Japanese Labor Laws and Efforts of Labor Unions Yoshiko Ichikawa Director Employment and Labor Legislation Division Department of Working Conditions Japanese Trade Union Confederation (JTUC-RENGO) Contents I. II. III. IV. V. Roles of labor laws Overview of Japanese labor laws Legislation of labor laws in Japan Efforts of labor unions Current issues related to employment and labor I. Roles of labor laws Principle of freedom of contract by voluntary will of equal citizens Gap in bargaining power between employees and employers (Substantially unequal transaction) Acquiesce in poor working conditions, destruction of health, non-compensation for industrial accidents, free dismissal, intermediary exploitation, forced labor, etc. Protection by labor laws Definition of minimum working conditions, establishment of Industrial accident/unemployment compensation scheme, protection of labor union rights Effects by legislative control Change in the number of deaths by industrial accidents (people) 1972 Industrial Safety and Health Law enacted (Up to 1972: Reports of Workers’ Death, Illness and Injuries, In/After 1973: Industrial Accident Insurance Benefits Data) 4 II. Summary of Japanese labor laws Constitution of Japan Article 27 (Right and Obligation to Right, Standards for Working Conditions, and Prohibition of Exploited Child Work) 1. All people shall have the right and the obligation to work. 2. Standards for wages, hours, rest and other working conditions shall be determined by law. 3. Children shall not be exploited. Article 28 (Right of Workers to Organize) The right of workers to organize and to bargain and act collectively is guaranteed. System of Japanese labor laws Article 27 Constitution Article 28 Para. 1 (Right to work) Employment Measures Act, Employment Security Act, Human Resources Development Promotion Act, Temporary Staffing Law, etc. Para. 2 (Determination of standards for working conditions) Labor Standards Act, Minimum Wages Act, Industrial Safety and Health Act, etc. Para. 3 (Protection of Children) Child Welfare Act, Protection of minors under the Labor Standards Act Guarantee of three labor rights (right to organize, right to bargain collectively and right to act collectively Labor Union Act, Labor Relations Adjustment Act, Regulations of labor relations commissions Labor Standards Act Article 1 (Principles of Working Conditions) 1. Working conditions shall be those which should meet the needs of workers who live lives worthy of human beings. 2. The standards for working conditions fixed by this Law are minimum standards. Accordingly, parties to labor relationship shall not reduce working conditions with these standards as an excuse and, instead, should endeavor to raise the working conditions. Article 2 (Determination of Working Conditions) 1. Working conditions should be determined by workers and employers on an equal basis. 2. Workers and employers shall abide by collective agreements, working rules and labor contracts, and shall fulfill their respective duties faithfully. Article 13 (Contract Violating this Law) A labor contract which provides for working conditions which do not meet the standards of this Law shall be invalid with respect to such portions. In such a case the portions which have become invalid shall be governed by the standards set forth in this Law. Summary of the Labor Standards Act • Principles – Equal treatment, prohibition of forced labor, prohibition of intermediate exploitation, guarantee of exercise of civil rights • Wages and hours – Wage amount, payment method, working hours, requirements for overtime/holiday work, increased wages, exemption of working hours • Rest, holidays and leave – Rest hours, holidays, annual paid leave • Working rules – Requirement to prepare/change working rules Labor Union Act Article 1 (Purpose) 1. This Law are to elevate the status of workers by promoting their being on equal standing with their employer in their bargaining with the employer; to defend the exercise by workers of voluntary organization and association in labor unions so that they may carry out collective action, including the designation of representatives of their own choosing to bargaining working conditions; and to promote the practice of collective bargaining, and procedures therefore, for the purpose of concluding collective agreements regulating relations between employers and workers. 2. Article 35 of the Criminal Code (Law No. 45 of 1907) shall apply to collective bargaining and other acts of labor unions which are justifiable and have been performed for the attainment of the purposes of the preceding paragraph, provided, however, that in no case shall exercises of violence be construed as justifiable acts of labor unions. Summary of the Labor Union Act 1. Right to organize labor unions • 2. Organizations of workers or federation thereof organized for the main purposes of improving working conditions and raising the economic status of workers. Protection of labor union • 3. Requirements for democratic administration of labor unions (e.g. election of officers, collective actions such as strike), incorporation, claim for remedies against unfair labor practices to the Labor Relations Commission) Indemnification of civil/criminal responsibilities to collective actions by labor unions Prohibition of unfair labor practices Effectiveness of collective agreements, etc. 4. 5. • 6. Invalidity of any portions of a labor contract violating the working conditions prescribed in collective agreements (Priority of collective agreements) Setup of the Labor Relations Commission, etc. • • Tripartism (public interest, workers and employer) Mediation, settlement and arbitration of labor disputes, remedies against unfair labor practices Unfair labor practices prohibited by the Labor Union Act • • • • Discharge or otherwise treat in a disadvantageous manner a worker by reason of such worker's being a member of a labor union, having tried to join or organize a labor union, or having performed justifiable acts of a labor union Make it a condition of employment that the worker shall not join or shall withdraw from a labor union Refuse collective bargaining without justifiable reasons Control or interfere with the formation or management of a labor union, or give financial assistance to a labor union III. Legislation of labor laws in Japan Principles of tripartism • ILO Convention No. 144 (ratified by Japan) “Convention concerning tripartite consultation for promoting implementation of international labor standards” → Each member country shall ensure effective consultations with representative organizations enjoying the right of association. • In Japan, consultations shall be made by the Council formed based on the principles of tripartism (public members, labor members and employer members) • A bill prepared based on agreement (conclusion) of the Labor Relations Commission will, upon approval by the Cabinet, be submitted to the Diet as a cabinet bill, and if passed, it will come into effect. Council related to labor laws Working Conditions Committee Industrial Accidents Insurance Subcommittee Minimum Wages Subcommittee Safety and Health Committee Pneumoconiosis Subcommittee Workers’ Life Committee Small and Medium Enterprise Retirement Allowance Mutual Aid Subcommittee Labor Policy Council Employment Policy Basic Issues Subcommittee Employment Security Committee Employment Insurance Subcommittee Employment of Persons with Disabilities Committee Labor Force Supply and Demand System Subcommittee Human Resources Development Committee Young Labor Subcommittee Equal Employment Committee Industrial Homework Subcommittee From the Council to the Diet Minister of Health, Labor and Welfare Proposition/ Recommendation Submission of bill Labor Policy Council Committee/ Subcommittee Committee/ Subcommittee Committee/ Subcommittee Diet House of Representatives Committee of Health, Labor and Welfare House of Councillors Committee of Health, Labor and Welfare Approval/ Enactment Consultation Cabinet IV. Efforts of labor unions Efforts of RENGO • Before enactment (revision) of laws Hear opinions of subsidiary organizations (industrial labor unions) and regional associations (prefecture-level organizations), and discuss laws to be enacted (revised) for “policy” making. Express opinions at the Council based on the policy to ensure that a bill is consistent with the policy. Approach to the government and political parties, and liaise with and get cooperation from Diet members who agree with the RENGO’s views. • After enactment (revision) of laws Prepare easy-to-understand materials for publicizing new/revised laws. Present the guideline of efforts of each enterprise-based labor union. Efforts of industrial labor unions • Upon enactment (revision) of laws Collect the information about working situation from member company labor union, and prepare its “action policy” to be reflected to the RENGO “policy” Participate/cooperate in efforts for enactment/revision of laws by RENGO • After enactment (revision) of laws Prepare easy-to-understand materials and provide learning sessions to member company labor unions for publicizing new/revised laws. Prepare its “collective agreement revision policy” for making a collective agreement better than new/revised laws. Prepare a model collective agreement, and support/lead each member company labor union to bargain with the employer and to include the provisions of new/revised laws in their collective agreement. Efforts of enterprise-based unions • Upon enactment (revision) of laws Collect opinions from members to reflect them to the policy of its concerned industrial labor union. Participate/cooperate in efforts by RENGO and industrial labor unions. • After enactment (revision) of laws Based on the policy of its concerned industrial labor union, bargain with the employer to conclude a collective agreement consisting with new/revised laws. Monitor if the new collective agreement is complied with. If not, propose bargaining to the employer to correct such noncompliance. For compliance of labor laws • Strict supervisory function by public agencies • Efforts by labor unions Power to bargaining with the employer on equal standing Collective power • Enhancement of organizations solving labor disputes • Education for workers/employers Workers to be familiar with labor laws to be aware of their rights. Employers to be aware of their obligations. V. Current issues related to employment and labor Deregulation trend in labor laws • Japan Federation of Employers’ Association “Employment Portfolio” – 1995, the Japan Federation of Employers’ Association (currently, Keidanren) proposed the employment portfolio. • Three categories of future employment proposed (1) Flexible employment group (2) Highly-skilled professional group (3) Long-term skill-building group • Combine these groups with temporary staffing, contracting, outsourcing and independent contractors properly Government initiative for deregulation • April 2001, inauguration of the first Koizumi Cabinet • April 2001, establishment of the Council for Regulatory Reform • Specific measures in the three-year plan “Major matters in employment/labor area” (1) Review regulations related to private employment placement business (revision of the Employment Security Law) (2) Review regulations related to temporary staffing business (revision of the Temporary Staffing Law) (3) Review the employment insurance system (revision of the Employment Insurance Law) (4) Review the discretionary labor scheme (revision of the Labor Standards Law) Increase of non-regular workers and organization ratio of labor unions 40.0 Number of employed workers (10,000 persons) 4,000 34.3 3,805 3,500 3,000 3,355 24.4 35.0 30.0 25.0 2,500 18.5 20.0 1,755 15.0 2,000 1,500 971 1,000 10.0 500 5.0 0 0.0 Ratio of non-regular 非正規比率 workers 年 2010 年 2008 年 2006 Non-regular workers 非正規労働者 年 2004 年 2002 年 2000 Regular employees 正規労働者 年 1998 年 1996 1994 1992 年 Organization ratio of labor unions (%) 4,500 年 Organization ratio of 労組組織率 labor unions (Source) Up to 2000: Ministry of Internal Affairs and Communications “Labor Force Survey (Special Survey)” (as of February), In/After 2002: Ministry of Internal Affairs and Communications “Labor Force Survey (Detailed Tabulation)” (annual average data) Normal salary amount by age group (2009) 450.0 400.0 350.0 (JPY 10,000) 300.0 Regular employees 正社員 Non-regular employees 正社員以外、有期 250.0 (definite term) 正社員以外・短時間 Non-regular employees 200.0 150.0 (short term) 正社員2005 Regular employees (2005) Non-regular employees 正社員以外、有期2005 (definite term) (2005) 100.0 50.0 Non-regular employees 正社員以外・短時間2005 (short term) (2005) Wage gap (Regular employees = 100) (2009) 100 Male =66 Female =70 80 男性 Male 60 女性 Female 40 20~24 25~29 30~34 35~39 40~44 45~49 Age group (Source) Ministry of Health, Labor and Welfare “Wage Structure Basic Statistic Survey” (2009) 50~54 55~59 60~64 65~69 What is the problem with non-regular workers? Shift from regular employees to non-regular workers to reduce total labor cost ☆Increase allocation to workers ☆Reduce gap among workers Intention of regular employment but not post available ☆Promote recruitment ☆Promote shift to regular employment Step 1 Flexible working style causing unreasonably unfair treatment ☆Promote equal treatment Fair allocation of value added to workers Not motivated due to occasional employment and lack of skill development opportunity No recognition of skill improvement and achievement ☆Enhance skill development opportunity ☆Introduce evaluation system ☆Introduce periodic wage increase ☆Establish fair bargaining ○Labor bargaining, social talks • Request to allocate 1% • Non-regular workers’ request greater than regular employees • First “united front of non-regular workers” “Start with workplace” campaign • Talks with Keidanren • Consultation with temporary employees associations ○Development of laws • Revised part-time labor law • Revised temporary staffing law • Definite-term employment law Step 2 Non-regular employment (shortterm employment) not covered by social security ☆Expand scope of social security Non-regular employment isolated from labor unions ☆Review collective agreements ☆Support in organizing unions ☆Support workers not participating in unions Reallocation of income Step 3 Mutual support ○Review taxation system/ social security ○Establish a law supporting job applicants ○Building collective employeeemployer relationship • United front of part-time workers • Labor consultation Regional union Principle of employment “Direct employment for indefinite term” 28 Current issues • Rationalization of business operations due to diversified labor and increasing international competition expanding gap in working conditions • Population decrease, declining birthrate and aging population • Vulnerable safety net Bankruptcy of Lehman Brothers (September 2008) revealing these issues Democratic Party’s government (August 2009) Can meet expectations of workers/people? Great East Japan Earthquake (March 2011)
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