Business giants refuse to listen to workers

Japan's corporate executives on December 17 announced a labor policy of further holding down workers' wages and making jobs more insecure. This is part of management's strategy for dealing with the demands for wage increase that unions will put forward in next spring's collective bargaining.

The report of the Japan Business Federation's Committee on Management and Labor Policy makes no reference to the unprecedented corporate streamlining that means further personnel cuts and an increase in unstable jobs, with more than 3.6 million people left without jobs.

The report stresses that reform is essential for Japan to be globally competitive.

The report does not refer to the swift write-offs of bad loans pursued by Prime Minister Koizumi, although it admits that the prompt disposals of non-performing loans will cause more unemployment.

In order to promote labor mobility, the report calls for the labor market to be further deregulated.

Regarding an across-the-board increase in basic pay, which the workers are demanding, the report advises employers to insist on their inability to give a raise in the present situation. The report even suggests a freeze on regular wage increases, saying that workers should be allowed to choose between job security without a pay raise and a wage cut.

To yield a higher operational efficiency with lowered labor costs, the report encourages streamlining through spin-offs, outsourcing, and overseas operations. It also proposes replacing full-time workers with contingent workers like part-timers and temporary workers.

Ban'nai Mitsuo, secretary general of the Japan Confederation of Trade Unions (Zenroren), on the same day criticized the business federation for seeking to keep Japan's economy in a vicious circle of personnel cuts, job insecurity, wage cuts, falling domestic demand and personal spending, economic downturn, and a return to personnel cuts. (end)