Shinichi Hasegawa. Efforts to Establish Constructive Industrial Relation and Prevent Unnecessary Industrial Disputes
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1 Efforts to Establish Constructive Industrial Relation and Prevent Unnecessary Industrial Disputes Shinichi Hasegawa Executive, JILAF 5 August, 2014 Bangkok
2 1. What is Constructive Industrial Relations? 2. Trade Unions in Japan 3. Industrial Relations in Japan 4. Towards Constructive Industrial Relations Annex
3
4 In September 2009, trade union leaders from Asia and the Pacific gathered in Singapore for the ITUC-AP Conference on Industrial Relations. They adopted a definition of constructive industrial relations. 4
5 Constructive Industrial Relations Defined by ITUC-AP On the basis of full recognition of the operations of trade unions in compliance with the ILO Conventions 87 and 98 in pursuit of Decent Work and common welfare, and in a stable political climate where social partners can operate without fear of reprisal; the parties concerned share a common interest in labor standards, performance of business, conditions of national economies, industries and the labor market; and share the principle of fair distribution of output to stakeholders. 24 Sept ITUC-AP 5
6 The Definition ITUC-AP s Framework Decent Work Principle of Fair Distribution Common Interests Workers Rights Partnership 6
7
8 History of Japanese Labour Movement From Meiji Restoration to End of World War II ( ) Roudoukumiai kiseikai(1897) The organization for promoting to form unions Yuaikai(1912) The grass roots of a national center Yuuai: fraternalism National wealth and military strength and increase of production and promotion of industry militarism Labour movement under suppression Period of Reconstruction (1945 late 1950s) Trade Union Law (1945) Enterprise-based unions, mixed trade unions of white and blue-collar workers Struggle for democratization of industrial unions: From political struggle to economic struggle Start of spring offensive (1955) < Collective bargaining> 1970s- Japanese Trade Union Confederation(1989) total member of 7.6 million 8
9 Present State of Trade Unions in Japan Employment Situation in Japan (January 2014) Labour force participatio n rate (B/A) 58.8% No. of unemployed 2.38 million persons (3.7%) (60.9% men, 39.1% women) Employed million persons (57.2% men, 42.8% women) Primary industries 2.9% Secondary industries 25.9% Tertiary industries 71.2% Family workers/ Self-employed 6.86 million persons (10.0%) Workers on leave 280 thousand persons (0.4%) Employees million persons (88.6% of employed) Unorganized workers (82.3%) million persons Total population million persons 15 and over population (A) million persons Labour force (B) Ratio of workers by industry Status in employment Sources: Ministry of Internal Affairs and Communications, Population Estimates, Labour Force Survey; Ministry of Health, Labour and Welfare, Labour Statistics, Basic Union members 17.7% Organization rate 9
10 Trends in Employment Structure by Industry (Three Sectors) Primary industries Secondary industries Tertiary industries 100% 90% 80% 70% % % % 30% 20% 10% % (year) Sources: Statistics Bureau, Ministry of Internal Affairs and Communications, National Census Report, Labour Force Survey, Employment Policy Study Group, Labour Force Supply-Demand Outlook and Problems (2010)
11 (1,000 persons) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Number of union members Organization rate (%) Fiscal year Source: Ministry of Health, Labour and Welfare, Labour Statistics, Basic Survey on Labour Unions 11
12 Composition of Japanese Trade Unions (2013) RENGO million (67.9%) Zenroren million (6.0%) Zenrokyo million (1.1%) Unaffiliated unions million (25.0%) No. of trade unions (total) 25,532 No. of union members (total) 9,875,000 <69.3% men, 30.7% women> Organization rate (total) 17.7% (The graph shows a breakdown of the number of union members, totaling 9,821,000 persons, by category based on applicable labour laws.) National and local public employees, etc. 1,478,000 (15.1%) Private company employees 8,343,000 (84.9%) Source: Ministry of Health, Labour and Welfare, Labour Statistics, Basic Survey on Labour Unions 12
13 ITUC ITUC-Asia Pacific <Related Org.> RENGO-RIALS JILAF ILEC JLCF WORKNET Taishokusha- RENGO RENGO Convention Central Committee Meeting Central Executive Committee Meeting RENGO-Locals Local Councils Local Unions Division of Local Councils Enterpris e-based Unions Technical Committee, etc. Industrial Unions Conference of Local- RENGO Representatives Local Org. of Affiliates Special Affiliates Independent affiliated members Enterprise-based Unions Members 13
14 RENGO dues (monthly) Average Level of Union Dues, etc. (Organizations affiliated with RENGO, October 2008) 90 per member 108 to RENGO-Local Industrial federation dues (monthly) Union dues (monthly; collected by each union) 593 per member 4,917 per member (1.63% of ave. wage of 298,762) Main expenditures (enterprisebased unions) Source: Budget (average) Personnel expenses 33.5% Dues to higher organizations 12.3% Activities expenses, etc 54.2% RENGO Research Institute for Advancement of Living Standards. 14
15 Function and Role of Japanese Trade Unions 1. UNIONIZATION All trade unions have to make efforts to increase the number of members. 2. STRUGGLES FOR IMPROVEMENT OF WORKERS WORKING CONDITIONS Industrial unions and company-based unions have responsibilities for improvements. RENGO has to coordinate the environments and strategies for the industrial unions and company-based unions. 3. DEMANDS FOR IMPROVEMENT OF NATIONAL POLICIES AND SYSTEMS RENGO has accountability for improvements. The industrial unions have to take part in the various activities conducted by RENGO. 15
16 WHAT IS SHUNTO? Shunto, the spring labour offensive, is the collective bargaining conducted between company-based unions and management to improve workers working conditions in springtime in Japan. It started in1955. Most company-based unions conduct demands, negotiations, and settlements intensively during a certain period in spring (February May). Advantages of Shunto are as follows: Strengthening of unions negotiating power by having collective bargaining nearly simultaneously. Establishment of a general market of average standards of working conditions. Sharing information between labour and management. 16
17 Private companies Flow of Shunto Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Policy decision on labour s demands (Rengo) Policy decision on labour s demands (industrial organizations) Submission of written demands (company-based unions) Negotiations Settlement (unions in large companies) Settlement (unions in small and medium-sized companies) 17
18
19 Labour-Management Relations in Japan (Focusing on Enterprise-level Labour-Management Relations) Enterprise-level Labour-Management Relations in Japan Trade Union Confrontation Collective bargaining Cooperation Labour-management consultation system Management Government (Labour legislation system) Basic character of labour-management relations... confrontation (distribution) Characteristics of Japanese-style industrial relations Combination of confrontation (fair distribution) and cooperation (productivity improvement) Sharing of basic goals (development of company and stability and improvement of employment and livelihood) 19
20 1) Productivity Increase Movement Japan Productivity Center (1955) Realization of mutual agreement and cooperative relations between labour and management National Labour Union Productivity Council (1959) 2) Three guiding principles of productivity 1. Maintenance and expansion of employment 2. Labourmanagement consultation and cooperation 3. Fair distribution of productivity gains (companies, workers, consumers) 20
21 Automatic equipment 21
22 Essential Principles of ME Agreement 1. A Motor co. must not dismiss employees due to the introduction of the new technology. 2. When job transfer of union members is needed due to the introduction of the new technology, A Motor Co. must consider carefully their aptitudes and capabilities and provide them training necessary. 3. A Motor Co. must not downgrade assessment of replaced workers at least for a year 22
23 Preamble A Motor Co. and A Workers Union conclude this agreement which aims at eternal development of the company, employment security and improvements in the standard of living for workers by working together on productivity increase and establishing a wholesome labor-management relationship by fulfilling each responsibility while standing on equal footing. 23
24 Labour-Management Consultation System Labour-Management Consultations at Enterprise Level (Example) Topics Participants Frequency Central Labour-Management Consultation Committee Management policy Annual plan Top officials of labour and management 2 3 times/year Subcommittees, special committees Production plan Business, sales Overseas project Welfare Labour and management officers in charge 2 3 times/year each Plant-level committee Plant/Business place management policy Top labour and management officers at plant level Once a month Workplace labour-management meeting Workplace problems Workplace labourmanagement representatives Once a month 24
25 Differences Between Collective Bargaining and Labour-Management Consultations Objective Relations between labour and management Topics Agreement between labour and management Industrial action, etc. Basis for establishment and operation Collective bargaining Fair distribution of results (pie) (Improvement of working conditions) Conflict of interests regarding distribution Employment, wages, labour conditions Must reach a conclusion 1 Seek conciliation, mediation, etc. 2 Industrial action Legislation (labour law) Labour-management consultations Increase of results (pie) (Improvement of productivity) Cooperation for mutual benefit Management policy, management issues Efforts by both sides to reach agreement are important. Collective agreement 25
26
27 The Two Channels in the AP Framework Decent Work Collective Bargaining Principle of Fair Distribution Workers Rights Common Interests Partnership Labor- Management Consultation System 27
28 Issues of the Two Channels Collective Bargaining Fair distribution of outputs Employment Wages Working hours Other labor conditions Labor-Management Consultation System Increases in outputs Management policy Productivity increases Human resource development Occupational Safety and Health Other issues 28
29 Toward Decent Work Employment Security and Creation Social Dialogue Basic Rights at Work Social Security Gender Equality <The ILO s Five Strategic Objectives> 29
30 Trade Union Actions Toward Constructive Industrial Relations 1 - From experiences in Japan - Win-Win relation between employers and trade unions Mutual trust between employers and trade unions is crucial Longtime efforts are necessary. Rome was not built in a day Gradual, step by step development Understanding by tripartite people on the importance of constructive industrial relations 30
31 Trade Union Actions Toward Constructive Industrial Relations 2 - From experiences in Japan - 1. Power up! - Unionization- increasing union members - Strengthening organizational basis *stable and sustainable management by collecting union fees properly *Improving union leaders ability 2. Frequent, frank and deep communication with employers 3. Effective collective bargaining - Priorities-oriented and achievable request and deep negotiation - Support from other unions and the society - From struggle-centered movement to dialogue-centered movement 31
32 We will move towards Decent Work through Constructive Industrial Relations. 32
33
34 Reference: Figure 1 Population Trends in Japan Population (10,000 persons) Actual figures (National Census, etc.) Estimates as of 2012 (Japan s Future Estimated Population) Share of working-age population (15 64 years) 12,806 11,662 Population aged years Old-age ratio (share of people aged 65 years or over) 63.8% (2010) 23.0% (2010) 3,685 6,773 Population aged 65 years or over 8,67 4 3,46 4 Share of workingage populatio n 50.9% Old-age ratio 39.9% Population aged 14 years or under Total fertility rate 4,41 8 Total fertility rate (2010) 1, Source: Ministry of Internal Affairs and Communications, National Census and Population Estimates; National Institute of Population and Social Security Research, Japan s Future Estimated Population (estimates as of January 2012): Mean Birth and Mean Death Estimates (current population as of October 1 of each year); Ministry of Health, Labour and Welfare, Demographic Vital Statistics 34
35 Trends in Regular Workers and Non-regular Workers Nonregular employment increased from 1995 to 2005 and has risen slightly since then. (It now accounts for 36.7% of all employees, excluding directors.) The most recent figures (December 2013) show the number of nonregular workers to be million persons (37.5%). Regular employment declined from 1995 to 2005 and has remained just about level since then. Ministry of Internal Affairs and Communications, Labour Force Survey (Basic Totals) (February). Monthly releases began in January Seasonal fluctuations need to be taken into account. (10 thousand) 16.4% 20.2% 26.0% 32.6% 33.0% 33.5% 34.1% 33.7% 34.4% 35.1% 35.2% 20.9% (+70) (+44) (+57) (+30) (-38) (+36) (+2) (+48) 36.7% Nonregular (+93) Part-time workers 928 (+40) (48.7%) Regular Temporary workers 392 (+39) (20.6%) 1985 (-35) (+40) (+34) (-39) (-15) (-21) (-22) (-12) (-46) Source: Figures up to and including 2000 from Ministry of Internal Affairs and Communications (previously called the Management and Coordination Agency), Labour Force Survey (Special Survey) (conducted in February); figures from 2005 to 2013 are annual averages from Ministry of Internal Affairs and Communications, Labour Force Survey (Detailed Totals). Notes: (1) Figures and ratios from 2005 are calculated from the estimated population (new standard) based on the definite population of the 2010 National Census. (2) The figures, ratios, and change from previous year for 2011 are calculated using complementary estimates for the three prefectures most severely affected by the Great East Japan Earthquake. (3) Employment pattern categories refer to how the worker is called in the workplace. Dispatch workers 116 (+26) (6.1%) Contract and fixed-term workers 388 (+34) (20.4%) Other 82 (-46) (4.3%) 35
36 RENGO Action Policies SLOGAN Let us say No to inequality and create a secure society through solidarity with all working people! Action Policies 7 Strengthening International Activities for Realizing Sustainable Societies through Fair Globalization Promoting core labour standards and decent work Encouraging the social responsibility of multinational enterprises Promoting development cooperation for the eradication of poverty Protecting and establishing human rights, trade union rights and democracy Joint actions with international trade union organizations, regular consultations and exchanges with overseas trade unions 36
37 RENGO Action Policies Promoting core labour standards and decent work 1. To build a society where anyone can live with hope and a sense of security and realize decent work for everyone, JTUC-RENGO will promote and enhance the concept of decent work, as advocated by the ILO. 2. As a part of international solidarity activities to promote decent work, JTUC-RENGO Headquarters and local RENGOs will cooperate with Global Union Federations (GUFs) to participate in the ITUC s World Day for Decent Work (October 7 th ) 3. In order to contribute to the realization of decent work in Asia and the Pacific, JTUC- RENGO will cooperate with the ILO and actively participate in and support the activities of ITUC-Asia Pacific (ITUC-AP). 37
38 Thank you for your attention! ARIGATO!!!
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