5th Central Executive Committee Meeting
Towards March Draft Proposal Blueprint
Basic Ideas for Work Sharing (draft)
(8 February 2002)
At the 5th Central Executive Committee Meeting on February 7, RENGO endorsed its "Basic Ideas for Work Sharing (draft)." Henceforth, based on this basic idea RENGO will respond principally with regards to this matter at high-ranking executive meetings (presidents, deputy and vice presidents, general and assistant general secretaries) and plans to endorse its "Basic Idea for Work Sharing" at its March 5 meeting. During this period, industrial federation officials will schedule opinion forums at study sessions.

I.Perceptions of the Current Situation
  1. Worsening Employment ~ Job problems turn into social problems ~
    * Unemployment rate continues to record highs. (Jobless rates are especially high among young, middle-aged and elderly persons.)
    * Jobless periods are extending and the rate of recipients of employment insurance decreases.


  2. Large Imbalance between Living Standards and Work
    (1) Quantitative Imbalance from a Macro Point of View
    * Numerous jobless on the one hand, long working hours with unpaid overtime on the other.
    * A RENGO survey states that overtime increases in workplaces with employment adjustments as does the scope of duties.

    (2) Qualitative Employment Imbalances
    * Non-regular employees are on the rise and labor condition differentials expanding. (Rise in cheap labor, outsourcing trend in the manufacturing industry.)
    * Background of imbalances: international competitiveness, reduction of fixed costs through management that stresses short-range profit rates.

    (3) Imbalance between Work and Living
    * "Combine Home and Career" will most likely be setback. (Metropolitan Tokyo survey)
    The imbalances show that the problems facing Japanese society would not to be solved only by simply improving the jobless rate but also include revision of work methods and setting up work rules. They also show that solutions to these problems must not be delayed and require urgent action.

II. Basic Concepts for Work Sharing
* One measure to resolve the said problems = Work sharing
* Under the current critical employment situation, work sharing is a macro measure to relieve work imbalance both in qualitatively and quantitatively, and create a culture of "new working methods" and rules.
* Work sharing is a measure to be obtained within a "social consensus" and "social contract" framework rather than in activities sought individually by each business.
* Focus on changes in the social burden when labor conditions change.
Share a sense of crises and recognition of a necessity "to tackle problems facing the whole of society." (cf. 'Declaration to Promote <Social Consensus on Employment>' by RENGO and NIKKEIREN released last October)

III. Concrete Implementation of Work Sharing
  1. Expansion of Alternative Working Methods through Establishing Rules for Equal Treatment Principle
    * Expansion of alternative working methods for workers: ongoing 'diversification' is a convenient expansion that aims to reduce costs.
    * Seek working methods that break down distinctions among regular, non-regular, permanent, non-permanent: no difference in basic labor conditions, only in normal working hours. (e.g., Standardize for 8-hour workers and 'short-time permanent workers' such as 6-hour workers.)
    * The fundamental premise for work sharing: establishment of "equal treatment" principles based on jobs and resolution of differentials in labor conditions by the forms of employment or work arrangement.
    * What constitutes "equal treatment" principles in the current circumstance—concepts of jobs or hourly wages—have not been established yet.
    * RENGO seeks legislation to "abandon differential treatment": start from a social consensus on major principles and directions. ( cf. Organize RENGO and NIKKEIREN from both sides of contention = "fair dealings based on jobs.")
    * When promoting work sharing, establish a "family-friendly way of working"-based rules, not based on typical ways of working which take habitual overtime and transfers for granted.


  2. Job Creation through Shortening Working Hours
    * Sharing work among those with work and those without work.
    * (Measures to "reduce unemployment" rather than "not increase unemployment any further.")
    * Precisely, new job creation through shortening normal working hours.
    * Examples in other countries :
      [1] Germany shortened weekly working hours based on a labor-management agreement.
    [2] France shortened legal working hour limits.
    [3] Holland combined shorter legal working hours with increased short-time workers.
    [4] Sweden combined shorter working hours of the elderly with early retirement.

    (1) Regulation of Unpaid Overtime and Habitual Overtime
    * Long-hour overtime and high unemployment are coexistent in current Japan.
    Should start from a macro point of view "share work among those with too much and those without enough."
      [1] "Eradication of unpaid overtime" through thorough time management.
    [2] "Reduction of habitual overtime" by concluding labor agreements.
    [3] "Use full paid leaves," which is the labor unions' task.
    * From a macro point of view, one estimate indicates that 900,000 new jobs could be created by abolishing unpaid overtime. (From "Work Sharing" by the Japan Productivity Center for Socio-Economic Development)
    * Job creation through reducing overtime hours at local governments.
    * It is important that government, labor, and management each play their role; e.g. thoroughly strengthening government guidance, raising overtime premium rates, etc.

    (2) Employment Creation through Shortening Normal Working Hours
    * Measures based on Japanese employment customs and labor-management agreement systems.
    * Shorten legal working hours = evaluation not yet established in France further study necessary.
    * In the meantime, build a social framework that: is based on independent activities by labor-management in each industry and individual labor-management, promotes and supports them.
    * On the government-labor-management level, examine measures to support the corporate and workers through effectively combining systems such as legislation promoting shorter working hours and aid for new hires.
    * Study job expansion mainly for the young by shortening working hours of the elderly and early retirement incentives.
    * Support measures at the local government level.

IV. Response to Emergency Refuge Employment Adjustment
  1. Segmentation between Work Sharing
    * Some businesses have their hands full with maintaining employment under the current economic circumstances. (They are in the phase where activities are needed to maintain jobs.)
    * Various "employment adjustment" measures conducted at individual companies are different from work sharing macro measures.
    * Regard employment adjustment as "streamlining measures" taken on by industrial organizations and unit unions.

  2. The Roles of Labor and Management
    * In the name of work sharing there should be no moves to cut wages without shortening working hours, any unilateral cuts in working conditions, or any unfavorable changes that go unchallenged in workplaces without labor unions.
    * It is necessary for labor and management to reconfirm the following points.
      (1) Easy employment adjustments must not be conducted.
    (2) One-sided downsizing of labor conditions or unfavorable changes should not be conducted.
    (3) Full discussion between labor and management is necessary when conducting changes in labor conditions or employment adjustments.
    (4) Compensation for shut-downs is indispensable when working hours are shortened and/or when temporary shut downs are conducted for the companies' convenience.

  3. Social Support Measures
    * If employment adjustments by individual businesses are affirmed by social consensus that are "supported as a wide-ranging social problem," then temporary support measures would be possible.
    * When downsizing is unavoidable by any means from the point of production or business plans, business will shorten working hours and:
      (1) Corporate managers will promise to maintain employment.
    (2) For businesses which reached agreements with workers to allow a set income decrease (hourly value unchanged) due to shorter working hours.
    (3) Government will conduct a measure that will cover part of the income lost by those workers.
    * Emergency refuge employment adjustment is a behavioral procedure which government-labor-management would sustain activities for job maintenance. (One might call it "emergency refuge work sharing.")
    * Conditions of measures
      (1) The necessity for management. (Decrease in production output and/or sales figures.)
    (2) Efforts to avoid employment adjustments. (Executive remuneration reduction, etc.)
    (3) Conclusion of the "employment maintenance agreement."
    (4) Thorough time management. (Resolve unpaid overtime and/or habitual overtime.)
    (5) Personnel management that is feasible for business projects.
    (6) Limited agreements and restorative measures.
    * Support measures
      (1) Wage subsidies for workers, relief measures for businesses. (cf. Job adjustment funds as business subsidy.)
    (2) Subsidize "shorter working hours + new hires" together. (Increase aid rates for small to mid-sized companies.)

V. Employment Measures that the Government Should Perform
* These measures will not relieve all companies facing job problems. (Work Sharing is not a cure-all.)
* Study employment measures which the government should perform in forums like the Employment Promotion Council of Government, Labor, and Management.
  (1) Curb the deflationary spiral. (Begin new infrastructure-for-livelihood-related projects, ease the monetary policy, and so on.)
(2) New employment creation through the responsibility of the government and local governments.

VI. How the Study Should Progress
* Labor unions also need to challenge job problems at the peril of moving away from existing frameworks. This study is progressing at each industrial federation and on every prefectural level.
* Current schedule
1. RENGO/NIKKEIREN: Compile "interim report" by March.
2. Government/labor/management: compile ideas by March.
* RENGO will respond principally at high-ranking executive meetings (presidents, deputy and vice presidents, general and assistant general secretaries) and plans to endorse the "Basic Ideas for Work Sharing" at the March 5 meeting. During this period, industrial federation officials will schedule opinion forums at study sessions.


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