RENGO endorsed its policy on 2001 minimum wage activities at the 19th Central Executive Committee Meeting held on February 8. This policy includes local RENGO's efforts to form their demands taking "hourly wages" into consideration, to move toward unifying how minimum wages are indicated by region.

Introduction
(1) Local RENGO will work this fiscal year again to demand local minimum wage revision individually, referring to organized workers' pay hike demands at the 2001 Spring Struggle.
(2) At headquarters, they will work to raise the standard, referring to the results of the Spring Struggle and the guidelines of the Central Minimum Wages Council of the Ministry of Health, Labour and Welfare.
(3)Each Regional Minimum Wages Council will push ahead to raise minimum wage guidelines by region.
(4)Advance minimum wage revision by industry responding to the results of pay hikes in each region.
(5)Headquarters and local RENGO will work in conjunction to improve the minimum wage system, including making a shift toward the hourly wage in indicating unit, which was finalized last December.
This year's policy proposed ideas for mid-term activities, "new developments in the minimum wage struggle," in addition to the activities listed above. Furthermore, "discussion on the revision of guideline scheme" proposes related issues to be studied along with items endorsed at last year's 155th Central Minimum Wages Council held on December 15, which include: "(1) it is advisable to unify the regional minimum wage indicators to hourly units. (2) to do so, work to conduct a prompt and detailed study to reach a conclusion as soon as possible."

I. Activities on Minimum Wage by Region

1. 2001 Spring Struggle Activities

(1) Making Demands at each Local RENGO

Each local RENGO will advance forming demands taking into consideration the unification of "hourly minimum wages" as unit indicators. Specifically, each local RENGO will make demands individually and comprehensively consider the following facts. Minimum wage agreement for an 18 year-old regular worker in a RENGO registered union (¥892/hour), RENGO's "¥10+ hourly wage increase for all part-time workers" principle, the "Struggle for Revision Reference," as well as RENGO's pay hike goals, the results of last year's minimum wage revision by region, and the circumstances in each region.
Set demands for hourly minimum wage amounts in accordance with 1/7.68 of wages per day, not simply divided by eight, considering that an average working hour per day for one worker is 7 hours 41 minutes according to the "survey results of systems on wages and working hours: 1999."

(Note 1) "¥892/hour" is derived from the following calculation: the average monthly wage in the minimum wage agreement of ¥148,955 is divided by an average of actual hours worked by all workers within proscribed working hours per month based on the 1999 wage structure basic survey.
(Note 2) The "average proscribed working hours per day of a worker" is obtained as a weighted average through the proscribed working hours per day that is most frequently applied to workers in businesses and all the number of workers.

(2) Timing of Demand Submissions (Goal for Revision)

Local RENGO will intend to submit their demands for regional minimum wage revision with minimum wage by industry to labor standards bureaus, employers' organizations and so on in early March if possible, and begin negotiations in March.

2. Activities based on Results of 2001 Fiscal Year Spring Struggle

(1) Revised Struggle at local minimum wages councils

1. Each local RENGO will push to raise the standard, using every kind of data, and consider a shift to hourly wage indicators, and a conversion figure of 7.68 from daily wages to hourly wages.
2. Regions that moved up to higher ranks in last year's "discussion on the revision of the guideline scheme" will make every effort to attain the targeted higher rank.
3. Prefectures already higher in rank, which standards tend to be pulled down, will push forward to seek a hike in standards.
4. Every local RENGO will endeavor to "increase guideline amount (estimated by minimum wage councils)" for the sake of raising minimum wage standards by region. Meanwhile, local RENGO in regions that find it difficult to raise amounts will try to hold off deciding on revisions until the very last moment so as to support other regions that are also seeking increases.

(2) Basic Ideas on Goals for Revision

1. Initiate independence of local minimum wage councils.
2. To bridge the gap in wage levels of general workers and the regional minimum wage, try to bring the regional minimum wages closer to their appropriate levels (the long-term goal is 50% of the general worker's wage level for a national average). Also work to secure the rate of influence of the regional minimum wage (the ratio of workers whose wages would be raised as a result of a raise in the minimum wages, to the total number of workers.)
3. Work to ensure a balance between minimum wages and national rankings of various labor and economic indicators.
4. Advance activities now for "wages for part-time women workers" with the strategic goal of 85%, using data from the "minimum wage ratio by region" in "7 Referring Indicators in the 1997 fiscal year Minimum Wage Revision Struggle by Region."

(3) Specific Activity Procedures

1. Each local RENGO will set goals to revise minimum wages for the mid to long-term as well as for the 2001 fiscal year. Drafts should be sent to the RENGO Minimum Wage Office by April 13.
2. Fortify activities to expedite the 2001 fiscal year advisory on revising the minimum wage by region, expected in mid-May, linking it with the Spring Struggle.
3. Conduct a final estimate between labor representatives in the Central Minimum Wages Council and representatives from each rank (Tokyo, Osaka, Kyoto, Hokkaido and 43 other prefectures divided into four ranks) like last year to form guidelines to be set by the Central Minimum Wages Council expected to take place in mid-July.

II. Activities on Minimum Wage by Industry

1. 2001 Spring Struggle Activities

(1) Activities to obtain Intra-Firm Minimum Wage Contract Agreement

1. All industrial federations and local RENGO will enforce activities to set individual wages for standard workers in specific industries based on the real conditions in that industry and minimum wage goal levels. RENGO will also enforce activities for minimum wage goal levels for part-time workers by industry.
2. Every union will strive to conclude agreements on the intra-firm minimum (hourly) wages for all workers including part-time workers in the company, starting salaries, and intra-firm minimum wages (monthly salaries) for 18 year-old workers. They will also make agreements for a minimum wage for regularly employed workers and newly employed workers 25, 30, and 35 years of age.
3. Officials in charge of minimum wages will make these activities working closely with activities that attempt to raise extant minimum wages by industry and to create a new minimum wage by new industry.

(2) Making Activity Policies

1. Industrial federations related to the minimum wage by industry will form activity policies on the 2001 fiscal year's new minimum wages by industry that involve revising amounts and setting new wages. Further, submit them to RENGO Minimum Wage Office by the end of February.
   
2. When making demand policies, try to raise levels while keeping in mind the 2000 fiscal year minimum wage agreement standard of an 18 year-old regular worker (¥892/hour) in RENGO registered unions.
3. Each local RENGO minimum wage committee will hold organizational meetings as early as possible on the following: decide the industries that will "revise monetary amounts and newly create (minimum wages)," how to part industries when "forming new one," deciding the range of targeted workers, preparations for a setting minimum wage agreement by industry (intra-firm), organizational resolution and signature-gathering for the "necessity (of making the new one)" etc.

(3) Pre-Negotiation Activities toward Employers

Organizations with relevancy to the minimum wage by industry will ask employers for understanding on the link between minimum wage in agreement and legal minimum wages during the course of minimum wage regulation negotiations at the 2001 Spring Struggle. At the same time, those organizations will work to form a consensus with economic groups and related companies.

(4) Activities that Display Intent

Each industrial federation, local industrial federation, and local RENGO will conduct a display of intent for the 2001 fiscal year amount revision and new creation of a minimum wage by the end of March at the latest, keeping in close communication and cooperation with these institutions.

2. Activities based on Results of 2001 Fiscal Year Spring Struggle

(1) Applications for the revision of minimum wage amounts by industry for the 2001 fiscal year and the new creation of a minimum wage are slated for submission at the end of July, but applicants should make every effort to apply by the "end of June."
(2) Regarding the demand amount, aim for a "standard that will meet the intra-firm minimum wage" where at all possible based on the goal and significance of the new minimum wage by industry.
(3) As for the date of issue, systematically strive to move the plan up from "within the year" to October to November.

3. Activities based on Results of Discussions to Revise Minimum Wages by Industry

(1) Each industrial federation will essentially seek proposals for "minimum wages by industry" by agreement between labor and management. They will endeavor to increase "intra-firm minimum wage agreements" as much as possible although there were proposals for "fair competition."
(2) For actual measures regarding "adding explanations of vindicatory materials for the existence of wage gaps" when proposing a "fair competition" case proceed in accordance with the "Problem of the <vindicatory materials> in Fair Competition Cases," as per RENGO Wage Measures Office Document 81, March 18, 1999.
(3) To revise "service" and "types of business," seek unified correspondence fostering integrity with neighboring prefectures, keep in close communication and cooperation with that industry's federations and RENGO headquarters.
(4) Work closely with RENGO headquarters and related industrial federations' headquarters for deliberations on discussions on the abolition of minimum wages by employers, "Point of View" and "Reference Materials" of reports at local minimum wages councils. Cope with it in principle in consideration with "Contemporary Meanings of Fair Competition."

4. Activities Setting New Minimum Wage by Industry and Study Session Activities

(1) New Minimum Wage Setting Activities

See that new systems are well established in those fields that have transferred to new systems. Initiate concrete study and activities for forming new minimum wages taking the following fields of industries into consideration: services that will sustain the future aging society, distribution, transportation and construction. Each industrial federation headquarters and local RENGO will study industries and businesses that might set new minimum wages and report their findings to the RENGO Minimum Wage Office by April 13, 2001.

(2) Study Session Activities

1. To reorganize and intensify the minimum wage struggle by industry, hold study sessions, in which industrial federation headquarters, local industrial federations, and newly-appointed members of local subcommittees of local minimum wages councils will take a leading part on a nationwide scale outside of Bloc Meetings. In order to have as many participants as possible, schedule about three days of meetings in Tokyo with the same contents scheduled for each day.
   
2. Each industrial federation and local RENGO will try to hold their own study sessions.

III. Responses to the "Appropriate Minimum Wage System, a Shift of Unit Indicators, etc."

1. Progress of Discussions to Revise Guideline Scheme and the Basic Response Stance

(1) For two years since April 1999, the Central Minimum Wages Council has been conducting discussions on revising the current guideline scheme, targeting: [1.] revision of prefecture rank grouping, [2.] appropriate unit indicators, [3.] appropriate ways of indicating, [4.] acceptable conditions for reference materials,[5.] how guidelines should be decided considering economic circumstances and other factors.

(2) The Central Minimum Wages Council has been discussing "grouping ranks (reshuffling prefecture ranks)" before other topics based upon a "reappraisal every 5 years." Accordingly, the 151st general meeting of the Central Minimum Wages Council on March 24, 2000 endorsed the "interim report" which included "how guidelines should be decided considering economic circumstances."

(3) The Council continued with other discussions so that on its 155th meeting held last December 15 it endorsed a collective council meeting report, the findings of which follow:

1. It is best to standardize to an hourly minimum wage to indicate minimum wage amounts by region.
2. To do that, we must immediately conduct a detailed study to reach a conclusion at the earliest possible stage.
3. Maintain the current compound indication method of per diem and hourly minimum wage amounts until a shift to an hourly wage can be achieved.
4. It is best to improve and enrich reference materials to a much greater extent in order to study and evaluate the standard and the influence of minimum wages from various points of view, such as the compiling of the rate of influence from the Wage Structure Basic Survey.

(4) Although we have endorsed the change of unit indicators as described above, numerous problems remain in realizing such a change including the method of setting hourly wages during the transition.
We have decided to "immediately initiate a study" to realize the unification of unit indicators. However, employers might raise parallel deliberations on how minimum wages by industry should be (the abolitionist argument), or members representing public interests in the Central Minimum Wages Council might ask for "drastic revision" of the entire minimum wage system.
Therefore, labor will push to "revise discussions" on reform of setting minimum wages by industry and how to run deliberations, based on the circumstances of each region.
While prioritizing talks on preparations for "indicating hourly wages" as a premise, it is also imperative to continue the study that includes discussion of how the entire system should be established.

2. Issues on "Hourly Wage Indicators"

(1) Conclude the study into introducing hourly wage indicators at the earliest possible time. Labor will try to finish preparations in the 2001 fiscal year and simultaneously bring about the unification of the hourly wage indication nationwide in the 2002 fiscal year.

(2) There are several possible methods of indicating guidelines that include indicating an absolute minimum wage amount by rank (49 prefectures divided into four ranks), a "zone method" to indicate the raise range, and so forth. On the precondition of maintaining the current system's framework (the Central Minimum Wages Council proposes guidelines for revised amounts, then local minimum wages councils decide for own region), we must study concrete guidelines which are more effective as a base.

3. Basic Ideas on the Condition of Minimum Wage by Industry

(1) Discussions to overhaul the system were first endorsed at the Industrial Federations National Councils in 1998 where it was decided "at an appropriate future time, it is advisable to deepen discussions and deliberate (system revision)." This topic was also broached in a speech delivered by RENGO President Washio who stated, "(RENGO) restart the study in 2 to 3 years."
It is conceivable that management will insist on those ideas thereby making it necessary to discuss possible countermeasures on how to cope with them. When doing so, we do not share management's views on abolishing or downsizing minimum wages by industry. Rather, RENGO will deliberate from the posture of setting minimum wages by industry and reforming running deliberations.

(2) Keeping hourly wage indicators as a base, study minimum wage indicators by industry in terms that concerned labor and management will jointly decide upon minimum wages based on the actual conditions in their industries and businesses.