August 26, 1999

Kiyoshi SASAMORI
General Secretary
Japanese Trade Union Confederation (JTUC-RENGO)

The current outline for the bill for civil affairs recovery contains major improvements. However, two important problems await solutions that this bill can, but does not, provide.

One is to enforce countermeasures to assure credit for wages. In the outline, the wage is placed as a prior credit, but the priorities among the credits including the tax are not clear. As credit for the wages is not considered common credit, it is not assured in the event of a bankruptcy.

Secondly, regulation of business transfers. When you transfer business after the new deal has started, it should be clearly written in the matters of approval by the court that business transfer should be done only when the business continues.

The bill for the recovery for the civil affairs will be proposed to the National Diet in the fall after it is approved by the legal council on August 26. RENGO will demand that this bill rebuild the small business which were not rescued by the law which supports bankrupt businesses and improves labor credit. We will also demand the Diet give this bill thorough and proper discussion. And we plan to insist the government speed up reforming the laws affecting bankruptcies.