Prepared and Released by
U.S. Department of Labor
Bureau of International Labor Affairs

2002
FLT 02-02
Frequency: Annual
Supercedes: 95-33

KEY LABOR INDICATORS
DESCRIPTION OF LABOR SCENE

ECONOMIC GROWTH AND EMPLOYMENT
INVESTMENT
DEMOGRAPHY AND THE LABOR FORCE
POLITICAL DYNAMICS
HUMAN RESOURCES MANAGEMENT
SOCIAL SAFETY NET

WORKER RIGHTS

DIRECTORY OF LABOR ORGANIZATIONS
KEY SOURCES

__________________

n/a = not available

Exchange rate: US$ 1= 113.7 Japanese yen (¥) (1999); 107.8 (2000).

¹ World Development Indicators 2001 (Washington, DC: World Bank Group, 2001) (http://www.worldbank.org).

² By mid-2001, Japan's population rose to 127.1 million, making it the 9th most populous nation in the world.

³ "United Nations Urban and Rural Areas, 1996" (New York: United Nations, Department of Economic & Social Affairs, Population Division) (http://www.un.org/esa/population/pubsarchive/ura/huraras.htm).

⁴ The World Factbook 1999 and 2000 (Washington, DC: Central Intelligence Agency).

⁵ Low domestic demand and structural impediments, leading to layoffs in the manufacturing, construction, and retail sectors, resulted in record high unemployment of 5.5 percent in November 2001.

⁶ International Comparisons of Manufacturing Productivity and Unit Labor Cost Trends, 2000 (Washington, DC: U.S. Department of Labor, Bureau of Labor Statistics, August 2001).

⁷ For real estate, the actual percent change is -0.045.

⁸ International Comparisons of Hourly Compensation Costs for Production Workers in Manufacturing 1975-2000 (Washington, DC: U.S. Department of Labor, Bureau of Labor Statistics, September 2001).

⁹ The nominal workweek is 40 hours.

DESCRIPTION OF LABOR SCENE

On January 6, 2001, the Ministry of Health, Labor and Welfare (MHLW) was established after a merger between the Ministry of Labor (MOL) and the Ministry of Health and Welfare (MHW). Mr. Chikara Sakaguchi, a member of the Lower House, was appointed to head the MHLW. The new Ministry has approximately 100,500 staff members, of whom 24,800 work on labor issues.

In merging the two Ministries, the Labor Relations Bureau of the MOL was abolished. A newly created Director-General for Policy Planning and Evaluation is responsible for issues involved in labor management relations. The Women's Bureau of the MOL and the Children and Families Bureau of the MHW were reshuffled into the Equal Employment, Children and Families Bureau, and a Worker's Life Department was added to the Labor Standards Bureau, which also houses the Industrial Safety and Health Department and the Worker's Compensation Department. The Employment Security Bureau, the Human Resources Development Bureau, and the Pensions Bureau also fall under the purview of the new Ministry. The Labor Relations Commissions, tribunals charged with adjudicating labor disputes, are considered to be external organs of the MHLW.

The International Affairs Division of the Minister's Secretariat handles the responsibilities associated with Japan's participation in the ILO, the OECD, and the Asia Pacific Economic Cooperation (APEC) forum. To facilitate its international work, the Ministry is aided by Labor Attaches assigned to Japanese Embassies around the world.

The MHLW also supervises the activities of government-affiliated corporations, including the Labor Welfare Projects Corporation, which implements welfare projects related to worker's compensation; the Foundation for Employment and Human Resources Development, which provides vocational training; and the Japan Institute of Labor, which promotes labor education and research.

The most representative organization of employers is the Japan Federation of Employers Association (Nikkeiren). This association was founded in 1948 to promote harmonious labor management relations and currently has a membership of 47 prefectural employers' associations and 60 industrial organizations. Nikkeiren liaisons with the Government and the trade unions, engages in policy study and research, and conducts training programs. Nikkeiren also takes part in international activities, including participation in the International Organization of Employers (IOE), the International Labor Organization (ILO), and the Organization for Economic Cooperation and Development (OECD).

Japanese labor unions are organized into three tiers: enterprise-based unions, industry-level unions, and national federations. Over 90 percent of the unions in Japan are enterprise-based unions. These unions engage in collective bargaining and consultation with company management, while the industry-level unions consolidate the demands of the unions within the industry and coordinate their negotiating tactics. The national federations serve as the voice of labor by their participation in national politics. There are three national federations in Japan: the Japanese Trade Union Confederation (Rengo), the National Confederation of Trade Unions (Zenroren), and the National Trade Union Council (Zenrokyo).

The Japanese Trade Union Confederation (Rengo) was formed in 1989 with the merger of public and private sector unions from the General Council of Trade Unions of Japan (Sohyo), the Japanese Confederation of Labor (Domei), the Federation of Independent Unions of Japan (Churitsuroren), and the National Federation of Industrial Organizations (Shinsanbetsu). With 7.31 million members, Rengo is the largest national trade union organization in Japan, representing almost two-thirds of Japanese organized labor. Approximately 70 industry-level unions are members of Rengo, including the Confederation of Japan Automobile Workers' Union (JAW); the Japanese Electrical Electronic & Information Union (JEIU); the Japanese Federation on Textile, Garment, Chemical, Commercial Food and Allied Industries Workers' Unions (Zensen); and the Japanese Association of Metal, Machinery, and Manufacturing Workers (JAM). Rengo is affiliated with the International Confederation of Free Trade Unions (ICFTU), and individual Rengo members are involved actively in the International Metalworkers Federation (IMF); the International Federation of Chemical, Energy and General Workers Unions (ICEF); the International Textile, Garment, and Leatherworkers Federation (ITGLWU); the International Federation of Building and Woodworkers (IFBWW); the International Federation of Commercial, Clerical and Technical Employees (FIET); and Public Services International (PSI).

The National Confederation of Trade Unions (Zenroren) was established in 1989 to represent unions associated with the Japan Communist Party. Zenroren has 1.04 million members, which is 9 percent of the total union membership in Japan. Zenroren unions include the Japan Federation of Public Service Employees Unions (Kokko-Roren), the Japan Federation of Prefectural and Municipal Workers' Unions (Jichiroren), the All Japan Teachers' and Staffs' Union (Zenkyo), and the Japan Federation of Medical Workers' Unions (Nihon Iroren).

The National Trade Union Council (Zenrokyo) also was created in 1989. Zenrokyo has 260,000 members and represents unions associated with the Japan Socialist Party. Zenrokyo members include the National Railway Workers' Union (Kokuro) and the Federation of Tokyo Metropolitan Government Workers' Unions (Tororen).

The 1990s have been dubbed Japan's "Lost Decade," during which the country's growth in gross domestic product (GDP) averaged a mere 1.6 percent, or less than half the 3.8 percent average of the preceding decade. Japan's growth has been impeded by its inability to recover from massive asset deflation in the wake of the burst economic "bubble" of the early nineties (manifested in numerous non-performing loans) and its failure to reform political, economic and social systems in order to adapt to the changing international economic environment. As is typical of highly regulated economies, the Japanese economy is now suffering from a serious misallocation of resources, a lack of investment, and a dearth of entrepreneurial innovation.

In 2001, Japan entered its third recession in a decade, after a short-lived recovery attempt failed to take hold. Japan's real GDP dropped 1.2 percent during the second quarter of 2001 and fell by another 0.5 percent in the third quarter. In November 2001, the Government of Japan reversed its economic projection for Fiscal Year (FY) 2001 (March 2001-March 2002) from 1.7 percent growth to a contraction of 0.9 percent in terms of real GDP.

The combination of low domestic demand and structural impediments has resulted in record-high unemployment of 5.5 percent in November 2001, with increasing unemployment predicted over the short-to-medium-term. The number of unemployed persons during the month totaled 3.5 million, an increase of 13.3 percent from November 2000. The rise in the jobless rate was primarily due to layoffs in manufacturing, construction, and retail.

In September 2001, Japanese industrial output fell by 2.9 percent and dropped another 0.3 percent in October. By November 2001, the country's industrial output plummeted another 1.8 percent to its lowest level in 14 years.

Over the last several years, foreign direct investment (FDI) in Japan has shown significant increases, while Japan's direct investment abroad has been leveling off. The ratio between inward and outward FDI, which was 1-to-13.4 in FY 1995, has changed dramatically to 1-to-1.7 in FY 2000. Many economists believe that surging FDI in Japan primarily is attributable to the economic conditions of the country, particularly declining land and stock prices. Foreign investors have been acquiring bankrupt or near-bankrupt Japanese financial institutions and retail companies. The Government of Japan's deregulation policies also may have contributed to the rise in FDI in Japan.

In the first half of FY 2001 (April to September 2001), FDI in Japan remained relatively strong with a total investment of US$12.6 billion. Although U.S. investment levels in Japan sustained the momentum established in FY 2000, in which U.S. FDI in Japan mushroomed, it shrank somewhat in the period to a total of US$3.6 billion. In recent years, FDI in Japan's banking/insurance, commerce/trading, and services sectors has accounted for large portions of overall FDI in Japan: 70.9 percent in FY 1998, 44.4 percent in FY 1999, and 49.3 percent in FY 2000. Another salient development is soaring foreign investment in the Japanese telecommunications business, with annual flows of US$7.6 billion in FY 2000 and US$4.6 billion in FY1999, compared with only US$129 million in FY 1998. This may be attributed in part to progress in structural reform, as the telecommunications industry is one of the sectors where liberalization has been progressing relatively vigorously.

Japan's direct investment overseas, by contrast, showed a significant decline in the first half of FY 2001, to a level of US$13.7 billion. This was down by 37.6 percent from the previous year's levels (on a yen basis at an annual rate). In the same period, Japan's FDI both in the U.S. and in Europe plunged by 42.7 percent and by 55 percent respectively. Despite the significant reduction in Japan's overall FDI, investment in China continued to be robust, with an increase of 67.2 percent from the previous fiscal year.

In mid-2001, the population of Japan numbered 127.1 million, making it the ninth most populous nation in the world. However, it is projected that the population will peak at 127.78 million in 2007 and then begin to decline. By 2025, Japan is expected to have a population of only 121 million, dropping from ninth to eleventh in the ranking of the world's largest countries.

A major long-term problem facing Japan is the aging of its population. The Japanese have the longest life expectancy in the world: 77 years for men and 84 years for women. In 2001, 17 percent of the Japanese were over 65 years of age, and the number is projected to increase to 25 percent by 2020. By contrast, Japan’s child population has been shrinking since 1975. In 2001, children aged 0 to 14 constituted only 14.4 percent of the total population. The country's fertility rate equals roughly 1.4 children per woman.

Following a steady rate of growth during most of the 1990s, the labor force decreased slightly from 67.93 million in 1998 to 67.79 million in 1999. In 2000, the Japanese labor force numbered 67.66 million, with a participation rate of 62.4 percent. By November 2001, the labor force increased to 67.80 million, but the participation rate dropped to 62.1 percent.

Although the number of foreign residents has increased during the last decade, they accounted for only 1.3 percent of the total population in 2000. Over 73 percent of the foreign nationals are from Asia, coming primarily from South Korea, China, and the Philippines. There also has been an influx of Central and South Americans of Japanese descent, mainly from Brazil and Peru. Approximately 2.7 percent of Japan's foreign residents are from the United States.

The Immigration Bureau of the Ministry of Justice reported that approximately 252,000 foreign nationals resided illegally in Japan during 1999. These immigrants came primarily from South Korea, the Philippines, China, Thailand, and Malaysia. In February 2000, the revised Immigration Control and Refugee Recognition Act went into force, making illegal entry into Japan a crime and barring former illegal entrants from returning to Japan for five years. The Act also established penalties against employers of undocumented foreign workers.

The most important role of the national trade unions is their participation in politics. Rengo represents the labor sector on various government advisory bodies and actively takes part in decision-making processes concerning labor policy. In November 2001, Rengo participated in the Tripartite Council on Employment Measures, along with Nikkeiren, the MHLW, and the Ministry of Economy, Trade and Industry (METI). The deteriorating employment situation and the structural reforms being carried out by the Government were discussed at the meeting. Government, labor, and business agreed to cooperate in stabilizing and creating employment. Rengo and Nikkeiren announced the adoption of a joint declaration calling for social consensus on employment, and Minister Chikara Sakaguchi expressed the Government's willingness to promote efforts to form such a consensus.

Rengo also plays an active role in the political election process. During the September 2001 election in the Upper House of the Japanese Parliament, Rengo endorsed 57 candidates, of whom 26 won seats. Twelve of those voted into office were union members. However, Rengo failed to realize its goal of establishing a government led by the Democratic Party of Japan. The coalition of the Liberal Democratic Party (LDP), the New Komeito Party, and the New Conservative Party remained in power.

The Japanese employment system has often been referred to as a "lifetime employment" system. Firms compete with each other every spring to recruit the best of the new university and high school graduates as regular employees. The desirability of each graduate is normally determined as much by the prestige attached to his/her university or school as by academic record. Regular employees enter the firm with the expectation that they will be kept on until they reach the mandatory retirement age of 60. However, there is no legal guarantee of lifetime employment, only an understanding that the employer will exhaust all other measures before pursuing staff retrenchment. In the current economic climate, there are few advocates of lifetime employment guarantees, but tradition and inflexible labor laws governing dismissal still cause employers to exercise extreme caution in dismissing workers.

The traditional Japanese wage system is based on seniority. New employees are given a monthly salary based on the individual's level of educational attainment but not job assignment. This sum automatically rises at least annually in accordance with a published table on the basis of length of service. However, in recent years, Japanese companies increasingly have shifted towards a wage system that is linked to performance. The reason given for the shift is that Japanese businesses now face increasing global competition and need to further motivate their workers.

Japan also has a distinctive bonus system, under which workers are given bonuses twice yearly (June and December). These bonuses are described as a deferred salary payment and constitute a significant portion of the workers' annual income. The amount of the bonus is either negotiated with a union or based on custom and traditionally is not tied to profits. Notwithstanding, some Japanese firms, such as Fujitsu and Toshiba, recently have instituted a policy linking bonuses to overall corporate performance.

Established in 1947, the employment insurance system is overseen by the MHLW but is administered by the local authorities. The system covers all employees, with the exception of seasonal workers, seamen, and government employees. Coverage is voluntary for employees in firms with fewer than five workers. In 2000, 2.02 million workplaces participated in the program, covering 33.7 million workers. There were 1.03 million beneficiaries.

Employees are required to contribute 0.6 percent of their salary to the employment insurance system. Employers must pay insurance premiums totaling 0.95 percent of their payroll, of which 0.6 percent is applied directly to employment insurance. The remaining 0.35 percent goes toward services for employment stabilization, services for developing human resources, and services for the welfare of employees.

To be eligible for benefits, an individual must have been insured and working for at least six months prior to becoming unemployed. Unemployed workers receive 60 percent to 80 percent of their previous daily wage. The duration of benefits is between 90 to 300 days; depending upon the number of years they have been insured and their age.

Participation in the Worker's Compensation Insurance System is mandatory for all firms in industry and commerce, with the exception of the Government and seamen. It is voluntary for agriculture, forestry, and fishery establishments with less than five workers. Coverage also is open to the self-employed and to workers sent overseas by their employers. Employers are required to pay insurance premiums between 0.6 percent and 13.4 percent of payroll, depending on the industry's three-year accident rate.

All medical expenses are paid for injured workers. After a three-day waiting period, workers receive 60 percent of their daily wage per each missed workday for up to 18 months. In addition, disabled workers are given a temporary disability supplement equal to 20 percent of their daily wage. Commencing in the 19th month, the severely disabled receive the Injury and Disease Compensation Pension, which is equal to 100 percent of the daily wage multiplied by 245 to 313 days per annum until recovery, and a special supplement based on the worker's annual bonus. All other injured workers maintain their previous level of compensation while undergoing the necessary treatment.

Permanently disabled individuals are entitled to receive a pension equal to 100 percent of their daily wage multiplied by 131 to 313 days annually, or they can obtain lump-sum compensation equal to 56 to 503 days of their daily wage if they are less seriously disabled. The permanently disabled also qualify for ¥108,300 (US$884.73) for constant care or ¥54,150 (US$442.37) for part-time care.

Survivor benefits include a pension equal to the worker's daily wage multiplied by 153 to 245 days per annum, depending upon the number of survivors. If no survivors meet the specified age and disability requirements, compensation is given in a lump-sum payment equal to 1,000 days of the worker's daily wage. Survivors also receive a funeral grant of ¥315,000 (US$2,573.32) plus 30 days' wages, or 60 days' wages, whichever is greater.

In 1999, 2.7 million workplaces participated in the worker's compensation program, covering 48.5 million workers. There were 217,386 pension recipients and 602,853 new beneficiaries.

Japan has a universal health insurance system, under which all citizens can receive medical attention if they become ill or injured. Businesses with at least five workers must provide their employees and their families with government-managed health insurance or comprehensive insurance obtained from a health insurance association. As of March 1999, 37.6 million workers participated in government-managed plans, while 32.6 million had comprehensive insurance. The National Health Insurance programs covers the self-employed, farmers, employees of small businesses, and the unemployed. Foreign residents of Japan may receive national health insurance if permitted by the local government. Approximately 45.5 million people participated in the National Health Insurance Program in 1999. Government workers, instructors at private schools, and senior citizens are all covered by insurance from mutual aid associations. As of March 1999, roughly 24.1 million Japanese received mutual aid insurance, of whom 13.9 million were senior citizens.

The Japanese pension system consists of a public pension plan and corporate pension funds. Japanese citizens between the ages of 20 and 59 must be enrolled in the public pension plan, which comprises national pensions, employee pensions, and mutual aid pensions. Farmers and the self-employed contribute a fixed premium of ¥13,300 (US$108.65) per month to the national pension plan and may also subscribe to a supplemental national pension fund. In March 2000, students were given a 10-year grace period from participating in the national pension plan. The Government and government workers equally contribute 8.675 percent of the worker's monthly salary into the mutual aid pension plan. Employers and employees in the private sector also pay 8.675 percent of the monthly salary to the Employees' Pension Insurance (EPI), as well as 1 percent on bonuses.

The three pension plans begin paying basic benefits between the ages of 60 and 65. Beginning at age 65, retirees under the national pension plan receive a monthly allotment of ¥134,000 (US$1,094.68) per couple. Both the mutual aid pension plan and the EPI pay proportional benefits in addition to the national pension benefits; the age at which payments begin is being gradually increased over time from age 60 to age 65 in accordance with the 2000 Public Pension Reform legislation. For a typical couple, employee pension programs grant monthly benefits totaling ¥238,000 (US$1,944.29), which includes the above-mentioned national pension benefits. However, as of April 2000, new beneficiaries receive 5 percent less benefits under the EPI than those persons in the system before that date. The national pension plan and the EPI also provide basic pensions to the disabled, as well as pensions to the families of deceased beneficiaries.

As of March 31, 1999, there were 70.5 million subscribers to the public pension plan, including 20.4 million self-employed and 5.3 million government workers. Approximately 33 million private sector employees also were covered, as were their 11.8 million dependent spouses. Roughly 0.73 million participated in the supplemental national pension fund.

The public pension system is supplemented by corporate pensions, although many Japanese continue to prefer the traditional lump-sum settlement upon retirement to monthly pension payments. Employee Pension Funds (EPFs) comprise the largest segment of corporate pension plans. Businesses with more than 500 employees may set up an employee pension fund, with both employers and employees contributing between 1.6 percent and 1.9 percent of the employee's salary to the fund. In addition, EPFs manage a portion of the EPI on behalf of the Government and are required to pay out the benefits. However, with the passage of the Corporate Defined Benefits Pension Plan Bill on June 8, 2001, firms will be able to relinquish responsibility for the EPI beginning in April 2002.

Another popular corporate pension scheme is the Tax-Qualified Pension Plan (TQPP). In 1999, approximately 10 million Japanese participated in TQPPs. Under this scheme, employers are allowed to exempt their contributions from corporate tax. TQPPs also are less regulated by the Government, providing flexibility for small- and medium-size companies. However, TQPPs offer no protection in case of bankruptcy. Thus, the Corporate Defined Benefits Pension Plan Bill mandated that no new TQPPs are to be set up. The TQPPs are to be phased out by 2012 in favor of a scheme that will better protect beneficiaries.

On June 22, 2001, the Japanese Parliament passed the Defined Contribution Pension Plan Bill, which subsequently went into effect on October 1. The new defined contribution pension system is divided into company plans and individual plans. Contributions to a company plan can be made only by the employer. If the employer has an EPF or TQPP, then contributions to the company plan are limited to ¥216,000 (US$1,764.56) per year. If no other plan exists, the contribution limit doubles to ¥432,000 (US$3,529.12) per year. The self-employed may give up to ¥816,000 (US$6,666.12) per year to individual plans, and workers not covered by pension plans at their employment are allowed to contribute up to ¥180,000 (US$1,470.47) per year to an individual plan. All who have participated in either company plans or individual plans for more than 10 years are eligible for distribution payments at age 60. Distribution payments can be in the form of an annuity or a lump-sum payment.

Articles 21 and 28 of the Constitution of Japan provide for freedom of association, the right to organize, and the right to act collectively. The courts have interpreted the right to act collectively as extending to the right to strike. The Trade Union Law protects Japanese workers in exercising autonomous self-organization for the purpose of collective action. The Trade Union Law defines collective action as the right to engage in union activities and the right to strike. Mechanisms exist for resolving cases of anti-union discrimination, including the reinstatement with back wages of any workers fired for union activities. Unions are required to register with the local Labor Commission to be entitled to the protections afforded under the Trade Union Law.

Public employees are free to join unions, with the exception of the police, fire fighters, the Self-Defense Forces, and the Coast Guard. However, public employees are prohibited from striking. The Supreme Court of Japan has held that the limitations on the right to strike are constitutional because the law provides alternate means of protecting workers' interests.

The denial of the right to organize for Japanese firefighters has been a matter of long-standing concern in the International Labor Organization because it contravenes ILO Convention No. 87, ratified by Japan in 1965, which allows exclusions only for police and the military. In 1995, to offset these restrictions, the Japanese Government amended the Fire Defense Organization Law to provide for the establishment of "fire defense personnel committees" in all fire defense headquarters. The purpose of the committees is to discuss opinions proposed by fire defense personnel with regard to such matters as remuneration, working hours and other working conditions. These efforts were welcomed in the ILO as an important step towards the application of Convention 87. However, the Japan Federation of Prefectural and Municipal Workers' Unions (JICHOREN) and the National Network of Fire Fighters (FFN) have reported to the ILO that the committees do not represent an adequate alternative to the right to organize. The ILO continues to monitor developments in this regard.

As of June 30, 2000, there were 67,737 labor unions in Japan. Approximately 21.5 percent of workers were unionized, with 11.4 million out of an eligible 53.8 million workers having joined a union. The government had the highest level of unionization at 61.7 percent, followed by the electricity, gas, heating, and water works industries at 56.1 percent. Unionization rates were lowest in agriculture, forestry, and fisheries at 5.1 percent.

In 1999, the number of labor disputes totaled 1,102. Roughly 87,609 working days were lost to strikes, involving 25,673 employees. The majority of disputes concerned salaries and working hours.

Under Article 28 of the Constitution, workers are granted the right to bargain and act collectively. Article 6 of the Trade Union Law allows unions and employers to negotiate with each other and to conclude collective bargaining agreements. The Trade Union Law proscribes an employer's refusal to bargain collectively as an unfair labor practice. The Labor Relations Commissions have the authority to adjudicate complaints of unfair labor practices.

Collective bargaining is practiced widely in Japan. In the private sector, most aspects of labor management relations are determined through collective bargaining. However, issues affecting management and production, such as new plant and equipment and subcontracting, usually are resolved through regular consultations between the unions and management. In addition, collective bargaining agreements normally do not cover wages, which are negotiated separately during the Spring Wage Offensive (shunto).

The Spring Wage Offensive has occurred annually since 1955. During shunto, enterprise-based unions in each industry conduct negotiations simultaneously with their companies. The objectives of shunto are to provide each individual union with a greater bargaining power and to distribute wage increases proportionally across the industry. During the 2001 shunto, the wage increases averaged ¥6,328 (US$51.70), an increase of 2.01 percent. However, shunto negotiations increasingly are shifting away from wages to job security due to the current economic situation.

Government workers have limited collective bargaining rights. The Government determines the pay of public sector employees based on a recommendation by the independent National Personnel Authority (NPA). The NPA recommendation is based on wage surveys.

Article 18 of the Constitution provides that no person shall be held in bondage of any kind and prohibits involuntary servitude, except as punishment for crime. The settlement of some disputes related to forced labor during World War II is still ongoing.

Article 27 of the Constitution bans the exploitation of children. Under the Labor Standards Law, children under the age of 15 are prohibited from working, and those under age 18 may not be employed in dangerous or harmful jobs. The Labor Inspection Division of the MHLW vigorously enforces the laws on child labor and, in 2000, reported only 16 violations.

Gender discrimination is prohibited by Article 14 of the Constitution, and the Equal Employment Opportunity (EEO) Law affords male and female workers equal treatment at the workplace. In April 1999, a revision to the EEO law came into force, nullifying regulations that prevent female employees from working overtime, on holidays and at night. The new EEO law includes regulations to prevent sexual harassment in the workplace and prohibits discrimination against women in such areas as recruitment, employment, job assignment, promotion, vocational training, retirement, and dismissal. The law also provides measures to settle gender-related disputes: corporate voluntary settlement; disputes settlement assistance by the Director General of the Prefectural Labor Bureau, and arbitration by the Equal Employment Mediation Committee. The revised EEO law allows the names of companies that practice sexual discrimination to be publicized but does not include any punitive measures to enforce compliance.

The Equal Employment, Children and Families Bureau of the MHLW indicated that approximately 8,600 sexual harassment cases were reported in FY 2000. Since the 1999 revision, there has been a 35 percent jump in consultations regarding sexual harassment. In FY 2000, 98 cases regarding gender discrimination were under disputes settlement assistance. Sixty-nine cases concerned forced retirement and/or dismissals. The remaining 29 cases dealt with pregnancy discrimination. In addition, two cases concerning discrimination against women with regard to promotions went to arbitration.

In practice, the Japanese employment structure is gender-segmented, with women lacking parity with their male colleagues. Many Japanese firms do not view their young female recruits as long-term employees, believing that most will leave their positions for marriage and child rearing during their 20s to early 30s. Due to this "male breadwinner" premise, female recruits, including college graduates, generally are denied placement in the company's managerial track and instead are given a general track position to perform office work, including clerical duties. In 1998, only 9.2 percent of women held managerial track positions, primarily in lower management, and over half of Japanese companies reported that they did not even consider women for such positions. The dual track system has led to a wage disparity between male and female workers in Japan. In 2000, females earned only 65.5 percent of the remunerations given to male workers. Thus, most Japanese women have little incentive to stay in low wage and low skill jobs, which offer no real opportunity for advancement.

For female workers who choose to remain employed during pregnancy, the Labor Standards Law provides that female employees are entitled to 14 weeks of maternity leave: 6 weeks of prenatal leave and 8 weeks of postnatal leave. For multiple births, women are granted 10 weeks of prenatal leave. Women workers are guaranteed pay for all prenatal leave and 6 weeks of postnatal leave and can receive a maternity allowance under the National Health Insurance plan equaling 60 percent of their daily salary for any unpaid period between 42 days before childbirth to 56 days after. An additional maternity allowance equivalent to 25 percent of the employee's daily salary also is available. Moreover, National Health Insurance gives a lump sum grant of ¥300,000 (US$2,351.28) for each delivery, as well as an additional childbirth/childcare allowance worth ¥66,000 (US$517.28).

Under the Child Care and Family Care Leave Law, employers are required to implement shorter working days and to limit late-night work for employees who must care for children and the elderly. In addition, a worker who has worked for the company at least 1 year may take leave to care for a child until the child's first birthday and is entitled to 3 months leave for the constant care of a family member. While on childcare/family care leave, the employee receives 40 percent of his/her salary. In 1999, 56.4 percent of working women took child care leave after giving birth, and 0.15 percent participated in the family care leave program. Only 0.42 percent of male workers took child care leave, while 0.01 percent took part in family care leave.

When Japanese women try to rejoin the labor market, they find it difficult to get positions as regular employees. For most re-entrants, only temporary and part-time work is available. As of February 2000, 8.34 million women held part-time positions, representing 41.8 percent of the female workforce. Only 2.29 million men were part-timers, constituting 8.0 percent of the male labor force.

Older workers also are at a disadvantage in the labor market, as Japan has no anti-age discrimination law. More than 90 percent of job offers have an age limit attached, and the country has a mandatory retirement age of 60. Yet, few workers actually can afford to retire at this age, and many are denied regular employment. Instead, they are forced to seek part-time and temporary work to make ends meet.

Pursuant to the Minimum Wages Law, minimum wages are determined either on a prefectural basis, with a recommendation from the Prefectural Minimum Wages Council, or on an industry basis, with input from a tripartite advisory council. The prefectures have been divided into four ranks, each of which has its own standards for setting minimum wages. To ensure the coherent administration of the law by the 47 prefectures, a Central Minimum Wages Council reviews their activities and provides guidance. The amount of the minimum wage is revised annually, and the general prefectural minimum wage is normally lower than the industrial one. Compliance with the Minimum Wages Law is considered widespread.

In 2000, the prefectural minimum wage rates ranged from a daily rate of ¥5,560 (US$48.90) in Tokyo and Osaka to ¥4,795 (US$42.17) in Miyazaki, Aomori, Iwate, and Akita. The highest industrial minimum wage rate was ¥6,099 (US$53.64) per day in publishing and printing, followed by ¥6,004 (US$52.80) in the automobile and retail trade. The lowest industrial minimum wage was found in the lumber, wood products, and furniture industries at ¥5,341 (US$46.97). These wages are considered sufficient to provide a worker and his/her family with a decent standard of living.

The Labor Standards Law states that working hours are to be no more than 8 hours per day or 40 hours per week. However, the law permits enterprises to increase working hours during busy periods and to decrease them during slack periods. In 1999, 95.8 percent of Japanese workers were on the 5-day workweek, although only 58.7 percent of all employers had adopted it on a regular basis.

During 2000, employees in businesses with at least 5 employees worked 154.4 hours per month, for a yearly total of 1,853 hours. Overtime accounted for 9.8 working hours per month. In addition, Japanese workers utilized roughly half of the paid holidays and vacation days to which they were entitled. The Government of Japan has set a goal to shorten the number of working hours to 1,800 per annum by 2009. To attain its target, the Government is attempting to make Japanese businesses adhere to the 40-hour workweek, is encouraging workers to use their vacation days, and is trying to reduce the number of overtime hours.

The MHLW administers the Industrial Safety and Health Law, as well as other laws and regulations governing occupational safety and health. Standards are set by the MHLW and issued after consultation with the Standing Committee on Safety and Health of the Central Labor Standards Council. Japan has a total of 343 Labor Standards Inspection Offices, whose staff carry out safety inspections and accident investigations and provide judicial punishment for serious violations of the law.

Japan has approximately 570,000 cases of occupational accidents and diseases on an annual basis. In 1999, there were 137,316 serious, work-related injuries or incidents of illness, in which employees lost four days or more of work. Of these, 28.3 percent occurred in manufacturing and 25.7 percent in construction. The number of fatal accidents totaled 1,992, with 794 deaths in the construction industry and 344 in manufacturing.

KEY SOURCES

Ministry of Health, Labor, and Welfare.

Japanese Working Life Profile: 2001-Labour Statistics (Tokyo: The Japan Institute of Labour, 2001).

Statistical Handbook of Japan 2001 (Tokyo: Ministry of Public Management, Home Affairs, Posts, & Telecommunications, Statistics Bureau, 2001) (http://www.stat.go.jp/english/data/handbook/index.htm).

The Labor Situation in Japan 2001 (Tokyo: The Japan Institute of Labour, 2001).

"Japan Information Network: Japan Directory: Industry/Economy: Labor Unions" (http://jin.jcic.or.jp/index.html).

2002 National Trade Estimate Report on Foreign Trade Barriers (Washington, DC: Office of the United States Trade Representative, 2002) (http://www.ustr.gov/reports/nte/2002/japan.PDF).

ORDERING INFORMATION

You may order an annual subscription to the Foreign Labor Trends Report Series or a printed copy of the Foreign Labor Trends report for a specific country from the U.S. Government Online Bookstore at http://bookstore.gpo.gov/index.html.