RENGO endorsed its 5th Spring Struggle Urgent Plan at the 5th Central Struggle Committee on April 20, stating that "unions who have yet to settle, should use all of their strength and effort to reach settlement in the final stretch in April."

1. Surrounding Conditions

Although the government's monthly economic report pointed out 'a visible move toward autonomous recovery,' there is still nothing to bridge the gap between the 'production/business side' and the 'employment/living standard.' Job conditions have especially become serious now.

(1)Employment/Living Standard Reality
Total unemployment rate marked record high of 4.9% (seasonally adjusted) in February, the highest rate ever since the survey began. Involuntary unemployment was especially high at 1.15 million people, an increase of 190,000 people over the figure for this month last year. An increasing number of small to mid-sized business bankruptcies was believed to have had major influence on this. The effective demand/supply ratio of labor force is 0.52. There is no way of anticipating what the unemployment outlook will be as the number of the newly-graduated unemployed is expected to grow.
Moreover, in February, real incomes in working households dropped 0.9% compared to the same month a year earlier, this is the eighth consecutive monthly decline. Although consumer spending was up 3.8% over last year at this time, the first increase in seven months, most attributed this to the influence of leap year and do not see the increment as a sure sign of recovery. Disposable incomes increased 0% on the year-on-year rate as well. (numbers reflect real growth rate)

(2) Business Confidence/Production Index
According to the Bank of Japan's March TANKAN Survey (Short-term Economic Survey of Principal Enterprises in Japan), the DI (diffusion index: subtracts poorly performing businesses rates with satisfactory ones) for big businesses was -12 (+ 6 last quarter) and -27 in small to mid-sized businesses (+3 last quarter). This shows a slight sign of improvement. Also, February production increased 3.0% compared to the previous month for the second month in a row, bringing the production index to 105.1.

2. Status of Diet Deliberations

The pension-cutting bill deliberation was rammed through the House of Councilors on March 22, and enacted at the Plenary Session of the House of Representatives on March 28.
After that, the Cabinet resigned over Prime Minister Keizo Obuchi's emergency hospitalization. A new Cabinet headed by Yoshiro Mori was formed on April 5 and under his administration, the Employment Insurance Law, Child-support Allowance Amendment and other laws were passed. Following that, deliberations are scheduled to begin on revision of the Commercial Law to enable corporate splits, the Workers' Protection Law for business organizational changes, the Health Insurance Law Amendment, and the Circulatory Society Basic Law. Also preparation of legislation of banning union dues check-off by the Liberal Democratic Party is in progress.

3. Progress of RENGO Activity

(1) The Ongoing Conditions of Negotiations Focusing on Pay Hikes
According to the First Pay Increase Settlements Summary on April 17, pay hikes for registered RENGO unions was ¥479 (0.15% increase). This excludes regular pay increases for 35 year-old workers by "Individual Method A," or ¥6083 (1.95 % increase) by the "Average Method (including regular pay increases)." Overall, this is below last year's earnings, ¥484 lower than the year-on-year rate of the "Average Method." However, businesses with less than 300 workers made a good showing at this stage of ¥4729 (1.76% increase), which is only ¥166 lower (decreased 0.08 point) than last year.
The Small to Mid-sized/Local Unions Summary by the Small to Mid-sized Unions Joint Struggle Center on April 17, stated that the average pay increase for local unions of every size was ¥5225 (1.95% increase) including regular increases, which were ¥316 less than the previous year (minus 0.14 points). Of that number, unions with under 100 workers showed an increase of ¥3838 (1.66%) which remained ¥263 lower than last year (minus 0.11 points).
Furthermore, according to the Settlement Progress Survey from RENGO's private sector unions, 3367 unions (30.5%) which include about 3.87 million unionists (75.7%), had drawn encouraging responses that would lead to settlements by the end of March. There was a small increase of 3312 unions (29.1%) compared to the same period last year.

(2) Activities for the Settlement Promoting Period
During its 7th Expanded Tactical Committee on March 23, RENGO made a mid-term evaluation of negotiations during 'intensive response period.' At the same time, RENGO endorsed the following two items for unions whose negotiation periods would peak after that. 1) After securing regular pay increases or amounts equivalent to regular increases, and with a strong determination to see positive results, we intensified our 'struggle to secure a solid base wage raise.' 2) Make a last stand with an indomitable resolve that will never allow anything lower level than the settlement standard as stipulated by the Small to Mid-sized Unions Joint Struggle Center.
Taking those endorsements, on April 3rd the Small to Mid-sized Labor Activities Committee endorsed that it would; (a)Place prime importance on maintaining the wage structure, securing last year's achievements.(b)¥3000 would be the minimum standard of agreement even for the unions struggling in especially severe conditions.
In an effort to promote settlements for unresolved unions, RENGO endorsed an appeal to "secure regular pay increases or equivalent amounts," examine settlement standards, and intensify struggles during the settlement negotiations period, at its 8th Expanded Tactical Committee on April 7. RENGO also harangued unresolved unions at the committee.
Also on April 7, the Small to Mid-sized Unions Joint Struggle Center held a "General Pep Rally for Settlement Promotion" to make the settlement standard known to all. (Eighteen local RENGO have set local minimum standards.)

(3) Movements of the Public Sector Working Group
On April 14, managing authorities in government enterprises indicated to each union that there would be a low basic wage increase of ¥130 (0.04%).
The Public Sector Working Group of RENGO's Public Sector Liaison Office immediately filed a petition with the Central Labor Relations Commission of the Ministry of Labor to mediate between managing government authorities and public sector unions.
Prior to this on April 10, labor and government held negotiations on the wage/labor conditions of public sector workers. A representative for RENGO's Public Sector Working Group asked Chief Cabinet Secretary Aoki for an "early positive answer (pay increase) for public enterprises and that the National Personnel Authority's Advisory System be maintained and respected."