Spring Struggle Summary 99
(2 July 1999)

During the 1999 Spring Struggle we did our utmost against the unprecedented conditions of two consecutive years of negative economic growth and management attitudes that clearly disrespect "employment/personnel system respectful of human life and dignity." This labor/management relationship is what both camps have become accustomed to for many years. For labor unions and workers, it was a crucial moment that was symbolized by the phrase "unions must take a stand now!" The 1999 Spring Struggle offered a way out of these clogged conditions, but it was also an chance to fulfill our four-point demands for pay raises, shorter working hours, the improvement of policies/systems, and the stabilization of employment and establishment of fair working rules to "reinvigorate Japan."
Yet, the 1999 Spring Struggle turned in a record low settlement amidst the current "employment/standard of living crisis." Some unions were placed under conditions that compelled them to either entirely abandon or delay the settlement of labor/management negotiations.
Policy issues continue to be debated at the extended 145th Ordinary Diet Session as does lobbying. Given the severe circumstances, RENGO discussed the conclusion draft at various committees and organizations in order to summarize the 1999 Spring Struggle and link up with future activities, and asked constituent organizations and local RENGO to discuss organizational issues after the 24th Central Struggle Committee on May 20.
Therefore, we will now conduct the "Spring Struggle Summary 99" and disband RENGO's general 1999 Spring Struggle position on the premise that any unresolved issues shall be carried over to other struggles such as policy fulfilling, minimum wage and the small to mid-sized joint struggles.


Results, Evaluations, and Assignments

1. Wage Activities

(1) Demands and Settlements

  1. March 26 was the last day of one of the peak periods for the wage hike settlements. Approximately 1,130,000 people from 219 unions received answers through Individual Wage Methods (partially overlap with the Average Wage Increase Method) and approximately 1,520,000 people from 480 unions received answers by Average Wage Increase Methods. 2,940,000 workers from 1,131 unions reportedly handed out their demands through approximately 1,400 RENGO registered unions/3,100,000 union members. The number of unions reaching settlements decreased this year, as many unions, including the major unions, faced inordinate difficulties.
  2. A policy settlement in March and a promotion to reach settlements in early April drew answers that lagged behind the pace of settlements compared to this time last year. Approximately 1,280,000 people from 289 unions (partial overlap) through Individual Wage Method, 1,660,000 people from 611 unions by Average Increase Method out of 2,770,000 people from 1,228 unions which RENGO could get at their demands among the registered unions.
  3. As of April 21, the settlement of about 100 unions lagged behind the previous year according to the 1st Wage Hike Settlement Summary. There were many reports from constituent organizations that settlement in non-registered unions was also delayed.
  4. As of May 12, settlement in registered unions continued at about the same pace as in the previous year according to the 2nd Wage Hike Settlement Summary. However, in the general survey (5,200,000 workers/12,200 unions) which includes non-registered unions, just under 40% of unions submitting demands were still not settled. Unions that could not submit demands numbered 760 (6.2%). RENGO even received reports from some constituent organizations forced to give up wage hike settlements, switched over to an all-year struggle emphasizing management measures or securing employment.
  5. The final wage hike settlement summary as noted elsewhere.
  6. Meanwhile, RENGO began displaying its policy on bonuses this year. There was an increase in the number of unions that responded to bonus demands and received answers on a blanket annual agreement at the same time as wage revision settlements (specifically, the increase amounted to approximately 500,000 union members). The level, however, dropped 0.35 months or about \100,000 down from last year.
  7. Starting salary and minimum wage agreement revisions amounting to a 0.28% to 0.44% increase in basic wages.

(2) Evaluation and Assignment

1. Demands
(a) Grounds for demanding pay increases
    *The demand was formed when economic growth and price increase rates were believed to be at zero or negative growth. RENGO decided that a "base wage raise of more than 1%" was the lowest possible rate. It arrived at this number from comprehensive consideration of the necessity of improving living standards, stimulating consumption by increasing income to improve the macro-economy, and distribution patterns along with deteriorating business and a general sense of insecurity over employment.
(b) Forming/articulating demands. Promoting Individual Wage Levels distributed by Industry
   

*RENGO has been "putting stress on raising base wages and transferring to an Individual Wage method" based on RENGO wage policies to promote demands and facilitate negotiations, while maintaining the current wage system and levels. Meanwhile, RENGO changed how it displays its demands for further promotion because of the underlying attitude in management that tries to curb costs with no rules. For instance, NIKKEIREN (The Japan Federation of Employers' Associations) claims to have cut base wages and the management denied a regular pay raise system during labor/management negotiations so influential in forming wage scale standards for pay hikes.

*The current seniority wage curve gained by labor/management negotiations is an agreement and a concurrent system. RENGO emphasized setting the base wage increase, excluding regular pay increases, because it wanted negotiations to continue on the premise of maintaining the wage curve.

*Furthermore, since the regular pay level increase depends on realities, real figures were adopted for the regular pay increase and the wage curve. RENGO set the level as 2% in that there are unions where the regular pay hike level is unidentified or unions with lower level than the real figures.

*RENGO set the new goal at a minimum level of (\250,000 for a 35 year old skilled worker) and by age in order to promote traverse of industries by wage standards and to raise the minimum wage level.

2. Struggle Tactics and the Level of Answers
  (a)  As pay hike summaries show, circumstances around settlements in the private sector are polarizing. Many of the major unions and those that began the pay hike struggle earlier in each constituent organization have succeeded to work along RENGO principles or the endorsed matters, although the level of answers they received was low. On the other hand, many mainly small to mid-sized unions fell into unprecedented circumstances never having occurred before in a Spring Struggle. Each constituent organization, although in a bad situation as not to be able to form their demands, still pushed to organize spring negotiations and worked to endorse items such as the examination of managing principles or responsibilities. However, about 40% of the unions which lagged their settlement into April, mainly small to mid-sized unions but also including some major and middle-ranking unions, have not settled, or even given up settlement even at this point. This number includes unions that did not submit demands. Employment adjustments such as business downsizing were significant obstacles for some unions to accomplish their demands. There were unions that could not escape stifling situations due to unilateral "wage freezes" by the management, "wage cuts," and "reductions in annual pay including bonuses" affecting one's ability to make a living.
We should see the 1999 Spring Struggle as "polarized" or "bottomless." Its description will be divided into the situation of registered unions or those unions that advanced the pay-hike struggle earlier, and of those unions not fitting into the above category.
  <Registered/advanced unions>
  (b) Management proposed unacceptable counter proposals such as "wage system revisions, revamping pension systems, and substantial downsizing" to curb gross expenditures in labor costs in order to increase competitiveness. RENGO confirmed that it was the responsibility of each constituent organization to deal responsibly to demands for wage level increases and unacceptable counter proposals from management. RENGO pushed forward with negotiations against management's attitudes fully "prepared for the worst case scenario for labor/management relations."
  (c) On the content of the answers, RENGO rejected management's severe stance on "Base Wage Freezes and Reductions" and kept the minimum wage from declining further. However, considering the level of the demand, the greatest limit possible to improve the macro-economy given the realities of the micro-economic business and the anticipation of union members in the workplace, their answers were insufficient. Yet, difficult situations still exist even among registered unions, such as those negotiating for settlements including bonus levels, and are delayed compared to last year. We must seriously extend our efforts.
  <The Whole>
  (d) Some late settlement cases are due to the business depression caused by the rationalization by parent companies. Yet even profitable companies attempt practices such as "wage reductions" or "rehiring after cutting labor conditions by firing everyone," to cut labor-costs unilaterally as if they were a fluctuating cost, and not controlling the gross personnel cost.
We saw some labor/management negotiation cases where there were attempts to break down the current wage/welfare system, which accumulated on the labor/management relationship, not admitting those values. These are attempts to "put pressure on to stay competitive" rather than "considering labor/management relationship" or "management that maintain human respect." It is an indisputable attempt to "cut costs at any expense."
Business manager's attitudes were clearly revealed during the 1999 Spring Struggle negotiations. They sought uncontested unilateral freedom, parroted the assertions of employers' associations and the actions of parents/major companies, or used them as an excuse.
  (e) Unsettled negotiations including relinquishments have risen to 40% at the present time. The pay increase level and the bonus cut consequently caused a reduction in annual incomes at the unions that typically draw answers. Our demands are the "improvement of the condition of workers in employment/standard of living crises" and "expansion of consumption/upturn of macro-economy by income increase," the level of answers to them was unsatisfactory. Equally unsatisfactory was the role that the organized workers played in "making a wage standard" in order to influence unorganized unions. RENGO must promote settlements and advance management/employment measures for the future, while continuing to work vigorously to revise the legal minimum wage in order to raise the wages of workers in public sector or in unorganized unions.
3. Correcting Differentials
(a) The gap between major unions and small to mid-sized unions widened during this year's struggle, although measures to prevent this were taken last year. Small to mid-sized unions that transferred to the individual wage method, however, did not experience a widening in the gap as the establishment of a wage system or a wage curves were ensured.
(b) Because of certain characteristics in wage systems in certain industries, some mainly small to mid-sized unions, only received slight increases if they used RENGO's minimum standard rate of "Regular Pay Raise (%) plus Alpha (\)." RENGO set the rate at 2% corresponding to regular increases but it was ineffective.
  (c) It is clear that the widening differentials' gap is not only determined by pay hike methods or the wage system itself, but also problems obstructing the improvement of working conditions. For example, decisions on transaction unit rates caused by problems in trading or cost sharing/profit allocations, reductions or halts in business this year, business projections based on new accounting standards for joint budgets, and requests from banking institutions to cut labor costs.
There is a keen demand for the strengthening and operation of social rule to secure fair business and close cooperation with major and small to mid-sized unions beyond industrial constituent organizations. Further, it is necessary to strengthen management measures that can closely monitor business performance so that eventually business can be managed independently and guard against unfair dismissals and phony bankruptcies as excuses for under performance in business.
4. Individual Wage Levels and Information Disclosures, Expanding Wage Scale Standards
  (a) Labor/Management agreement stresses allocation negotiation and begins from the confirmation of the allocation results. The result (wage level achieved and base wage raise) is disclosed in and out of the organization for comparison, related to wage scale standard expansion. For instance, a base wage increase of 0.25% presented by the state-run business committee is based on the private sector rate becoming 2.19 % when combined with the regular wage raise rate.
  (b) Unlike the days of high economic growth when base wage increases, other than regular pay raises, were large, one cannot be sure whether the base wage was raised or not unless one a portion of a wage curve or a regular pay raise is strictly defined. Because regular pay raise rates differ according to each union's own wage curve or labor structure, they cannot be calculated in certain unions. Even RENGO has not clearly established which wage system is preferable. RENGO and constituent organizations need to give more support these unions in the future and the wage system of union officials also needs to be studied.
  (c) In this transitional period when unions with unimproved wage systems still exist, we will continue to study how to form wage scale standards during wage negotiations in the private sector and create new guidelines. Topics that would be studied include for instance, how best to provide information other than base wage raises or achieved wage levels and show how to indicate the minimum wage levels.

2. Shortening Working Hours/Establishment of Systems

(1) Demands and Settlements

  1. Among the registered unions, 91 demanded reductions in working hours and 12 unions succeeded in drawing a reply. According to a survey (based on a rate of 100% = 7235 unions), 1320 unions demanded shorter working hours (18.2%) and 224 unions (17%) received responses.
  2. In the survey, 36 unions demanded confirmation of a plan to shorten working hours by labor/management. Its goal is to reach 1800 working hours annually an issue which RENGO placed importance on. 16 unions have received replies.
  3. The revised Labor Standard Act and others took effect on April 1, 1999. At this time, RENGO pushed related issues such as creating a gender-equal framework, measures to protect against extreme change, and relief measures for late-night women's labor. RENGO will keep track of the situation through surveys in and out of organizations. RENGO is currently taking action against businesses violating the 40-hour workweek on behalf of the Daiichi Jidosha Gakko (the First Driving School) in Iwate in the courts.
  4. The National Holiday Act that established Mondays as a substitute holiday was revised to create the viability of three-day holidays on Adult day on January 15 and Sports day on October 10 from the year 2000. RENGO plans to popularize consecutive holidays though labor/management agreements.

(2) Evaluations and Assignments

  1. RENGO's original purpose for implementing a working hour reduction was to create a more relaxed society. Further, for this year's Spring Struggle, RENGO particularly emphasized "in the light of the worst unemployment situation ever, RENGO recognizes the importance of reducing working hours that will link up with an increase in jobs." But the number of demands and responses declined compared to years past. This in part, was due to the overall severe economic conditions.
  2. Including the next fiscal year, RENGO has only two more years to reach its goal of an "1800 hour work-year by 2000." According to the 1998 RENGO Working Hour Survey, an average full-time worker works 1983 hours a year, a shift workers work 1982 hours. As the conclusion last year, RENGO will again try to achieve its goal in the future by working on year-round issues such as reducing regular working hours, cutting overtime and promoting the taking of paid leaves.
  3. RENGO tries to agree on attaching meaning to issues such as increasing employment by reducing "unpaid overtime" or overtime work as shown in the replies to questionnaires in the 1998 RENGO Survey on the True State of Living Conditions.
  4. In order to establish new systems such as those introduced by laws like the revised Labor Standard Act, RENGO will step up its awareness raising activities in the workplace.

3. Establishment of Stable Employment/Fair Working Rules

(1) Efforts to Revise Labor Agreements and Responses to Labor Legislation Revisions

1. Demands to Revise Labor Agreements
  (a) 394 unions received labor agreement revisions for the Revised Labor Standard Act and Amended Equal Employment Opportunity Law. 254 unions received the introduction of preventative measures against sexual harassment. 117 unions received improved agreements on the issues of female workers' wages and treatment. 304 unions received improved Child Care Leave. 250 unions received the introduction of Nursing Care Leave and 193 unions decided to continue hiring workers in their 60s.
2. Evaluation of Revising Agreement
  (a) Although the number of demands reported to RENGO was small, we estimate that revision of labor agreement/rule in response to revised labor legislation was done in every union/company under RENGO. In the future, RENGO will work to examine compliance with those agreements introduced in unorganized workplaces in synergy with the third Intensive Action of Organizational Expansion in June.

(2) Labor Legislation Revision (Dispatched Labor Law, Job Security Law etc.)

1. For a substantial amendment of the Dispatched Labor Law
  (a) For the unitary demands that the three opposition parties agreed to, RENGO requested that the parties again adopt a plan "to prohibit registered dispatchment" on newly planned temporary dispatched labor. In consideration of the effort of the three opposition parties to revise the bill and the deliberation in the Diet, RENGO held mass protest rallies other than sit-ins outside the Diet to achieve its demands. The final results will be reported after the 145th ordinary Diet session.
2. For other labor legislation
  (a)   The Amended Industrial Safety and Health Law was approved at the primary session of the House of Councilors on May 14. As the main points and details will be left to the ordinances to clarify, RENGO will work on influencing the Central Labor Standard Committee ensuring efficacy of the Law with supplementary resolution and replies to the Diet. RENGO will seek revision of the draft by the Ministry of Justice at the Legislative Committee for improvement of labor credit ascendancy and the revision of the reconstruction-oriented Bankruptcy Bill Package. RENGO will report on this along with other labor legislation revisions after the end of the ordinary Diet session.

(3) Measures regarding the Creation of Employment/Unemployment 

  1. At future employment measure-related meetings, RENGO will demand clarification of the "770,000 Job Increase" included in the Government's employment plan, and how that plan will harmonize with RENGO's "Million Job Creation" plan. At the same time, RENGO will continue to demand that the Government attain RENGO's concrete goal for the creation of one million jobs in its "Demands and Proposals" to increase jobs in future fiscal years. As a part of the "Break the Employment /Living Standard Crisis," RENGO will make effort to realize its "Employment Security Announcement," "Employment Creation Plan" on a local level. Furthermore, RENGO held a national meeting of employment officials on May 28, and discussed concrete examples of local activities and made a unified response for the Ministry of Labor's bloc meeting. RENGO will push ahead with this issue for further results. A report on employment generating activities will be compiled separately. (See "For the Million Job Creation" vol.2.)


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