WHEN MAZDA DECIDED to locate its first U.S. auto
plant in the town of Flat Rock, Michigan, it had to fight criticism from
other Japanese auto producers that locating in UAW territory would produce
future labor problems. The bulk of the Japanese plants, in places like
Tennessee and Kentucky, are far from UAW strongholds.
But the UAW has been
more than supportive of both the Mazda plant and the labor changes that
Mazda has pioneered in Flat Rock, says the company. "We found the UAW leadership
quite enlightened about the need to change the confrontational atmosphere
that had characterized their relationship with the other auto companies,"
Osaum Nobuto, president of the U.S. Mazda Motor Manufacturing Corporation,
wrote in the Keidanren Review earlier this year. "The cooperative relationship
we have established with the UAW has gained particular notice in Detroit."
Although Japanese companies are anxious to see their unique management
style implemented in overseas operations, workers have only to look at
their Japanese counterparts to see the folly of blindly accepting the Japanese
model.
In Japan, the much vaunted Japanese labor-management cooperative
spirit has meant significant sacrifices that Japanese workers have had
to accept vis-a-vis their western counterparts. Japanese workers have failed
to achieve labor rights that are standard fare throughout the developed
world. The eight hour day is not the rule for most workers in Japan. Sick
leave has yet to be written into law. Only a few industries, most notably
banking and finance corporations, are talking of making the five-day work
week a reality before 1990. The work week was only recently decreased from
48 to 46 hours, but many businesses were given exemptions.
According to the Ministry of Labor, in 1986 Japanese workers worked 2,150 hours, while
U.S. workers worked only 1,924 hours. Nearly 14 percent of all Japanese
workers needed an hour or more to commute to and from work, compared to
only 6 percent in the United States. Social security for Japan's elderly
comes through saving and working. In fact, the Japanese worker--despite
tremendous gains in the Japanese economy in the last several years--has
seen few benefits. The living standard for Japanese workers is much lower
than the living standard for U.S. workers even though per capita income
is almost equal.
Working Hours
Working hours are perhaps the most controversial
issue in Japan. In April, the government introduced an amendment to the
Labor Standards Law proposing a 40 hour work week, but the bill "would
allow employers to retain the present "48-hour week" or even a 54-hour
week for three more years "in accordance with the scale and category of
their business," according to the Concerned Labor of Japan Committee. No
exact timetable was written into the proposed law for conversion to the
40-hour work week. And the bill gave employers tremendous flexibility in
deciding when employees had to work these hours and days. The bill that
was finally passed by the Diet set a 46-hour work week goal but allows
employers to keep operating under the present 48-hour work week for another
three years. It did, however, put caps on how flexible employers could
be if they chose to operate under the flex-time provision: "working hours
should not be extended more than 10 hours a day or 52 hours a week and
one day-off should be given every week." While intervals "between days-off
should not be longer than 12 days." By allowing employers to require workers
to work longer during busy times and then cutting them back during slack
times, the government hopes to cut the number of overtime hours clocked
and make shorter hours less arduous for employers.
Another clause added to the Labor Standards Law required that a "reduction of wages or other
disadvantages should not be given to those who take annual paid leave in
full." According to the Ministry of Labor only a little over half of all
paid vacations are actually taken. Under the new law, the minimum number
of paid leave days was increased from 6 to 10, but an employee can only
take five days of paid leave at a time he or she picks; other paid leave
must be approved by the employer. Although the changes in the law were
an attempt to deal with both domestic and international concerns that Japan's
workers are overworked, it offers little real improvement in working conditions.
The new law "meets none of the international labor standards concerning
working hours stipulated by the International Labor Organization (ILO)
and spreads unfair working conditions among peoples," notes the Concerned
Labor of Japan Committee.
Japanese Unions
Much of the problem with the
Japanese labor movement stems from the way Japanese labor unions were established
in post World War II Japan. Japanese labor unions, unlike those in the
United States and Europe, are company specific, not industry wide. What
this usually means, says Hiroshi Wakabayashi, director of the International
Labor Movement Institute in Tokyo, is that the union works with the company
to improve profitability. And if that means lower wages and longer working
hours, the union often willingly complies. "The labor union of Japan is
not the union of workers but the union of employers," says Wakabayashi.
Ten years ago, he says, the unions were more genuinely on the side of the
workers. The change in union outlook is reflected in union membership--27.6
percent of workers were unionized in 1987 compared to 34.4 percent in 1975.
"Workers belonging to the enterprise feel they are a component to management,"
says Ryu Kazama professor of economics at Kantogakuin University in Yokohama
City. The Japanese economy, he says, is dependent on these loyal workers
and their willingness to accept lower living standards. At the annual spring
offensive, the Japanese labor movement's bargaining campaign, unions settled
for a 4.4 percent increase in wages for the year. A fairly dismal showing,
especially since it followed a 1987 increase of only 3.5 percent--the lowest
increase in three decades.
Rengo, the largest trade union organization,
even began calling the traditional "spring struggle" the "spring discussion"
to better reflect the movement's new-found identity. The two-year old Rengo
was lauded by The Japan Times for its willingness to recognize political
realities. "Free from the yoke of leftist ideology and a strongly political
orientation, Rengo has declared itself to be a national labor organization
basically in the same boat as management."
The union did demand wage increases
in the spring offensive but the demands of 6 to 7 percent were far from
what was needed to give Japanese workers parity with workers in the West
according to Toitsu Rosokon, a new, radical labor organization. Toitsu
Roso-kon is highly critical of Rengo and its plans to reshape the Japanese
labor movement.
In 1990 Sohyo, the General Council of Trade Unions of Japan,
will disband and join with Rengo. Sohyo, with over 4 million members mostly
in the public sector, will make Rengo a tremendously powerful force. So
far, however, maintenance of the status quo seems to be Rengo's driving
force. Akira Haruyama, secretary general of Toitu Roso-kon, says his 1.8
million strong organization is calling on workers throughout Japan to "oppose
the right wing reorganization of the labor movement." Rengo, which already
has over 5 million of the 12 million unionized workers under its umbrella,
was founded after two other national labor organizations--Domei and Churitsu
Roren-- were dissolved. Haruyama says Rengo follows the Domei line: antiworker.
"[Rengol is turning [its] back on the working people," he says.
As the Japanese economy has catapulted, Rengo and its predecessors have cautioned
workers that competition is severe and that they must wait for increases
in wages and benefits, he says. "The wage levels of Japanese workers are
ranked 20th," he says. "If we compare purchasing power, the Japanese purchasing
power is only 54 percent of U.S. workers." Haruyama says the growing disparity
in the growth in the wages of Japanese workers and the growth in the Japanese
economy is beginning to force workers to question company motives.
Harriet Oaks is a freelance writer based in Boston.
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