February 10, 2000

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

As a result of the adoption of a supplementary resolution to conduct a study on legal measures concerning reorganisation of corporate organisation at the diet, which RENGO had demanded, the study group was established last December. At the time the diet was deliberating on a bill of special measures for the revitalisation of industrial power.

In recent years, some legislation which has promoted reorganisation of corporations has been introduced. Upon completion of this series of legislation, it is planned to submit a draft revision of the Commercial Law Act which will allow dividing a company. Rengo has demanded an amendment to include prior consultation with trade unions in the draft revision of the Commercial Law Act. It also has demanded an immediate enactment of the workers' protection law and asked for an appropriate investigation by the study group of the Ministry of Labour.

The content of this report of the study group which is announced today is too far from RENGO's demands, and the workers' protection law. Although the report of the study group proposes the maintenance of the labour agreement and protection of the labour contract as a legal measure for workers' protection when the company is divided, it is lacking a fundamental element such as a ban on dismissal due to reorganisation of enterprises, prior consultation with trade unions, etc. There are a lot of problems remaining including workers' right of consent. Furthermore, the report avoids proposing legal measures for transfer of management, which is the most effective way of reorganisation of corporate organisation and has caused many labour problems. The report merely indicates that there is a problem of legal protection.

The trend to reorganise enterprises in Japan will be accelerated due to this year's discussions at diet to revise the Commercial Law Act which will allow direct division of the enterprises in addition to an expansion of management transfer and the removal of a ban on pure holding companies which has been in place in recent years. Workers' protection laws on the occasion of corporate restructuring are enacted in European Union. Compared to European Union, it is obvious that our legislation is unsatisfactory. Improvement of the legislation is one of the most important tasks at this session of diet.

RENGO demands the government draws up an appropriate workers protection law. It should not be limited to the contents of the report by the study group. RENGO strongly calls for the enactment of a workers' protection law on the occasion of corporate restructuring with the support and co-operate political parties including the Democratic Party.