RENGO endorsed its 4th Critical Policy for the 2000 Spring Struggle at the 4th Central Struggle Committee on March 9.

1. The Current State of Affairs
Within the overall trend toward economic recovery, we can see a conspicuous contrast between the robust recovery of production and businesses with the slow recovery of consumption and employment. It is now urgent to cut the downward spiral of depression by dissolving anxieties over employment/income/future.

(1)

Actual Employment and Living Conditions Total unemployment in January 2000 remained at a high of 4.7% and despite a slight improvement of 0.50 in the job/worker ratio the situation is still severe. Further, the number of working households showed a 2.5% decline in real income, 1.5% in disposable income, and 3.0% in consumer spending compared with the previous year. Both real and disposable incomes have continued to decline for the 7th consecutive period and this is the 6th consecutive monthly drop in consumer spending.

(2)

Industry and Business Performance The production index for the mining and manufacturing industries increased 0.9% this month for the first time for 2 months. According to manufacturing industry forecasts, the index is estimated to post a gain of 2.3% in January-March over the previous quarter, which would be an increase of 3 consecutive quarters. On the one hand, Nihon Keizai Shinbun, Inc. estimates that the ordinary profits from 1798 listed companies during March 2000 will hit 10.7% for the first time in three years on a quarterly basis. These profits are attributed to increases in information technology (IT) related investments and the recovery of the Asian market. On the other hand, a 4.1% decrease in sales volumes is estimated for three consecutive periods. Increased profits, therefore, owe a lot to the effects of corporate restructuring such as cutbacks in personnel and/or wage freezes.

2.The State of Diet Deliberations

(1)

Budget Deliberations The unusual deadlock resulting from the ruling parties conducting budget deliberations on their own after the three opposition parties refused to participate was broken on February 14 by the "Speaker's Opinion." The budget committee reopened with both the ruling and opposition parties in attendance. A public hearing was held on February 24 after going over the "basic inquiries" and the general inquires. Vice President Kusano from RENGO was in attendance to express his criticism of the government's budget plan. On February 29, at a Plenary meeting of the House of Representatives the government's budget plan was approved with no revisions by a majority of the ruling parties and sent to the House of Councilors. The Budget Committee's specific inquiries were conducted in the House of Councilors on March 1st and 2nd with general inquiries continuing after March 3rd.

(2)

Pension Bill Deliberations Deliberations on the Pension Bill were restarted on February 24, the schedule was delayed because of a protest by the opposition parties against forced committee deliberation in the House of Councilors. RENGO's Welfare Policy Division Head Masumoto was among the witnesses who expounded their statements on February 29. Although scheduled to appear, the Prime Minister missed the March 3rd deliberations. Therefore, there is a great possibility that committee voting will be postponed until after March 9 due to the pursuit of the opposition parties.

(3)

Medical Care Related Bill Deliberations RENGO has been working with other paying organizations such as the National Federation of Health Insurance Societies (KENPOREN) and the Japanese Federation of Employers' Associations (NIKKEIREN), to cutback consulting fees in response to the proposed raise in medical consulting fees (1.9%) in this year's budget. However, the Central Social Insurance Medical Council ignored the paying side's opinions by deciding to report a hike in consulting fees on March 3. Further, the outline of the Health Care Insurance System Revision Bill Package has been introduced in the Diet after the Health Insurance and Welfare Council steering committee and the Advisory Council on Social Security submitted reports in early February. The package includes: introducing a 10% fixed rate on consulting fees when setting a cap for elderly health care insurance, raising expensive medical expenses, revising insurance premium rate caps, and so forth.

(4)

Revision of the Commercial Law and the Worker's Protection Law The Commercial Law Revision Bill of the which enables corporate separation was approved by the Ministry of Justice's Legislative Council on February 22. It is anticipated the Cabinet will make its decision around March 10. On February 10, the Ministry of Labor compiled a report by a study group on labor related laws pertaining to the changing of corporate structures. The Ministry is in the process of preparing a bill that would extend labor contracts during corporate reorganizations/separations. The Democratic Party compiled the gist of the Worker's Protection Law Bill regarding corporate restructuring on February 22 and currently the Party is working on making the general plan.

3. RENGO's Progress
RENGO held its 2000 Spring Struggle Central Pep Rally on March 4. 45,000 participants gathered to work for their common goals of pay hikes, shorter working hours, and employment and policy issues. Each local RENGO also developed their own rallies and actions to tie in with the Central Rally.

(1)

Pay Increase-Based Demand Submissions After the Central Pep Rally declaring the start of the Spring Struggle on February 10, each union began submitting demands simultaneously. According to the results of the 2nd demand summary conducted on March 1st, the number of unions (among RENGO-registered unions) that submitted demands was about equal to last year and the level of demands almost met RENGO's demand standard. The negotiation status summary of all the unit unions as of March 8 shows that out of 12,711 unions (5,405,383 members) which sent back reports, 11,446 unions (5,165,211 members) had finished submitting demands. 878 unions (133,389 members) postponed submitting demands, far above the 401 unions (78,563 members) of a year earlier. Furthermore, among the unions which submitted demands, 4,337 (3,773,307 members) designated a time in March for their replies. This represents 37.9% (58% if excluding unions with no specified dates) of all unions or 73.1% (84.4% as cited above) of the total number of union members.

(2)

Activities to Extend the Period of Employment At this time, many unions within the following affiliated unions have been receiving answers. JIDOSHA SOREN (Confederation of Japan Automobile Workers' Unions) DENKI RENGO (Japanese Electrical Electronic & Information Union) ZENSEN (Japanese Federation of Textile, Garment, Chemical, Mercantile, Food and Allied Industries Workers' Unions) JAM (Japanese Association of Metal, Machinery and Manufacturing Workers) JOHO ROREN (Japan Federation of Telecommunications, Electronic Information and Allied Workers) DENRYOKU SOREN (Confederation of Electric Power Related Industry Workers Union of Japan) CSG RENGO (Japanese Federation of Chemical, Service and General Trade Unions) SHITETSU SOREN (General Federation of Private Railway and Bus Workers' Unions of Japan) SHOGYO ROREN (Japan Federation of Commercial Workers' Unions) JR-RENGO (Japan Railway Trade Unions Confederation) KAMIPA RENGO (Japanese Federation of Pulp and Paper Workers' Unions) ZENDENSEN (All Japan Electric Wire Labour Union) SONPO ROREN (Federation of Non-Life Insurance Workers' Union of Japan) SHOKUHIN ROKYO (Food Industry Workers' Unions Council-FIWUC) SEN-I SEIKATSU ROREN (Japan Federation of Textile Clothing Workers' Unions of Japan) ZENZOSEN-KIKAI (All Japan Shipbuilding and Engineering Union) and others. There are many unions that are still continuing negotiations.

(3)

Activities to Achieve Policies/Systems On February 24, RENGO held an Urgent Pep Rally for Achieving RENGO Goals at Hibiya Open Air Hall in Tokyo with 3800 people. On February 29, 5000 people participated in a RENGO organized sit-in and rally before the Diet and a petition drive with a goal of 10 million-signatures. The drive petitioned for "Safe Pension Reform," "Removal of Individual Medical Care Increases," and "Employment Measures Enforcement." Union affiliates also participated in the signature petition and local RENGO conducted the "action of the month." 5.5 million signatures were collected by March 4 and presented to both the Lower House Speaker and the Upper House President on March 6 to press them into passing the 7 items on the petitions. RENGO also made a request to the Social Democratic Party on March 8 regarding policy/system issues. Meanwhile, RENGO organized a workshop and rally on March 3 for Worker's Protection Law legislation concerning changes in business organization and requested that the New Komeito Party take action on this issue.

4.Efforts in preparation for the Peak Period

(1)

Movement by the Management and Our Response to the Employers Associations Management's retrogressive attitude in negotiations until now has been highlighted by their insistence that "our hands are full maintaining employment. It is all we can do to try maintain wage levels," or "it is essential to restrain the aggregate labor costs to keep global competitiveness," and so forth. One can even see unexpectedly severe backlashes like "revising common labor practices," or "we do not recognize the necessity of base wage raises." These backward attitudes on the part of management are of great concern to RENGO so we are planning to approach to NIKKEIREN on this matter on March 10.

(2)

Securing and Confirming an Equivalent Amount to Regular Pay Increases or enough to Maintain the Wage Scheme There are unions that have already confirmed an amount equivalent to regular pay increases or amounts necessary to maintain the wage scheme. On the other hand however, there are unions receiving proposals with no base wage raise or raises below that of regular increases. Therefore, it is critical to intensify efforts now to secure an amount equivalent to regular pay increases or an amount necessary to maintain the wage scheme at the pre-negotiation period. Affiliate organizations by industry and local RENGO will step up their guidance and support to unions, including those unions with no regular pay raise systems.

(3)

Activities before the Peak Period RENGO and affiliate organizations are considering taking action ether by striking or presenting their case to the Labor Relations Commission as a worst case scenario, given management's stance of no base wage raises or freezing the aggregate sum of labor costs. RENGO and its affiliates will secure regular pay raises or an amount equivalent to regular pay increases through its concerted efforts, and furthermore, "in order to actively pile up a tangible base wage raise," will fortify the joint struggle and vigorously gain ground.

(4)

Fortify Small to Mid-sized Unions Negotiations a)  Small to Mid-sized /local unions will seek to settle their negotiations in March, within the time frame allowed for catching up, that was fixed mainly by local RENGO. b)  Small to Mid-sized Unions Joint Struggle Center will be taken the lead to create agreement standards for the unions that carry over their settlements until after April. They are trying to find better timing and methods of negotiations.

5.Urgent Activities to Realize Policies/Systems Issues

(1)	Stance on the Pension Bill Deliberations Climax Should the committee tries to ram a retrogressive Pension Bill through, RENGO will conduct protest actions to make its wrongfulness known to every citizen.

(2)

Request to hold Government/Labor Meeting RENGO will ask for having Government/Labor meeting in regards to improving labor condition for workers in public sector, strengthening employment measures radically and so forth. Moreover in order to give shape to job creation measures, RENGO will ask for early opening of the Employment Promotion Council of Government/ Labor/ Management.