Government makes a proposal for labor contract bill to severely undermine labor legislation

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Government makes a proposal for labor contract bill to severely undermine labor legislation

The Ministry of Health, Labor and Welfare on November 21 submitted to the Labor Policy Council its proposal for a labor contract bill, which the ministry intends to submit to the Diet next spring.

This rough draft specifies that by rewriting workplace regulations corporations may legally worsen working conditions, including wage cuts without the consent of each worker.

It is also to establish a new system of settling unfair dismissal disputes by monetary compensation, in which corporations are not required to reinstate dismissed workers provided that they pay money to the workers for the dismissal, even though the court decided the dismissal was invalid. The draft stopped short of specifying the amount of dismissal compensation.

Coupled with the plan to introduce the white-collar exemption system under the name of an autonomous working-hour managing system that enables companies to make workers work for long hours without paying them for overtime work, the ministry has proposed three major changes that seriously undermine labor legislation, including the Labor Standards Law, to meet the business circles' demands.

Since corporations can change workplace regulations without the consent of workers even today, labor unions have long called for an imposition of tougher regulations. The ministry's proposal, however, will allow corporations to impose labor contracts favorable to the corporations in defiance of any opposition by workers.

Faced with the strong opposition of workers, the labor ministry in 2003 gave up the attempt to establish a system to settle dismissal disputes with monetary compensation. This system will enable corporations to dismiss workers without having to face a legal dispute.

In the panel meeting, representatives of labor stated, "As employers can unilaterally make or change workplace regulations, it is inappropriate to include such a rule in the Labor Contract Law that is based on an agreement between employers and employees."

They also criticized the system of settling dismissal disputes with monetary compensation on the grounds that it will deprive workers of their right to return to their workplaces.
- Akahata, November 22, 2006