Japanese Trade Union Confederation (RENGO)

Joint Declaration for Improving the Treatment of Dispatched Workers and Contract Workers and for Promoting the Proper and Sound Operation of Dispatch Businesses and Contracting Businesses

The Japan Production Skill Labor Association (JSLA) and the Japanese TradeUnion Confederation (RENGO) have had consultations several times on the demandsand the issues that each organization has and faces for improving the treatmentof dispatched workers and contract workers and for improving the proper andsound operation of dispatch businesses and contracting businesses.

Concerning worker dispatch and contract work, such an issue as violationsagainst related laws as seen in the so-called faked contract work and the dispatchto prohibited categories of work by some businesses has occurred. At the sametime, work-related accidents caused by inadequate personnel management and deficientoccupational safety and health measures have increased over the years. Moreover,due to the production adjustment forced by global economic recession, many dispatchedworkers have lost their jobs and many destitute workers have appeared one afteranother, which have led to pose a severe question on how the worker dispatchsystem and the social safety net are working. With these issues in mind, thesocial safety net has been expanded by revising the Employment Insurance Lawand a new bill for revising the Worker Dispatch Law is now being discussed inthe Diet.

However, in order not to repeat the problems caused so far and to aim at improvingthe security of employment and the treatment of dispatched workers and contractworkers as well as at promoting the proper and sound operation of such businesses,it is necessary for both dispatch (staffing services) agencies and user firms(firms hiring dispatched workers) to make constant efforts not only for thoroughgoingcompliance with the laws and regulations but also for substantial protectionof the rights of dispatched workers and contract workers, setting the stagefor upgrading their skills and excluding crooked operators by means of spreadingthe efforts to the whole society.

From such a view point, JSLA and RENGO have had frank discussions and havecome to confirm the efforts that each organization should make in respect ofthe difference of the position of each organization, as shown in the below.From now on, each organization will make efforts for implementing the confirmationof this declaration in member organizations of each organization and strivesfor spreading them socially.

Taking this opportunity of consultation, JSLA and RENGO will continue to consultwith each other as the occasions may demand and make efforts for creating anenvironment in which dispatched workers and contract workers do not feel illat ease in their life.

I. Efforts for Putting a Brake on the Aggravation of Employment andTreatment of Dispatched and Contract Workers

1. JSLA's efforts

1. Concerning "The Declaration on Corporate Social Responsibility" (Referto the attached) which was announced in October 2009 as action guidelines tobe tackled by each member company, JSLA will make efforts for spreading theDeclaration so as to make its action guidelines more effective.
2. JSLA will make efforts for securing employment opportunity for dispatchedworkers not to lose their employment when they terminate their employment inthe firm hiring them through securing a new hiring firm or through promotingdirect employment by the firm.
   
   As to the compensation paid by a hiring firm to a dispatch agency in casethe cancellation has occurred before expiration of a contract, due compensationto the dispatched workers will be made through thoroughly abiding by the notificationissued by the Ministry of Health, Labor and Welfare (The Guideline for theMeasures to Be Taken by Both Dispatch Business and Hiring Business : revisedon March 31, 2009).

2. RENGO's efforts ( and the efforts to be made by the trade unionor any other organizations in the firm hiring dispatched workers)

1. In hiring dispatched workers, RENGO and the trade union in the firm hiringdispatched workers will demand the firm, through labor-management consultationbetween the management and the trade union, to abide by the laws and regulationsrelated to dispatch work (Worker Dispatch Law, Industrial Safety and HealthLaw, Workmen’s Accident Compensation Insurance Law and other related laws)and to apply social and industrial insurances.
2. RENGO and the trade union in the firm will promote labor-management consultationon the inspection on and improvement of the working conditions of dispatchedworkers during their dispatched period.
3. RENGO and the trade union in the firm will demand the firm to take appropriateprocedures in case the firm’s obligation to the application of employmenthas occurred.
4. RENGO and the trade union in the firm will demand the firm to pay compensationto the dispatch agency and to secure a new employment opportunity for dispatchedworkers, in case the firm has no option but to cancel dispatch contract duringthe contract period.

3. Joint efforts

1. From a view point of excluding crooked operators, JSLA and RENGO willexamine how the laws should be revised so as to change notification systemto licensing system in the specific dispatch businesses, to make requirementsfor business licensing strict, and also to make requirements for penaltiesand business revocation severe.
2. For a more severe and stable application of the Workers Dispatch Law,JSLA and RENGO will examine the clarification of administrative interpretationsand how the uniform application of the law could be made.

II. Efforts for Improving the Treatment of Dispatched and ContractWorkers and for the Proper and Sound Operation of Dispatch Businesses

1. JSLA's efforts

1. Concerning "The Declaration on Corporate Social Responsibility" (Referto the attached) which was announced in October 2009 as action guidelines tobe tackled by each member company, JSLA will make efforts for spreading theDeclaration so as to make its action guidelines more effective.
2. With "Career Development Committee" of JSLA as the central body, JSLA willmake efforts for career development and occupational trainings and examinea creation of the pay raise system and promotion system according to jobs andexperiences and other systems.
3. By periodically holding such courses and seminars as those on compliancewith the laws and regulations and on the protection of workers among membercompanies and within a member company, JSLA will unflaggingly implement activitiesfor raising awareness on the management with thorough compliance.
   
   Moreover, JSLA will tackle to make itself a standard of soundness by buildingup a system to certify the proper firm, specifically by building up a systemof compliance and a system which aims at taking the lead of human resourcesdevelopment.

2. RENGO's efforts (and the efforts to be made by the trade unionor any other organizations in the firm hiring dispatched workers)

1. From the view point of the trade union in the firm hiring dispatched workers,RENGO and the trade union in the firm will promote inspection activities forsetting the rate of dispatch charge secured by a wage level not lower thanstatutory minimum wages and by employment insurance premium and commuting expensespayment.
2. RENGO and the trade union in the firm will demand to make it easier forthe dispatched workers to access to social service facilities at the workplacein the firm. Both trade union organizations also demand to improve the occupationalsafety and health management system of the firm (proxy service of medical check,measures for healthy and safe workplace and others).
3. In order to realize a fair and equal treatment, RENGO and the trade unionin the firm will examine how the movement for an arrangement of work rule andthe struggle for better working conditions are promoted in the labor-managementrelationship in the firm.
4. RENGO will promote the establishment of trade unions in dispatch agenciesand the participation of dispatched workers in the trade unions.

3. Joint efforts

1. JSLA and RENGO will examine how a fair business environment should be,so that the dispatch businesses and contracting businesses which grapple withcompliance with the laws and regulations may not be subordinated in competition.At the same time, the two organizations will consult and examine with eachother from various points of views to set the rates of margin and dispatchcharge which enable to secure the wage level of dispatched and contract workers,their social and industrial insurance premium and commuting expenses payment.
2. JSLA and RENGO will examine how the framework of cooperation of dispatchagencies and client firms should be for the career development of dispatchedand contract workers.
3. JSLA and RENGO will examine the measures which contribute to improvingthe welfare of dispatched and contract workers.
4. JSLA and RENGO will examine policy matters in promoting a fair and equaltreatment of dispatched workers with the workers in the firm hiring them.
5. Efforts will be made for gaining an understanding on the trade union activitiesin each member company of JSLA.

III. Concerning Future Consultation between the Two Organizationsand Others

Taking this opportunity of consultation, JSLA and RENGO will strive, fromtheir own point of views and positions, to get their own organizations readyfor future continuous consultations to be conducted on the issues related todispatched and contract workers.

April 26, 2010

Tadao SHIMIZU
President
Japan Production Skill Labor Association (JSLA)

Hiroyuki NAGUMO
General Secretary
Japanese Trade Union Confederation (RENGO)