Japanese Trade Union Confederation (RENGO)

RENGO/JCCI Summit Held

Agreement that “Govt. Pension Reform is Fiscal Posing, not Reform”

On March 18, RENGO held a summit meeting with the Japan Chamber of Commerce and Industry (JCCI) in Tokyo. The exchange of opinions focused on three policy issues: "pension system reform," "employment measures for young people," and "measures for local economies/small-and-medium-sized enterprises" and RENGO called for joint labor/management responses for those issues. RENGO agreed with the JCCI on pension system reform recognizing that the "Government's pension reform draft is merely a posture to make it fit fiscally without radical reform." Attendees from RENGO included President Sasamori, Vice Presidents, General Secretary Kusano, and Assistant General Secretaries. Attending from the JCCI side was Chairman Yamaguchi, Vice Chairpersons, President Uematsu, and chairpersons from related committees.

Speaking on the current Spring Struggle, RENGO President Sasamori said that “we want those results obtained by the major preceding unions who have already concluded negotiations on March 17 to be reflected in the negotiations by small-and-medium-sized/local unions who will face their peak negotiation period from March 22 to 24.” He also pointed out that “it was the massive sacrifices and contributions by the workers that laid the background for recent business recovery” and asserted that “management should secure employment and put back its fair share of the improvement in business performance in the form of new jobs and working conditions.” Likewise, he said that “Companies should maintain the principle of employee sovereignty, which places the highest value on human beings.” Sasamori also touched on such topics as “social security policies,” “working conditions for atypical workers,” “rampant unpaid overtime,” “improvement of the job situation,” “revitalization of small-and-medium-sized enterprises,” and the “fortification of local economies.”

In response, JCCI Chairman Yamaguchi said that “99% of JCCI’s members are small-and-medium-sized enterprises. While it is been said that the Japanese economy is changing for the better, many of those businesses are in fact still struggling.” He emphasized that severe circumstances still continue; “of course workers are important but the truth is that if the small and medium-sized enterprises cannot secure management they will not be able to secure workers either.” Chairman Yamaguchi asserted that it is crucial to strengthen small-and-medium-sized enterprises while at the same time stimulating domestic demand in the economy.

Afterwards, RENGO and JCCI exchanged opinions on the three policy issues. RENGO criticized the government’s draft on pension system reform saying that “it doesn’t rate being evaluated as drastic reform” and called on the JCCI citing the need to cope with this issue jointly between labor and management. Although they were in accord in recognizing that the “government’s draft is fiscal posing and not drastic reform”, the JCCI showed strong concerns over the idea of extending employee pension application to part-time workers and others saying that they “cannot bear the increase of burden.” RENGO asserted that the purpose of “extending applications was not to collect financial reRENGO emphasized the following for employment and labor policies; “what is crucial is how we put employment measures into action for young people” and “rampant overtime without pay is an infringement on the Labor Standards Law. There are cases of karoshi [death from overwork] due to being forced to work long hours. The JCCI needs to treat this as a serious issue and put forth effective efforts to resolve it. Likewise, labor and management should both treat rampant overtime without pay as the grave issue that it is.” The JCCI responded by saying; “the increase in freelance part-time workers is a structural phenomenon but we do not think it is a good thing. We are now offering job-search services utilizing the internet and want to support a domestic version of the dual system (vocational training through cooperation between businesses and schools)” and “we should realize that the fact of the matter is extending employment until 65 years of age is an issue which will also have an impact on the employment of young people.”sources but rather to establish workers pension rights” and asked the JCCI for its understanding of the concept.

RENGO emphasized the following for employment and labor policies; “what is crucial is how we put employment measures into action for young people” and “rampant overtime without pay is an infringement on the Labor Standards Law. There are cases of karoshi [death from overwork] due to being forced to work long hours. The JCCI needs to treat this as a serious issue and put forth effective efforts to resolve it. Likewise, labor and management should both treat rampant overtime without pay as the grave issue that it is.” The JCCI responded by saying; “the increase in freelance part-time workers is a structural phenomenon but we do not think it is a good thing. We are now offering job-search services utilizing the internet and want to support a domestic version of the dual system (vocational training through cooperation between businesses and schools)” and “we should realize that the fact of the matter is extending employment until 65 years of age is an issue which will also have an impact on the employment of young people.”

Expressing its opinion on policies for local economies/small and medium-sized enterprises RENGO said that “there are some cases where small-and-medium-sized enterprises have been revitalized through the creation of local networks. We hope that the JCCI will show strong leadership at localities so that those enterprises can be revitalized.” Responding to RENGO’s statement the JCCI replied by saying “economic revival has been limited to only a few regions and businesses and we will not allow ourselves to become complacent. As for financial assistance, the banks' credit crunch/withdrawal continue and the key is how best to break through the “liquidity trap” in finance. We think the greatest problem lies in supporting the rejuvenation or re-creation of businesses and we want to proactively support such activities.” Then the meeting was closed.