Although referring to "the third approach" different from the European or American way, the Report keeps to the repression of the total labour cost at the industrial and enterprise level in order to strengthen the international competitiveness. It proposes the structural adjustment only with a cut in labour cost, lacking the definite analysis of the current economic situation and the prospect of the economic revival. It injures the mutual trust between the social partners and it is the abandonment of the employers' responsibility.

Rengo's comments are based on the following analysis of the Report:

1. It lacks the definite analysis of the current Japanese economy which is now standing at the turning point and it does not adequately answer to a question how to avoid the deflation spiral.
2. It does not sufficiently focus on the macro economy with a greater emphasis on the micro. This implies the abandonment of the employers' responsibility.
3. The wage-repression principle only ignores a fact that the recent recession is caused by a slow increase in consumption. This will even bring about the vicious cycle lowering the consumers' mind.
4. The Report should have re-examined the easy floating-employment policy and recognised the strength of Japanese enterprises which is the human resource investment through stable employment relations.
5. Enforcement of the market principle without fair rules will only bring about a social crisis. An enterprises denying reasonable wage increase, shortening working time and employment stability can be nowise a social safety zone.