Ban Golden Parachute/Establish Evaluation Committee
Position on Public Cooperation Reform
(12 November 2002)

At the 16th Central Executive Committee Meeting held on November 8, RENGO endorsed its stance on 46 Special Public Cooperation Reform Bills under submission at the current Diet session. RENGO will respond to the proposed reforms based on three basic ideas: securing independence, ensuring autonomy, and abolishing amakudari*-style personnel practices. RENGO will seek to reform public cooperation into independent administrative institutions with simple, effective, and transparent management responsibility, or into privatized organizations.

(*Amakudari is the practice of high-level government officials stepping into executive posts in private and semi-public firms in the private sector in fields closely linked to their government roles.)

Based on the Special Public Corporation and Other Institutions Basic Reform Law formulated in June 2001 and the Special Public Corporation and Other Institutions Reorganization Plan endorsed by the Cabinet on December 2001, 46 reform bills on 49 corporations are now under submission at the 155th Extraordinary Diet session.
RENGO wants the Special Public Corporation Reform to contribute to the stabilization and improvement of the people’s living standards, and to reform corporations into independent administrative institutions or private organizations with simple, effective, and transparent business responsibilities. To achieve this, RENGO will bring the following basic principles to the current Diet deliberation.

1.Securing Independence, Ensuring Autonomy, and Abolition of Amakudari Personnel Practices
(1) jIn the process of converting over to Independent Administrative Institutions, the basic effects of this reform would secure the independence and autonomy of organizations. Further, amakudari-style personnel practices (including leaving posts to “job-switch”) should be abolished to maintain and strengthen working ethics among workers.
(2) It is essential to establish an evaluation committee to create transparent and easily accessible businesses. The committee will consist of representatives from each sector of public-labor-management and labor unions reflecting a wide range of opinions on business management, etc.

2. Complete Carry Over of Employment, etc.
To eradicate worker anxiety over jobs and living standards, clearly state in each law that job and labor conditions will be carried over from the previous corporations when there are changes to independent administrative institutions in accordance with additional resolutions accompanying the basic law.

3.Enrich the Labor-Management Consultation System
To encourage the healthy development of businesses and operations in reformed institutions, establish a labor-management consultation system where members can gather information on business plans, and raise the level of service and efficiency.
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