Observation (CEACR) - adopted 2023, published 112nd ILC session (2024)

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

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The Committee notes the observations made by the Japanese Trade Union Confederation (JTUC–RENGO) and those made by the International Organisation of Employers (IOE), transmitted by the Government together with its 2023 report. The Committee also notes the observations made by the Rentai Union Suginami, the Apaken Kobe (Casual/Temporary/Part-time Non-regular Workers’ Union), the Rentai Workers’ Union (Itabashi-ku Section) and the Union Rakuda (Kyoto Municipality Related Workers’ Independent Union) received in September 2022 and the Government’s comments thereon from November 2022.

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee notes that in response to its previous observations, the Government provides an overview of various employment measures and initiatives undertaken across different sectors, including in the areas of skill development, work–life balance, support for specific groups such as women, youth, the elderly, and persons with disabilities, and the integration of foreign human resources. The Government emphasizes the need for collaboration between the public and private sectors to enhance labour productivity, upgrade workers’ skills, and promote social participation. More particularly, the report informs that the Japan Revitalization Strategy has been succeeded by the “Grand Design and Action Plan for a New Form of Capitalism”, approved by the Cabinet on June 7, 2022. The new plan emphasizes the strengthening of investment in human capital, recognizing the importance of people in the context of major changes like digital transformation and energy transformation. A 400 billion Japanese yen package of measures over three years will be implemented to support skill development, re-employment, and advancement for workers, including non-regular employees. Initiatives from the “Long-term Vision for Overcoming Population Decline and Vitalizing the Local Economy in Japan” are being implemented to encourage active participation in society for women, youth, the elderly, and people with disabilities. Efforts for women include mandatory action plans, disclosure of information, certification of excellency for employers, and support for work–life balance, with subsidies provided to SME employers. The Government further indicates that youth employment initiatives continue under the Act on the Promotion of Employment for Young People and that support for the elderly includes lifelong participation support counters, Silver Human Resource Centers, and the “Lifelong Participation Community Development Environmental Improvement Project.” Moreover, the “Basic Principle for Labour Policies” emphasizes the reform of work styles and outlines the significance of preparing an environment for accepting foreign human resources. In this respect, the “Guidelines for Employment Management of Foreign Nationals” guide the Labour Bureaus and Hello Work in conducting seminars for employers employing foreign nationals, aiming to improve employment management. The Government also mentions the existence of procedures for determining and reviewing employment measures, including amendments to labour laws, and involve inquiries and reporting by the Labour Policy Council, which has a tripartite composition and includes representatives of the public sector, labour, and management. Referring to the specific comments it is also formulating in respect of the specific occupational groups referred to above, the Committee takes due note of this information and requests the Government to provide detailed updated information on the impact of these measures on the employment situation in the country. It also requests the Government to continue to provide updated detailed information, including statistics on employment trends, disaggregated by age, sex and economic sector, as well as data on labour productivity and the share of disposable income held by the poorest sections of the population. The Committee also again reiterates its request to the Government to provide detailed updated information on the procedures for deciding on and reviewing employment measures implemented within the framework of an overall economic and social policy.

Employment of women. With reference to its previous comments in relation to women’s employment, the Committee notes the information provided by the Government in its report in respect of: (i) the revision of the Act on Promotion of Female Participation and Career Advancement in the Workplace to require employers with more than 100 regularly employed workers to assess the status of and analyse issues related to women’s active participation in their enterprises; and also require employers to develop an action plan including numerical targets to promote women’s participation; (ii) the revision of the Child Care and Family Care Leave Act to establish a flexible childcare leave framework for men and require employers to create a workplace environment that makes it easier for them to take childcare leave; (iii) raising awareness of labour laws by preparing comic-style learning materials on labour laws and distributing them to schools and universities; the Government also dispatches officials from the Labour Bureau to schools to give lectures on labour-related laws and regulations; (iv) the provision of guidance on career-tracking systems – the Government refers to the guidelines on important considerations for employers which provide examples of cases that immediately conflict with the Act on Securing, Etc. of Equal Opportunity and Treatment between Men and Women in Employment, as well as examples of matters that should be considered for more appropriate and smooth operation of the systems; and (v) the enforcement of the law – strict measures being taken against employers who use career-tracking systems for de facto gender-segregated employment management. Pursuant to the report, these steps have led to some progress in promoting gender equality in the workplace. For example, the employment rate of women in Japan has increased from 51.3 per cent in 2018 to 53.0 per cent in 2022. However, more work needs to be done, with the percentage of women in management positions still at a relatively low level. The Government indicates it is committed to continue taking steps to promote gender equality in the workplace.

The Committee notes that, pursuant to the observations made by JTUC-RENGO, while 53.4 per cent of employed women work in non-regular forms of work, this is the case for only 22.2 per cent of employed men – less than half of the rate of women for the same category. The assessment of women’s active engagement should not rely solely on increased employment numbers but also consider the quality of their employment. Japan’s low ranking of 125th out of 146 nations in the Gender Gap Index (GGI) is attributed to delayed gender equality efforts in politics and economics. The Government’s “Priority Policy for Women’s Active Engagement and Gender Equality 2023” targets a 30 per cent ratio of women in prime listed companies by 2030, but urgent issues persist, particularly for non-regular female workers. Deeply rooted gender roles contribute to many women working as non-regular employees, with men’s limited involvement in housework and childcare exacerbating the issue. Efforts to disclose information through the Act on Promotion of Women’s Engagement are deemed insufficient by JTUC-RENGO, emphasizing the need for comprehensive analysis and corrective measures. Despite the 2023 revision of the Childcare and Family Leave Act, men’s parental leave rates remain low, requiring the government to incentivize and foster a culture valuing work–life balance during childcare. While recognizing the Government’s steps against gender discrimination in career-tracking, JTUC-RENGO calls for more to ensure employer compliance and investigation into potential covert use of diverse regular employee systems to circumvent the Equal Employment Opportunity Act.

Taking into account the above information, the Committee considers that, in the context of a labour market impacted by a diminishing and ageing population, increasing the employment of women by reducing disincentives to work in the tax and social security system and by further expanding childcare and breaking down labour market dualism, would result in positive employment outcomes and would also help lower income inequality and boost productivity by potentially also encouraging firm-based training. The Committee therefore requests the Government to continue to provide detailed updated information, including statistical data disaggregated by sex, age and type of employment contract, on all measures taken or envisaged to promote women’s access to decent and lasting employment, including in managerial and decision-making positions, and prevent gender-based discrimination. Taking into account the observations formulated by the JTUC-RENGO, the Committee requests the Government to continue providing information on measures aimed at promoting equitable sharing of family responsibilities that enable both women and men to exercise their right to better reconcile their professional and family responsibilities and ensure equality of opportunity and treatment in workplaces on the basis of both sex and family responsibilities. It also requests the Government to continue providing information on the restrictions related to the gender-based career-tracking system to ensure that women and men enjoy freedom of choice in employment and occupation, as contemplated in Article 1(2)(c) of the Convention.

Older workers. In reply to the Committee’s previous requests, the Government outlines initiatives addressing the challenges and opportunities linked to increasing life expectancy, with the goal of establishing a lifelong active society allowing elderly individuals desiring to work to continue doing so regardless of age. Measures include actions to ensure stable employment, such as the Act on Stabilization of Employment of Elderly Persons, requiring enterprises to secure employment until age 65 and granting subsidies to those extending employment for workers aged 66 or older. Recognizing that needs are diverse, the Government encourages, on a non-binding basis, enterprises to adopt measures for work until age 70. As of June 2022, almost all enterprises with 21 or more employees have implemented such measures. The Government plans ongoing guidance for smaller enterprises. Support for Re-Employment includes increasing lifelong participation support counters, a career agency project for retirees, and subsidies for enterprises hiring middle-aged and elderly workers. Diversified local employment opportunities are promoted through the “Lifelong Participation Community Development Environmental Improvement Project” and Silver Human Resource Centers. The Committee takes due note of the above measures and wishes to stress that promoting the labour force participation of older workers is of utmost important and requires a multifaceted strategy that addresses demographic challenges, enhances economic productivity, ensures the sustainability of social security systems, and fosters the well-being of individuals and society as a whole. The Committee requests the Government to continue to provide detailed updated information on the impact of the measures taken to promote productive employment of older workers, indicating in particular: (i) assessments of how older workers’ workforce participation can contribute to sustained economic growth and of what is the impact of continued employment of older workers on the entry in the labour market of women and young persons; (ii) how measures taken to promote labour force participation of older workers have contributed to addressing the demographic challenges and imbalances and mitigate the economic impact of a shrinking labour force; (iii) the expected effects of the continued participation of older workers to the labour force on overall economic productivity and social security sustainability, taking into account that Japan assumes obligations under Part V of the Social Security (Minimum Standards) Convention, 1952 (No. 102); (iv) whether encouraging continued employment is accompanied in any way by a reduction in retirement options or incentives for older workers; and (v) whether and how older workers’ workforce participation has helped address skilled labour shortages and maintain the competitiveness of certain industries but also contributed to knowledge transfer to younger generations and active ageing fostering a sense of purpose and social connection, reducing the risk of social isolation.

Article 3. Consultations. In reply to the Committee’s previous comments, the Government reiterates that important matters relating to the enactment, revision and enforcement of laws and regulations on employment policies are deliberated at the Labour Policy Council. This council, operating under the tripartite principle with representatives from the public interest, workers, and employers, serves as a platform for deliberations. Meanwhile, the Government has had consultations with the representatives of employers and employees affected by employment policies. Discussions held and opinions submitted at related councils are reflected in the designing and planning of employment policies. Since June 2016, the Labour Policy Council has held approximately 850 sessions (including Subcommittees and Working Groups) to discuss reviews of the Employment Security Act and the Vocational Abilities Development Promotion Act. As to the manner in which representatives of those affected by the measures concerned are consulted, the Government refers to the example of how employment policies taking into account the needs of persons with disabilities are developed, stating that tripartite participants, together with representatives of persons with disabilities broadly express their opinions at the Subcommittee for the Employment of Persons with Disabilities under the jurisdiction of the Labour Policy Council. In its observations received with the 2023 Government report, the JTUC-RENGO, referring to the “Grand Design and Action Plan for a New Form of Capitalism”, considers that it is important that matters pertaining to employment and labour, which are of significant importance, undergo thorough discussions within the Labour Policy Council which operates under the tripartite principle involving the government, workers, and employers, and the outcomes of these discussions should be incorporated into government policies. The translation of these discussions into concrete policies and measures is forthcoming, and it is therefore imperative that these decisions are made through careful deliberations. In this respect, it is essential to consider the perspectives of workers and employers, who possess a deep understanding of workplace dynamics, in the Labour Policy Council. The Committee requests the Government to continue to provide information on the activities of the tripartite Labour Policy Council with respect to the development, implementation and review of employment policy measures and programmes, and the manner in which they are coordinated with other economic and social policies.

Moreover, the Committee also notes that in their observations from September 2022, the Rentai Union Suginami, the Apaken Kobe (Casual/Temporary/Part-time Non-regular Workers’ Union), the Rentai Workers’ Union (Itabashi-ku Section) and the Union Rakuda (Kyoto Municipality Related Workers’ Independent Union) refer to serious issues arising from the 2017 revision of the Local Public Service Act. The trade unions assert that the principle of tripartite consultation in the revision of labour laws, specifically for the Public Service Act, has been neglected. This lack of consultation contradicts the process observed for the revision of general labour laws. The unions assert that this situation goes against the purpose of Article 3 of the Convention. This revision has not only impacted basic labour rights but has also impacted employment policy in the public sector by creating a new category of public employees with renewable contracts of up to one year. This category now constitutes 30 per cent of the local government workforce, 76.6 per cent of which are women. According to the unions-, a main concern relates to the annual renewal of these contracts, leading to arbitrary personnel evaluations and terminations for reasons such as maternity, childcare, sickness, union activities, or expressing concerns to the administration. In its response to these observations, the Government considers them to be factually incorrect and indicates that the Local Public Service Act does not establish the principle of life term employment and that the establishment of the non-permanent employee’s system is intended to optimize the appointment and treatment of temporary and part-time staff. Non-permanent staff appointed for a fiscal year can be reappointed to a position with the same job duty after their term ends, indicating a new appointment to a different position without extending the term or guaranteeing reappointment to the same position. Finally, the Government stresses that the introduction of the non-permanent staff system was intended to encourage the appointment and treatment of temporary and part-time staff. In addition, before adopting this reform, the Government organized a study group which included experts, as well as the Japanese Trade Union Confederation (RENGO), the Japan Business Federation (Keidanren), and local governments. The study group held hearings, both with representatives of workers and of employers, to discuss the best way to appoint non-permanent staff. The Committee notes this information and requests the Government to indicate whether, after 5 years of implementing this new system, it is intended to carry out an assessment with a view to identifying potential insufficiencies and improving employment policy in the public sector, in consultation with the social partners, and all other interested parties, in line with Articles 2 and 3 of the Convention which require that measures taken to achieve the objectives of the Convention be kept under review and that representatives of the persons affected be consulted with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies.

The Committee is raising other matters in a request addressed directly to the Government.