Wage cuts for government employees will exacerbate economic crisis -- Akahata editorial, August 11The National Personnel Authority on August 8 for the first time recommended a wage cut for government employees, and Prime Minister Koizumi Jun'ichiro said he would accept it.
The wage cut plan, if introduced, will affect 7.5 million workers, including government officials, local government officials, and special corporation workers. The reduction of salaries for the four million central and local government employees will total 700 billion yen (about 5.8 billion dollars) a year.
This alone will deal a serious blow to the living standards of government employees and their families, and further slow down the economy because such a plan will accelerate a "wage cut race" affecting all workers, including those in the private sector, further exacerbating the economic crisis. Also, the wage-cut may be used to reduce pension benefits.
State to start 'wage-cut race'
The reason the National Personnel Authority gave for a pay-cut was that wages for public sector employees are now higher than wages for private sector workers as a result of declines in wages in the private sector. The recommendation also includes cuts in bonuses for public employees for the fourth consecutive year.
Japan's economy is in a vicious circle which exacerbates the recession. Major corporations' restructuring has further discouraged people from spending money.
Major corporations are rushing for unilateral restructuring and work force reductions. This has held down salaries in the private sector and contributed to the rise in the unemployment rate to a post WWII- high. The total earnings of employees sharply dropped by four trillion yen (about 333.3 billion dollars) over the previous year.
A wage cut for government employees in conformity with the on-going wage cuts under the leadership of large corporations will only add fuel to the wage-cut race, a vicious circle.
The future of Japan's exports, on which the government places hope, remains unclear due to the economic chaos in the United States. Large corporations are attempting to further reduce jobs and labor costs. Clearly, cuts in the salaries for government employees will be used by large corporations as a pretext for their further arbitrary restructuring.
When private companies cut workers' wages, government employees' salaries will follow suit. Then, private companies will continue restructuring on the grounds that public employees have had their salaries reduced. The proposed wage cuts for government employees is unacceptable because it will lead to such a chain of wage cuts.
What's more, the Koizumi Cabinet intends to use this strategy to impose further economic burdens on the people.
The Cabinet plans to increase people's expenses by more than three trillion yen in medical services, pensions, and insurance premiums for nursing care and unemployment. In addition, the Cabinet intends to increase revenue by imposing income tax on low income people who are currently exempt from taxation, and by increasing the consumption tax rate.
The government is going to impose these "pains" on the people, using the excuse that government employees will also experience hardships since their salaries will be cut.
Health, Labor, and Welfare Minister Sakaguchi Chikara hinted at a press conference on August 2 that the present freeze on the system of pension sliding with price falls is to be lifted to result in a smaller pension. He said, "If salaries of public servants are cut, we will have to ask pensioners to accept it."
We can't allow the government to use such sham logic to hold a hardship endurance contest among the people.
Cancel the plan to increase people's burdens
The National Personnel Authority recommendation system was introduced in order to protect the interests of government employees who are deprived part of their basic rights as workers. But the government is using this system to worsen public servants' living conditions and impose pains on all the people. It is using the system in a completely opposite way from what it was originally intended.
The government must stop increasing people's expenses, as it will only bring about a catastrophe in Japan's economy. It must change the economic policy to one of helping to rehabilitate the economy. (end)