At its 16th Central Executive Committee Meeting held on November 16, RENGO endorsed its " RENGO Stance and Policies on Employment Measures for Structural Change in Japan and Benefit Revision for Employment Security Projects." It shows RENGO's resolve on measures for the increasing labor flow that it is indispensable not only to enforce adjustment of the supply and demand of labor but also to provide a sturdy safety net for employment.

Since last September, The Labor Ministry's Central Employment Safety Council has been conducting discussions on the basic concepts of how to maintain related systems for employment policy promotion that correspond to structural changes in the economy and industry. It has also discussed the direction of benefits reduction/rationalization from three programs within the employment insurance system (employment stabilization, job skill development, and employment welfare). Discussions are now approaching their final phase and will be compiled into a proposition to be submitted to the Labor Minister in November.

1. Points Raised to Wrap up the Discussion

The following issues will become important in the future to maintain employment security in the long term as the flow of labor increases and the supply and demand for labor creates a growing mismatch in the process of economic and industrial structure change. It is necessary to (1) maintain and secure employment and (2) bring about a "flow of labor without unemployment," (3) create healthy job opportunities, (4) encourage self-motivated career building by individual workers.
Discussions are setting the tone for employment policies that will fortify the adjustment of the supply and demand of labor and encourage support through measures that bring about a "smooth labor flow."

In accordance with these concepts, The Ministry of Labor will conduct a consolidation and the rationalization of compound and multiple benefits in three employment insurance programs and clarify the basic concept and responsibilities of affiliated parties in the form of specific statutes. A significant feature of these discussions is that business owners will be responsible for systematically helping find jobs for workers whom they fired, and should support measures that keep such practices in place.

So far, support measures to encourage the flow of labor with subsidies has basically been limited to certain particularly stagnated kinds of businesses, with the exception of certain time restricted actions as emergency employment measures. However, in the future it is planned that such support measures will develop into a fundamental feature for every business.
At the same time, the employment adjustment stipend previously awarded by business and/or region, will be conventionalized and clear away the limitations of businesses so it may be applied in the workplace.
In this case, the employment adjustment stipend will be specially used as a support measure to maintain employment. It will provide stipend support for the temporary suspension of work for business owners who are constrained to drastically reduce their business activities.

2. RENGO's Basic Stance on Creating Measures to Keep Up with Economic and Industrial Structural Change

RENGO finds that changes in industrial structure, rapidity in technology innovation, and so forth will make a higher labor turnover unavoidable in 21st century. After every effort has been made to extensively support career building, and management has made significant effort to prevent dismissals, and downsizing is still unavoidable, then support for "labor flow without unemployment" becomes critical and requires study.
However, although labor mobility is expected to increase in the future, long-term employment is still the norm for the foreseeable future. People must realize that relying only on an outsourced, or a fluctuating labor market, to find someone already qualified is unsustainable in the mid-to-long term because building skills is heavily based on long-term employment. Although enforcing the adjustment of the supply and demand of labor would mean correcting a mismatch, the top-priority throughout our entire labor policy is still the support of long-term career-building and the realization of employment stabilization. We must maintain measures that back-up these priorities.

RENGO is not opposed to raising support to assist extensive self-motivated career building by individual workers or to supporting labor flow without unemployment. RENGO realizes that stimulating an adjustment of the supply and demand of labor and granting support to workers in transition is important, but beefing-up employment-related safety nets in response to labor flow increments is an indispensable prerequisite. When one recognizes the expanding the flow of employment is a basic fact, the following matters must be established as early as possible as labor policies. Establish secure opportunities to build individual careers and vocational training, a job ability assessment scheme for fair treatment and stable living standards when changing jobs, social rules in the dismissal procedure to protect against easy dismissal, and work-rules against unfair discrimination by job type.

Particularly, there is a problem with the systematic support for re-employment on the part of business owners which has been introduced as a measure to realize "smooth labor flow" in the discussion. The problem is that any restraints against easy dismissal are not clear when turnover support measures are changed into a general support measure based solely on the business owners' convenience. It is necessary to clarify the position of and legislate planned support measures for re-employment by business owners. This is a turnover support measure for unavoidable personnel downsizing, only after it is ascertained that management has made every effort to avoid dismissal in accordance with the four dismissal principles.

At the same time, it is crucial to fortify measures like supplementing public vocational training, reinforcing skill development support that entrusts the private sector with some responsibility, for the benefit of people who confronted industrial structural change and had to leave their jobs. Further, while seeking sound employment in the entire labor market in society, it is also important to study from a social standpoint the career building and the utilization of job ability assessment scheme, both of which form the base of employment stability.

3. RENGO's Stance on the Consolidation and Rationalization of Three Employment Insurance Services' Benefits

The following items have been presented in the field of employment stability measures associated with the review of three employment insurance services benefits. Consolidating numerous benefits are planned to be carried out based on the following issues:(1) Stipends to maintain employment (from generalization of employment measures by business type to one not stipulated by business type that responds to temporary economic fluctuations) (2) Stipends to support labor flow without unemployment (support for the business owners who systematically support re-employment ahead of time for those leaving their jobs), (3) Aid for the creation of job opportunities (helping small to mid-sized businesses and local activities), and (4) Stipends to aid job ability development (support owners who promote the activities of individual workers to build their careers).
A characteristic of the discussion is that the employment maintenance and labor turnover support, both of which have been conducted within the framework of each business, are planned to be developed as a general measure based on business owners' plans in principle.
This is meant to prepare a framework of employment measures that correspond to mid-term structural changes. Yet, one big problem is that the current situation surrounding employment measures is unclear (especially with regard to how they will characterize the employment development stipend for designated job applicants as a back-up stipend, benefit period, the handling of interim measures, etc.).

RENGO's judgement and response to each of the main issues by field follow:

(1)Review of Labor Flow Stipends

Clarify planned support measures for re-employment as a turnover support measure in case of unavoidable personnel downsizing, only after management has made every effort to avoid dismissal, and see that they also be clarified in legislation. Further, make sure to spell out in a planned proposal the events leading up to inevitable dismissal, the consent of the labor union (majority representative), the worker's own opinion, and so forth. RENGO will seek support measures to ensure that their contents efficiently link up to re-employment.

(2)Review of Employment Adjustment Stipends

(1) RENGO finds that the course of generalization by breaking off designations by business type is valuable as it will expand the application scope to those who have hardly ever received service. But, RENGO will request that a new handling measure take the place of the designations by business type so that advantages like industry support for entitlement procedures will still be restored. Also, since specific application requirements are not yet clarified, RENGO will request that an objective standard be established. Furthermore, RENGO will work on the following two important issues; making everybody aware that generalization will profit labor unions and management who are beset with employment problems, and preparing support for the individual business owners including aid for specified application.

(2) Regarding the service of an employment adjustment stipend for designated stagnated businesses, designated businesses in employment adjustment and others, RENGO will demand measures based on actual conditions upon review to see whether or not they need continuous attention based on a prehistory of interim measures.

(3)Revision of the Employment Development Stipends for Designated Job Applicants

There are plans in the discussions to simplify the nature of support for hiring people having difficulty finding jobs. They are politically planning to aid to those in need of re-employment support based on employment conditions at that time, however they have not fully acknowledged the severity of the ongoing employment crisis, and have no clear standard for giving aid. So, RENGO will demand that a standard and services be established in the light of those over 40 who are particularly suffering in these severe job conditions. Also, considering that actual misallocation of benefit periods and benefit rates is expanding in this age-group under the economic/industrial structural transformation, RENGO will seek a framework that supports management's efforts to link to concrete re-employment.

(4)Revision of Employment Creation Stipend that Focuses on Local Specificity and Identity

When making plans at local levels, it is necessary to establish a framework which will be a source of effective activities reflecting not only the association among prefectures but also the opinions from local labor unions and management. Regular achievement verification is necessary. It is also vital to provide information so that highly effective activities can be aggressively developed nationwide. RENGO will see that these measures be taken.

(5)Revision of Stipend Rates, Etc.

Revision of the stipend rates has been raised in the discussion along with the consolidation of various benefits. Instead of giving priority to financial conditions of the three programs within the employment insurance system, seek specific revisions while emphasizing the significance of the original function of truly necessary support measures and systems.

(6)Revision of Measures by Business

Realize that supporting employment stability for industries and businesses facing structural adjustment or change because of historical or other reasons has played a significant role in secure employment and the promotion of smooth labor turnover. And seek for guidance so that the application of new measures will not expand employment anxieties, when breaking down the wall of businesses, or in other words, generalization.

4. RENGO's Efforts for Coordinating Proposal

Make an effort to coordinate proposals to the Labor Minister based on the above judgements and measures, keeping in close cooperation with labor members in the Central Employment Safety Council. While working on it, make sure that prioritizing labor flow support does not mean promoting dismissals or cutbacks. If not accepted, RENGO will deal with them determined to oppose coordinating as a proposal.