On May 24, a breaking news story caught my attention: "The Japan Postal Group Union (JPGU) accepts the top management proposal to reduce the summer and winter paid holidays of permanent employees from three days to one day for each season while fixed-term employees are newly allowed to have one summer and one winter paid holidays instead. Re-evaluation of the paid holiday is a sort of corrective measures in response to the Supreme Court's rulings issued in October 2020 that the disparity in treatment between regular and non-regular employees at Japan Post Holdings was "unreasonable.” In return for making a concession collectively, JPGU demanded a 3,200 yen increase in monthly base salary, and the management accepted the deal. However, it is not a negligible decision that the correction of the disparity to realize the ultimate goal of "equal pay for equal work" ended up with disadvantageous results for regular employees.

Only 6 days before the JPGU news was reported, the labor union at the Institute of Physical and Chemical Research (RIKEN) made an announcement that “97 contract workers whose employment period had exceeded 10 years were laid off.” The termination of employment was, in a way, something that violates the provisions of the revised Labor Contracts Act that came into effect on April 1, 2013. With the enforcement of the Act, fixed-term employees obtained the right to apply for conversion to permanent employment after their total employment period reached over 10 years. However, in the meantime, RIKEN revised its employment rules and set the upper limit of 10 years for the employment term. The RIKEN union responded strongly against its new personnel policies and then, in September 2022, just six months before the “10th year” since the start of the revised Act, the "maximum 10-year employment rule" was eliminated after all. While on the contrary, RIKEN newly introduced a project-based employment system, in which the study goals and the employment period are preliminarily determined, and the researchers are selected through open recruitment. The union criticized the new system, saying, "The application requirements may be arbitrarily controlled by the management and the new system rather aimed at discouraging the conversion to permanent employment.” As it goes on and on, the conflict between RIKEN and the union will continue.

On April 28, the House of Representatives passed the so-called "New Freelancers Law" at the plenary session to better protect freelancers, who are likely to stand in a weaker position, and improve their working environment. The new law explicitly prohibits unfair pay reductions, return of delivered products, and extremely low remuneration. Besides, the new law requires companies or organizations assigning freelancers work to clearly state details of contract terms in a document or an e-mail. Other requirements the law imposes on them include, pay to freelancers within 60 days after the delivery and creation of consulting system to work against acts of harassment. But then, some social security-related issues are left untouched, such as workers' accident compensation insurance and health insurance. Also, the new requirements apply to small and mid-sized companies, which were not covered by the existing Subcontract Act (Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors) and their burden are increasing significantly. In short, it is necessary to establish comprehensive measures and policies that align with the employment situation of the times.  

All of the above-mentioned recent labor issues reflect certain aspects of "workstyle reform." First of all, what is aimed by the government to "reform" the working system for people? Obviously, the anticipated goal is the steady growth through industrial restructuring. Promotion of job-based employment, lifting bans on side jobs, encouraging entrepreneurship and reskilling (relearning), etc. are all highlighted here and there under a rallying cry of the "diverse work styles" to enhance the momentum for higher fluidity of labor markets. And yet at the same time, policies to support the conversion of non-regular workers to regular workers are implemented. As seen in the Japanese traditional lifetime employment system, dismissals of permanent employees are still strictly regulated. Apparently, something incoherent and incomplete is felt when we take a close look at individual labor policies, which accordingly makes us inactive to develop positive discussions to build up a secure safety net. The bottom line is that we need an open discussion to be held beyond political parties, affiliations, and ministries’ interests toward the fulfillment of a society that leaves no one behind.

This Week’s Focus, May 26

Takashi Mizukoshi, the President