Common Sense of Crisis on 'Takenaka Plan' RENGO-Keidanren Summit Meeting (6 December 2002)

On the morning of December 5, RENGO and Nippon Keidanren (Japan Business Federation) held a joint summit meeting in Tokyo, the second since last September's summit. Attendees included President Sasamori, nine Vice Presidents and General Secretary Kusano from RENGO, as well as Chairman Okuda, Vice Chairman, the Board of Councilors Vice Chairman, six Committee Chairmen, and Keidanren Senior Managing Director Yano. RENGO and Nippon Keidanren agreed that labor and management will work together to realize the contents of government-labor-management agreement on job problems, that they share a common sense of crisis over the Takenaka Plan, and also that along with labor and management they will watch the government's actions. President Sasamori emphasizes that Govt.-Labor-Mgmt Agreement is "premised on maintaining jobs." (Dec. 5, Tokyo) President Sasamori gave a speech at the outset. He explained how the December 4 government-labor-management agreement on employment problems was reached saying "(it was) based entirely on the premise of maintaining employment." On the issue of reducing employment costs, Sasamori demanded that "(management) keep job maintenance foremost in our minds and not lower labor conditions lightly." Sharing his opinions on Spring Struggle targets, he said, "Wage differentials and regional inequalities are expanding. We will be stressing a raise in wage levels." Furthermore, he requested that management take a sincere response to individual demands for increases in basic pay, as well as positive counter-measures against non-paid overtime. JBF Chairman Okuda offered a perspective on the Japanese economy by saying that there is great concern over decline. At the same time, he pointed out that if the Takenaka Plan "were conducted literally, it would be a tremendous blow to the business world, creating massive corporate bankruptcy and joblessness." Furthermore, he stated that in order to materialize the contents of the agreement, "the challenge is to pick out and solve problems so that the Japanese economy will have a bright future with labor and management working together." Then both sides presented issues. JBF Senior Managing Director Yano discussed proposals including the revitalization of industries and emergency job measures, at the same time he explained the background of the government-labor-management agreement and its contents. Afterwards, RENGO General Secretary Kusano raised issues based on RENGO's ideas for budget-making for the next fiscal year, a survey of unemployed workers conducted in front of Hello Work offices (public employment offices), and a survey of the current living conditions of workers. During the opinion exchange, RENGO Vice Presidents voiced their opinions on the state of effectiveness of the government-labor-management agreement, the Spring Struggle, wages, how to thoroughly inform small to mid-sized businesses of the agreement, economic recovery, and employment measures. Each of Keidanren's Vice Chairmen remarked on economic conditions and employment, globalization and international competitiveness, the Spring Struggle, antitrust laws, China issues, foreign workers, and so on. Meanwhile Senior Managing Director Yano stated that they want to familiarize affiliated businesses and organizations with the agreement under a structured schedule. In closing, Keidanren Chairman Okuda while reminding participants that "it is still too early to say as the Takenaka Plan is still unclear," he disclosed a sense of crisis by adding, "we should stop the plan if some huge changes like unemployment and corporate bankruptcy occur. We must resist completely, not just implement measures, or it will be disastrous." After Chairman Okuda's decisive response, RENGO President Sasamori emphasized that "job problems will not improve under the Takenaka Plan. We share the view of Chairman Okuda." He then stressed that "Labor and management should seriously consider a joint action urging the government to improve," and closed the summit meeting.

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