JAPAN

Job Position Is Not So Rosy As PM Claimed

EMPLOYMENT policy has been a major issue in general elections to the House of Representatives, the lower house of the Japanese Diet (parliament), held on November 9. Prime minister Koizumi Junichiro and the ruling parties tried to emphasise that the job market was improving with about 2 million jobs created, mainly in service sectors.

Yet, a big question mark still hangs regarding the employment situation, according to the Akahata, daily organ of the Japanese Communist Party (JCP) that analysed the issue of hidden unemployment in its October 21 issue.

DISGUISED JOBLESSNESS

The unemployment rate in August stood at 5.1 per cent, down 0.2 per cent from the previous month, with the ratio of job openings to job applications also showing some improvement. Thus the statistics indicate that the unemployment rate is falling. But these figures do not necessarily mean that the number of jobless people has decreased. On the contrary, there is a sharp increase in the number of people who give up seeking jobs due to a scarcity of the jobs they are looking for.

In 2002, the figure for hidden unemployment increased to 1.04 million, compared to 6,80,000 in 2001. In August 2003, the number further increased by 7,70,000. Total payrolls fell by 3,80,000 in 2002, the first drop in three years. The number was 1,60,000 less, compared to the same month the previous year.

Although there were several months that showed some improvement, the ratio of registered job offers to registered job applications for August was mainly for part time jobs. In fact, part time job offers outnumbered job seekers while the full time jobs were available only to half of the job seekers. Most of the jobs offered were low paying, unstable part time jobs.

This, obviously, means the employment conditions in Japan are steadily turning for the worse.

PAYROLLS ARE FALLING

In his election speeches, prime minister Koizumi touted the estimate of 2 million jobs created in the last three years in and around the service sector as an “improvement.” The election platform of the Liberal Democratic Party (LDP), that has been leading the three-party ruling coalition, also emphasised this point. But the statement left much room for doubt.

First, although the Koizumi cabinet was only two years and a few months old by the election time, it inflated the number by presenting figures for the last three years. Second, even the government’s inter-agency team for the creation of 5.3 million jobs had estimated that at the best only 9,20,000 jobs were created in the last two years. 

An industry-wise breakdown of the number of employed through fiscal 2001 and fiscal 2002, as given by the government’s labour force study, showed that payrolls had fallen as below: a fall in employment of 4,60,000 in retail, wholesale and restaurants; of 2,80,000 in construction; 2,70,000 in forestry and agriculture; and 60,000 in finance, insurance and real estate. The service industry is the only sector that showed an increase --- of 6,80,000. In sum, payrolls decreased by 1.35 million.

Thus the real problem is that of a deep employment crisis that leaves no justification for the claim that “two million jobs were created.” The government, thus, failed to understand how hard it has been for workers to maintain their jobs and for job seekers to find jobs.

RESPONSIBILITY OF CORPORATIONS

In this regard, the main responsibility lies with the major corporations who are seeking to secure as much profit as possible through jobs cuts in the name of “employment adjustment.” These corporations dismiss workers in the name of corporate restructuring and force employees to work overtime without pay. If these corporations have so much work as to require overtime work, the question is: why cannot they add more people to their payrolls?

During the run-up to the general elections, however, neither the LDP nor the Democratic Party of Japan (DPJ) referred to this responsibility of the corporates for the worsening job situation in the country. Only the JCP sought to highlight this issue.

A few examples of this culpability of the large corporations are the Chiyoda Corporation, Chubu Electric Power Company, and Takefuji Corporation who were ordered to pay to their workers the back wages for overtime. This was a result of these workers’ struggles and the JCP’s efforts in parliament to compel the government to eliminate corporate crimes, including the non-payment for overtime work.

On October 23, the health, labour and welfare ministry also announced that 35.8 per cent of business offices surveyed had been neglecting to pay overtime allowances and were sent administrative directives to redress the situation.

The survey showed that 1,543 out of 4,311 business establishments violated article 37 of the Labour Standards Law that stipulates that employers must pay employees extra wages for overtime work.

The ratio of such business institutions increased from 29 per cent in 2001 to 32.9 per cent in 2002 to 35.8 per cent this year.

Against the backdrop of Tokyo’s listed manufacturers planning to cut 3,00,000 jobs in three years, remaining workers are forced to bear excessively heavy workloads for long hours. Some commit suicide, die, or become mentally unstable because of overwork.

The JCP has taken up this issue 241 times in Diet discussions since 1976, calling for the eradication of unpaid overtime work. Yet the system still prevails in the country. A major issue in the next House of Representatives will therefore be whether to allow large corporations to continue with this lawless practice.

HAZARDOUS WORKPLACES

This lawless practice has left many wives worrying that overwork may kill their husbands. Taking this state of workers seriously, the JCP took the lead during parliamentary debates on this issue, confronting the government many times.

As a result of written instructions issued by the health, labour and welfare ministry to end the unpaid overtime work, over 15 million yen have been paid in back wages to workers for the past two and a half years. The amount, however, is still only a fraction of what needs to be paid to the workers.

The practice of forcing workers into overtime work without pay also means that, in the absence of rules or the non-compliance of the existing rules, Japanese workplaces have become dangerous for workers.

One of the factors that harm the work environment is that, no matter how long an employee works, she or he is not paid more than the fixed amount. The application of this system, that is peculiar to Japan, has been broadened to include the white collar workers. The result is that large corporations are able to increase their profits as they can force their workers to work without limit, for no extra pay.

Opposing this system, the JCP argued that the need now is to end the forced overtime work and long working hours. The JCP held the LDP and DPJ as responsible for having supported the introduction and the expansion of this system.

THROWAWAY WORKERS BEING USED

Another major attack on the work environment is the unregulated use of throwaway workers, including low paid temporary workers and fixed term contract workers.

In 1999, the law was revised to allow companies to use temporary workers without restrictions. Later, further deregulation lifted the ban on the use of temporary workers in manufacturing sector. The maximum length permitted for fixed term employment has been extended to the corporates’ advantage.

As part of the effort to protect the contingent workers’ jobs and rights, the JCP has been insisting on the need to create more stable jobs instead of low paying unstable jobs, and demanded that the part time workers and workers on fixed term contracts be treated on par with full time employees.

Business houses have been openly flouting the labour laws and asking for lifting of restrictions concerning labour. Their aim is to ensure an increase in profits through a reduction of the full time workforce, replacing them with cheap labour. They also intend to make further gains from the growing manpower leasing business.

In the last five years, the number of full time jobs has decreased by 3.5 million. In contrast, the number of contingent jobs has increased by 3.23 million. This increase in low paying jobs has made it more difficult for young people to support themselves, causing social unrest and low birth rates. Clearly, an increase in the low paying jobs can only reduce personal consumption and thus obstruct economic development.

Yet, displaying extreme callousness, the LDP and Komei Party have been asking for still more deregulation to create a ‘competitive’ society. Needless to say, such a society, dominated by market forces, can only be governed by the law of the jungle.

In its jobs policy package, the DPJ called for ‘reform’ in the regulations concerning temporary, fixed term contract employment, and the discretionary work system. The DPJ supported the 1999 adverse revision of the Manpower Dispatching Business Law and deregulation of employment on term contracts.

This is natural. Jobs and the rights of working people cannot be defended by the LDP and the DPJ who rely on corporate donations.

A rough estimate shows that if only the system of overtime work without pay is eliminated, 1.6 million new jobs can be created in the country.

As for the workers and their representatives in India, this situation of joblessness and unpaid overtime work does hold a lesson for them. For, the fact is that many of our employers are also hankering for what they call the “Japanese model of management.”