Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Employment Policy Convention, 1964 (No. 122) - Japan (Ratification: 1986)

The Committee notes the Government’s report received in October 2011, which includes replies to its 2010 observation. The report also included observations from the Japanese Trade Union Confederation (JTUC–RENGO) and replies to the observations submitted by the Japan Postal Workers’ Union (YUSANRO) in October 2010. The Committee further notes the observations made by the National Confederation of Trade Unions (ZENROREN), which were forwarded to the Government in September 2011. It finally notes the supplementary remarks submitted by YUSANRO, which were forwarded to the Government in June 2012.

Article 3 of the Convention. Participation of the social partners in the formulation of employment policies. In reply to the Committee’s previous comments, the Government indicates that opinions expressed at relevant committees have been reflected in the planning and drafting of employment policies. JTUC–RENGO expresses again its concern that the views and opinions expressed by workers’ and employers’ representatives were not taken into consideration when discussing the draft bill for supporting jobseekers within the Labour Policy Council. As a result, the discussion at the Labour Policy Council was restricted. JTUC–RENGO emphasizes that consultations with the social partners in decision-making regarding employment policies should be fully respected. The Government indicates that it takes this criticism seriously as the Labour Policy Council found it extremely regrettable. The Committee invites the Government to provide examples of how the views of workers’ and employers’ representatives expressed in the framework of the Labour Policy Council and other councils, have been used concretely in the formulation, review and implementation of employment policies. In this regard, the Committee asks the Government to focus on the consultative procedures that enable it to take the views and experiences of persons affected by employment policy measures fully into account in order to secure their full cooperation in formulating and enlisting support for these measures.

Articles 1 and 2. Implementation of an active employment policy. The Government indicates that the unemployment rates increased between 2007 and 2010 from 3.9 per cent to 5.4 per cent for men and from 3.7 per cent to 4.6 per cent for women. The rates slightly decreased to 5 per cent for men and to 4.2 per cent for women in April 2011 despite the March 2011 Great East Japan earthquake. The Government indicates that in the fiscal year (FY) 2010, the measures aimed at promoting employment launched in 2009, which include the Hometown Employment Reactivation Special Grant and the Emergency Employment Creation Project, continue to be implemented. Active labour market measures implemented focused on, inter alia, reducing the requirements for employment adjustment subsidies to support continued employment. Moreover, measures are being implemented to provide training opportunities to jobseekers who have limited opportunities to find employment. These measures include the review of the job card system in April 2011 and the implementation of a support system for jobseekers in October 2011 under the Jobseekers Support Act. This system aims at subsidizing vocational training of jobseekers. The Government indicates that in response to the earthquake, the project on job creation in priority areas is projected to be expanded for reconstruction of the affected region. The creation of approximately 20,000 jobs is planned, particularly through the abovementioned project. Moreover, the “Japan as One Work Project” has been developed. This entails the creation of employment through construction projects, the expansion of subsidies for enterprises that recruit disaster victims, employment support through on-site job counselling and the broadening of both employment adjustment subsidies and benefits of employment insurance to ensure continued employment and secure daily lives of disaster victims. The Committee notes that the GDP growth was expected to slow down to 0.7 per cent in 2011 before rising to 2.9 per cent in 2012. The recovery is expected to continue in 2012 as the resumption of exports increases domestic demand and reconstruction spending continues. The Committee invites the Government to provide information in its next report on the impact of the measures taken to promote full employment within a framework of a coordinated economic and social policy, including data on the employment levels of those who have been affected by the earthquake.

Workers affected by the postal privatization. In its remarks of October 2010, YUSANRO indicated that due to a cutback in personnel costs, the number of non-regular workers of the Japan Post Group had increased by 15,000, while regular workers were reduced by 6,000 over two years after the 2007 postal privatization. In its comments of June 2012, YUSANRO indicates that out of 208,604 fixed-term workers in the Post Group, approximately 121,000 have been employed for more than three years. It further indicates that in February 2010, the Government drafted a Postal Reform Plan, which envisaged improving the working conditions of the high number of non-regular workers in the postal services and recruiting 100,000 full-time employees. Subsequently, the Post Group companies announced a recruitment plan, according to which workers fulfilling requirements concerning the duration of service (at least three years), hours of work (more than 20 hours per week) and age (less than 60 years old) were eligible for taking a test for their promotion to regular workers. The Post Group determined that 65,000 non-regular workers were eligible for the test. However, only some 9,500 workers passed the test in 2010 and 2011. YUSANRO points out that fixed-term workers have performed their job for many years as full-time workers. Therefore, they are experienced and their capability has been tested, but they have not gained employment security. It also indicates that the Japan Post Service company did not implement the promotion of fixed-term workers to regular workers in FY 2011 and postponed it until June 2012. Moreover, in September 2011, the Japan Post Service company terminated the employment of 13,694 fixed-term workers. YUSANRO indicates that a review of the postal privatization should target the equal treatment of non-regular workers and their promotion to full-time regular employees. YUSANRO also indicates that no consultations were held with the social partners concerning employment policies in the postal sector. Therefore, it is necessary to hold consultations between the Government and the employers’ and workers’ representatives of the postal sector to develop policies for full employment. In its report received in October 2011, the Government indicates that generally speaking it recognizes that it is important that employers give consideration to the conditions of employment of their employees. However, it stresses that the employment of non-regular workers in the Post Group companies, which are private firms, should be determined by their business management. The Committee requests the Government to provide in its next report information on the impact that the privatization in the postal sector has had on the labour market. It would also appreciate receiving information on how the contracts used in the postal sector have contributed effectively to productive employment rather than to the redistribution, on less secure conditions, of existing jobs.

Non-regular workers. In its observations of September 2011, ZENROREN indicates that the Government failed to take appropriate measures for correcting the deteriorating situation which non-regular workers, comprising fixed-term workers, part-time workers, contract workers and workers employed by temporary employment agencies, are obliged to accept. Non-regular workers are the first to lose their jobs when the economy takes a downturn. Therefore, non-regular workers are more likely to fall into underemployment and long-term unemployment. A large number of non-regular workers lost their jobs following the March 2011 earthquake. Nevertheless, the situation in which replaceable workers are engaged in the same jobs has been a practice for companies in Japan. Not only wages and working conditions of non-regular workers are unequal to those of regular workers, but also these workers hardly obtain regular employment status and are excluded from social security coverage, especially unemployment benefits. The insufficient system of income support and vocational training in case of termination of employment causes non-regular workers to work in undesirable jobs, thereby restricting their freedom of choice of employment. ZENROREN further indicates that, following the reforms adopted since the late 1990s and the repeated revisions of labour laws, employers are encouraged to employ more non-regular workers. However, no regulations and monitoring system exist to correct adverse effects caused by those changes. In its remarks of June 2012, YUSANRO also expresses its concern that major corporations are replacing more of their full time employees with casual workers, such as temporary agency workers and independent contractors. Major corporations have cut jobs and limited wage increases allegedly in order to deal with the adverse impact of the earthquake. The Government indicates that equal and balanced treatment for part-time workers has been promoted under the revised Part-Time Workers Law. This legislation prohibits, in principle, business operators to discriminate against part-time workers in terms of wages and other treatments. Subsidies are provided to those businesses that promote an equal treatment for fixed-term and part-time workers. The Labour Policy Council has discussed rules for fixed-term employment contracts. The Committee observes that non-regular workers make up more than one third of total employment. In its General Survey of 2010 concerning employment instruments, the Committee also noted that in Japan there has been increasing labour market dualism arising from a decline in the prevalence of the lifelong employment system (paragraph 576). The Committee recalls its 2010 observation, in which it noted the rising unemployment among non-regular workers following the economic slowdown. The Committee requests the Government to provide in its next report detailed information on the measures implemented in consultation with the social partners to reduce labour market dualism and on how these measures have concretely translated into productive and lasting employment opportunities for non-regular workers.

Employment of women. In reply to the Committee’s previous comments, the Government indicates that the total number of women employed increased to 23.29 million in 2010 with women’s share in the total number of employed at 42.6 per cent. The revised Childcare and Family Care Leave Law, which obliges employers to establish a system providing for short working hours and overtime exemption and to expand the childcare leave system, came into force in June 2010. In FY 2010, the number of consultations regarding the Law doubled compared to the previous year to 143,000. Regarding the career-tracking system, the Government indicates that in order not to make the career-tracking system gender biased, a fixed number of enterprises introducing the career-tracking system are provided systematic guidance by prefectural labour offices pursuant to the Equal Employment Opportunity Law. The Committee invites the Government to provide information on the impact of policies and measures taken to promote women’s employment and equal employment opportunities for women and men. Please also provide information, including statistics, on the effect that the initiatives taken have had on dismantling the gender-based career-tracking system to ensure that there is freedom of choice of employment and that each worker shall have the fullest possible opportunity to qualify for and use his or her skills, in the conditions set out in Article 1(2)(c) of the Convention.

Youth employment. The Government indicates that it continued to implement measures to promote the employment of new graduates, such as doubling the number of employment service staff providing job support to new graduates, establishing the New Graduate Support Hello Work and providing for subsidies to enterprises hiring young persons within three years after their graduation. The Government further indicates that as a result of the freeters Regular Employment Promotion Plan, 304,000 freeters, i.e. young people in temporary or part-time jobs, were regularly employed. The Committee notes that the unemployment rate among young persons between 15–24 years increased from 7.7 per cent in January 2011 to 9.5 per cent in April 2011. The Committee requests the Government to provide information on the impact of the measures implemented in terms of generating productive and lasting employment opportunities for young workers.

Older workers. The Committee notes JTUC–RENGO’s observation that as of 1 June 2010, 3.4 per cent of enterprises with 31 or more workers have not yet implemented any employment security measures for the elderly. In JTUC–RENGO’s view, government guidance to companies that have not implemented measures for employment of the elderly is not strong enough to enforce the Elderly Employment Stabilization Law. The Government indicates that the entire system regarding elderly employment policies is to be reviewed within the Labour Policy Council in order to, inter alia, strengthen the enforcement of the Elderly Employment Stabilization Law. The Government also indicates that various subsidies are provided to businesses to encourage them to take employment security measures for older workers and provide them with employment opportunities. The Committee invites the Government to include in its next report data which will allow it to assess the effectiveness of the measures implemented to promote productive employment opportunities for older workers.

The Liaison Council of Labour Unions in Public Corporations (TOKUSHUHOJIN–ROREN) submitted observations to the Government on the application of the Convention, forwarded in August 2012. The Committee intends to examine these observations and the comments that the Government may wish to make on the matters raised therein at its next session in 2013.