Japan`s Labor and Management Introduces `Work Sharing`

Japan`s management organizations and union association agreed to introduce the `work sharing` system to maintain employment by reducing the work hours and wages of the employees.

The Federation of Japanese Industries and Japan`s Employers Association will merge together in May to launch the Japanese Economic Organization Association and the Association recently released its basic plan for the activity after launch including the item "effort to maintain employment through work sharing."

The basic plan will be officially announced by the first president of the new organization in its foundation ceremony.

JEOA will prepare the detail measures after collecting the opinions from employer organizations, government, and unions by March.

Meanwhile, the Electric Power Association decided to introduce three models of work sharing such as extending the temporary leave to one month or even 1-2 years if necessary, changing 3 shifts to 4 shifts a day, and reducing the work hours a day to reduce the wages.

The EPA will offer the proposal to the union by the 24th and the establishment of `Management and Labor Joint Committee for Secure Employment` to the management side, and is planning to reach an agreement through the organizational negotiation this year.

Regard to the work sharing, both management and labor sides were reluctant to introduce it for different reasons. The management side worried that the system would decrease productivity without significantly helping the reduction of expenditures. On the contrary, the labor side viewed the system negatively, afraid of the reduction of real wages

Young-Ee Lee yes202@donga.com