Employers want to use "work-sharing" as means of cutting wages -- Akahata editorial, January 24, 2002

As more people than ever are out of jobs in Japan, "work-sharing" as a means of job creation draws much attention nowadays. The Japan Federation of Employers' Associations (Nikkeiren) is calling for "flexible application of work-sharing" apparently in an attempt to cut wages under the pretext of the need to maintain employment.

Cutting labor costs

Work-sharing is a way to create jobs through a shorter workweek.

The Nikkeiren report sets forward Japanese employers' unified view on wage increase demands that were made by trade unions in the annual Spring Struggle. This year, it calls for emergency work-sharing to be used for creating jobs through a shorter workweek in ways that employers may be enabled to pay less wages and bonuses to workers.

Nikkeiren President Okuda Hiroshi made clear that the crux of the proposal is wage cuts, not a shorter workweek, saying that "maintaining jobs" and "reducing total labor costs" are major aims.

In fact, many companies have begun wage cuts under the pretext of maintaining jobs. Okuda appreciates such steps as an application of work-sharing. Cutting wages in the name of maintaining jobs is just another corporate "streamlining" tactic to force workers to be compliant.

Corporate restructuring by large corporations involves 300,000 job cuts. This shows how deceptive the employers' call for job maintenance is. It is outrageous for business circles to allow corporations to dismiss more workers while they threaten workers into accepting lower wages in exchange for jobs maintained.

As mid-term and long term aims, Nikkeiren calls for the flexible application of work-sharing using a variety of forms of employment, the aim being to replace many more full-time workers with part-timers and other contingent workers whose wages can be very low and whom employers find easier to dismiss. This is based on the business circles' strategy for the 21st century to establish a structure that secures larger profitability and lower operating costs.

This completely goes against the world current. In Germany and France, job creation is practiced through a shorter workweek without wage cuts. The Netherlands prohibited discrimination between the hourly wage for part-time and full-time workers. This has encouraged many people to work for less hours and helped to increase employment as a whole.

What will become of recession-plagued Japan if workers are to suffer more from corporate restructuring, wage cuts, and low-paid unstable jobs? Nikkeiren is aware that efforts to change away from the high-cost structure may spur a deflationary spiral and draw public criticism, and that the economy may plunge into a severe recession.

Business circles are only concerned with their immediate profits. They don't think about the danger of the economy failing. This is how the business circles' quest for nothing but profit will lead the national economy into catastrophe.

Both wage increases and job creation are necessary

It is necessary to change away from the government economic policy which encourages business circles and large corporations to stay the course. The pressing need is to increase jobs by ending the illegal practice of unpaid overtime work, ensuring that every worker has the right to use paid annual holidays, and reducing overtime hours worked. If these steps are carried out, 3.5 million jobs will be created for those who are out of jobs at present.

The National Confederation of Trade Unions (Zenroren) and other unions in the 2002 Spring Struggle are fighting against the business circles' wage-cut attacks and are calling for wage increases for all workers, an end to corporate restructuring, and job increases through a shorter workweek. In these calls, the people see that such moves will help improve their livelihoods and lay the basis for rehabilitating the national economy. (end)