2001 Spring Struggle
Safeguard Against Worsening Economy—Gain Full Amount
2001 Spring Struggle 4th Urgent Policy
Responses for the Peak Period Endorsed
(9 March 2001)

On March 8, RENGO confirmed the 4th Urgent Policy for the 2001 Spring Struggle at its 4th Central Struggle Committee Meeting. Based on this policy, each union will seek to gain full demand amounts at negotiations this coming peak period so as to wipe away fears over worsening the economy, as well as to faithfully respond to union members efforts.

1. The Current State of Affairs

(1) Economy/Business

According to the government's February Monthly Economic Report, the state of the economy was revised downward for the first time in three months. The main reasons for this were business' negative attitude towards exports due to the slow-down in the US economy and sluggish household budgets or consumption, which the report describes as "stagnant bonuses" for household incomes.
NIKKEIREN is emphasizing employment by claiming that "wage raises and consumption are not mutually related," but it is an undeniable fact that "wage increases and employment" are necessary to increase consumption.
On the one hand, corporate performance has been showing a trend toward overall improvement. Only in a section of businesses can we find a move toward "downward revision." Even in those businesses it is clear that there was an improvement in performance compared to one year ago. Therefore it is important to face negotiations with the basic attitude that the overall economy-outlook on business conditions has "improved compared to the last year."

(2) Employment/Living Standard

The total average unemployment rate for January 2001 was 4.9%, continuing last December's seasonally adjusted rate, is again the highest in history. Considering a prospective rise in unemployed among newly graduated students after March, and a predictable intensification in business restructuring in the future, there is no way to predict the employment conditions.
Further, the total average unemployment rate for the year 2000 was 4.7%, or the same rate as the year before, also the worst on record to that time. The total number of unemployed is 3.2 million people, an increase of 30,000 people over the previous year a new worst record. What is more, the ratio of job openings to applicants was 0.59, or only 0.11 points better than last year's worst ever record.
According to the 2000 Family Income and Expenditure Survey (Workers' Households) put out by the Statistics Bureau and Statistics Center real income dropped 1.5%, disposable income was down 1.4% (both real numbers) and real income, disposable income, and spending were all down in nominal and real terms for the third year in a row.

2. The State of Activities by Each Industrial Federation

Conditions for the submission of demands in unions in each industry have been progressing at approximately the same rate as in normal years. Leading unions facing the peak period have already begun their negotiations but have yet to start in earnest. Further, worsening of the environment has had a negative overall impact on negotiations by unit unions.
Considering the climate of negotiations, each liaison council is intensifying its back up of unions drawing responses during the peak period. Also, liaison councils in the public sector are fortifying links with the private sectors and enforcing their struggle stance.

3. Urgent Struggle Strategy

(1) Summary of Demands Submission and Response Drawing Plan

  1. According to a survey of conditions of demands submission at all unit unions, 560 unions, or 4.7%, have waived demand submission down slightly from last year (878 unions or 6.9% stated in the survey for the same period last year). If those unions that are unclear whether or not they will submit demands were included, they would total 1,257 unions, or 10.6%, up slightly from last year (1,239 unions or 9.7%).
  2. Those unions that waived demand an increase in base pay for various reasons will strive to maintain the wage curve and at the same time work to disclose that information.
  3. Those unions expecting to draw responses during the peak period are 1,291 unions or 12.2% and the concentration is up significantly (858 unions or 7.4% last year). Also, the number of unions that flocked to draw responses in concentration zone periods are about equal to the previous year, however those unions expecting to draw responses in March are up by 200 unions over the previous year.

(2) Demand Summary Results

The 2nd Demand Summary Results conducted on March 5 are listed below with this year's numbers falling slightly below last year at this time. Further, RENGO is making public the data of the major registered unions

Individual Wage Methods 2001 (3/5) 2000 (3/1)
Method A (gross base increase) Final Goal Standard /Gross Base Increase Final Goal Standard /Gross Base Increase
Unions with Indicator 30 year olds 268,996yen 4,221yen (1.59%)
(66 unions-207,026 people)
259,350 yen 5,426 yen(2.14%)
(36 unions-34,922 people)
Unions with Indicator 35 year olds 299,186 yen 3,587 yen(1.21%)
(115 unions-799,844 people)
291,606 yen 3,410 yen (1.18%)
(163 unions-1,141,496 people)
Method B (with periodic raise) Final Goal Standard /Wage Increase Demand Final Goal Standard /Wage Increase Demand
Unions with Indicator 30 year olds 266,970 yen 11,235 yen (4.39%)
(103 unions-211,218 people)
267,472 yen 10,053 yen (3.91%)
(93 unions-288,991 people)
Unions with Indicator 35 year olds 291,822 yen 11,066 yen (3.94%)
(139 unions-209,112 people)
291,473 yen 9,796 yen (3.48%)
(131 unions-220,514 people)

Average Wage Increase Method
Demand Amount(weighted average)
8,148 yen(2.68%)
(431 unions-904,579 people)
8,296 yen (2.76%)
(460 unions-1,003,498 people)

(3) Activities to Maintain Wage Curve

  1. The number of the industrial federations has risen that confirm "maintaining the wage curve" between labor and management at pre-negotiations with the help of guidance and support by other industrial federations or local RENGO. Intensify the activities continuously at unit union level.
  2. Further, according to the RENGO Labor Conditions Survey (conducted in 2000 with registered unions), the average of estimated difference in basic wage amounts for each year between the ages of 30 to 35 is approximately 7,000 yen for high school graduates/production workers and 8,000 yen for office and technical workers.

(4) Activities on Wage Hikes for Part-time Workers and Others

  1. The activities of wage hike demand submissions in the level of industrial federations, toward the goal of improving part-time workers' treatment at workplaces, have been progressing as a result of guidance and support by industrial federations and local RENGO. RENGO will conduct a survey of unit unions regarding their state of demand submissions on pay hikes for part-time workers in late March.
    Unions that could not reach concrete demand submission will pursue negotiations that will lead to future activities such as verifying equal treatment, in accordance with the real state of part-time workers at workplace.
  2. RENGO will continue its social appeal based on the results of the "Gathering to Consider Part-time Work" held on the afternoon of February 27.

(5) Activities to Shorten Working Hours / Extend Employment

RENGO will conduct a survey in late March of the state of demand submissions regarding premium rates for overtime work and the extension of employment.

(6) Approaches to the Peak Period

  1. RENGO will look to gain the full demand amounts emphasizing in negotiations that: a) an absolute base pay raise is necessary to dispel a worsening of the economy and b) the necessity of returning answers for the deserved support and efforts of the union members during this period.
    In order to do so, each union will strive to enforce their bargaining power for example establishing their right to strike and to establish their position for the goal of drawing answers.
  2. To make the peak period set for March 14-16 establish an "all-out" stance, strengthen activities by industry to have as many unions as possible concentrate on that period when drawing answers.
    At the present time, major unions in the metals, resources and energy, transportation, food, chemical and textile, and other industries are advancing negotiations with the goal of drawing responses. The overall posture of the peak period is taking shape.
  3. Furthermore, strive to have unions concentrate on drawing responses in the zone period leading up to March 23, and those in the zone leading up to the end of March. RENGO will confirm by each industry at the 5th Expanded Tactical Committee Meeting on March 12.

 


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