The Legislative Committee of the Ministry of Justice has organized a "Bankruptcy Legislation Workshop" to reappraise bankruptcy legislation in its entirety, and is proceeding with a study of "New Reconstruction Procedures" which mainly cover small to mid sized businesses.
RENGO held the 24th Central Executive Committee Meeting on May 20 ratifying its "Current Plan for the Study of the 'New Reconstruction Procedures' for Bankruptcy Legislation," primarily for the draft the Ministry of Justice presented.

[Principles and Strategies Regarding the Draft]

1) In that recently reconstruction of many businesses is being performed through extra-legal liquidation, RENGO basically supports new bankruptcy legislation that will promote business reconstruction and which is intended mainly for small to mid-sized companies troubled with securing labor credit.


However, the new system must resolve basic problems such as securing workers' rights and wage credits, the participation of workers in reconstruction procedures, and the establishment of an effective system to properly cope with current bankruptcy conditions.

2) Further, certain concerned parties are lately advocating that along with the preceding, the process of dissolution should be promoted collectively, that is to say, transferring/regenerating parts of a business while liquidating other parts.
We can in no way accept this because these liquidation/dissolution procedures differ significantly from the original intent of the new system and worker protection legislation for company assignments and M & A have not yet been established.

(1) The beginning of reconstruction procedures (2) Management rights and asset management as it occurs in reconstruction (3) The handling of labor credits et. al. (4) Reconstruction plans and the participation of labor unions (5) Business transfers etc.

Photo: Participants listened to each party representative's ideas, May 19.

On May 19, at Seiryo Kaikan in Tokyo, RENGO, Nikkeiren (The Japan Federation of Employers' Association) and the National Federation of Health Insurance Societies organized "the National Forum For Drastic Reform of the Medical Care System."
RENGO and other organizations decided to hold a national forum in response to a shared sense of crisis over the extremely unclear movements surrounding medical care reform. Their concerns included the proposed draft to reform the prescription drug system that had been compiled from discussions at a Ministry of Health and Welfare council and was abandoned by the Liberal Democratic Party under influence of the Japan Medical Association. Participants filled the hall to hear the congress member's ideas from each political party on drastic reform of the medical care system.

Photo: The audience joined in with the heartfelt performances, May 15.

"The Sound Wave 1999" a nation-wide music festival from local workplaces was held by the Institute of Labor Education and Culture (ILEC) at "ABC Hall" in Tokyo on May 15. 120 contestants from 21 groups enthusiastically performed.