, the Employment Adjustment Grant is one of the most promising of recent support measures. It directly effects employment stability and security while functioning to maintain business activities and support the transformation of businesses. Seen in this light, RENGO seeks to maintain a system that helps to stabilize the employment system and demands new expansion in order to let the tertiary industry also become eligible for the Employment Adjustment Grant through the revision of application standards.
b) Streamline and relax the formal requirements on the premise that the current eligible applicants in the Employment Adjustment Grant are maintained. At the same time, improve the system by increasing support and guidance to enable applications in regional industries and industrial park groups so that small to mid-sized businesses can easily conduct educational training.
c) Maintain the current grant rate. Regarding special measures such as increasing grant rates, the current rate will be sustained until the employment situation improves.
(2) Improvement of requirements for the joining and payment of employment insurance (premium rate and government liability) and Improvement of Benefits.
Complete items 1-4 in order to revise the insurance rate. Study revising the rate only if after sufficient effort has been made.
a) Easy raising of premium should not be acceptable.
Even though the premium is increased based on the revision of Article 12(4) of the Collection Law, easy raising of premium is unacceptable. Premium should not exceed 11.0 per thousandth of the current rate. If the increment is really necessary, the portion covered by the National Treasury should be first changed to one fourth.
b) Requirements etc. in Joining Employment Insurance
- Requirements for the joining the Employment Insurance and its benefit conditions, must consider the increase of short-term employment contractors as per revisions in the Dispatched Workers Law. Relax application standards such as i) over 6 months and within 12 months of latest insured period, ii) more than 20 hours work per week c) more than 900,000 of income, and help short-shift workers and registered dispatch workers to join insurance. In particular, Employment insurance should be applied to registered dispatched workers, which should be realized speedily following the supplementary resolution adopted by the House of Councilors at the previous Diet session.
- Clarify measures and penalties to dispose of all applicable irregular uninsured businesses so that they may secure revenue sources.
c) Secure and expand revenue sources for employment measures
Secure revenue sources from the general account etc., and make it possible to stabilize living standards and skill training while seeking jobs in order to set up adequate job-hunting activities and conditions for uninsured people including unemployed new graduates and ex-self-employed workers.
    d) Income guarantee for those on maternity/caring leaves
A measure should be taken to guarantee 60% of the previous earnings for those on child-rearing and caring leaves.

3. Improvement in relaxing requirements regarding tertiary businesses
(1) Study New Adaptation for Tertiary Business Discuss the position of the tertiary businesses based on the present conditions of changing employment and the labor environment. Examine the expansion of benefits and new measures that would link up with the stabilization and maintenance of employment, such as consolidation of the current grant system.
(2) Introduction of Government Subsidies
Create government subsidies necessary for the Employment Adjustment Grant's provision until the employment climate improves.



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