Chapter 5 Labor Unions in Japan
I. Labor Unions
In Japan, labor unions are enterprise-based, organized on a vertical basis. This is a characteristic feature of Japanese labor unions, which are not occupation or craft-based like labor unions in the USA or Europe. This means that all employees working in a company, either blue-collar or white-collar, belong to a union without consideration their occupation or profession. The relationship with unions relates the entity of Japanese cooperation and the system of life-time employment. Japanese enterprise-based labor unions have contributed to the country´s economic growth.
Like other industrial countries, Japan is also facing a decline in the unionization rate. According to the Ministry of Health, Labor and Welfare, total labor union membership was 11,539,000 as of June 2000 (286,000 fewer than the previous year) and the sixth consecutive yearly decline. The estimated unionization rate stands at 21,5%, continuing the downward trend which began in 1982.
The advantages of having enterprise-based unions are that they can look after individual members more closely and can present the union´s opinions directly to management. Disadvantages to this system are that the labor unions´ activities are confined to within their companies and they have little social impact. To compensate for these shortcomings, industry-based labor unions were organized. They go beyond activities at the individual enterprise level, establishing policies for their industries and sending representantives to the Diet and local assemblies.
The national centers, grouping industry-based labor unions, are another tier in the system. The three major national centers are Rengo, the Nippon Rodo Kumiai Sorengokai (Japanese Trade Union Confederation), Zenkoku Rodo Kumiai Sorengokai (National Confederation of Trade Unions, Zenroren) and Zenkoku Rodo Kumiai Renraku Kyogikai (National Trade Union Council, Zenrokyo). Their role is to represent basic policies for labor union activities and carry out those activities throughout the country.
II. Current strength of labor unions
According to the Ministry of Health, Labor and Welfare´s Basic Survey on Trade Unions, there were 31,185 labor unions as of June, 2000. The estimated unionization rate is dropping in Japan and also in other countries, mainly because of changes in the industrial structure toward a more service-oriented economy.
By industry, manufacturing accounts for the largest number of unionized workers, 3,403,000. The estimated unionization rate is a comparatively high 28%, but the number of employees in this sector dropped by 1,060,000 compared to the 1995 survey. The service sector has the third-largest number of labor union members-1,878,000, but the unionization rate is a low 12%. In this sector, the number of employees increased by 1,730, 000 compared to 1995. The drop in the unionization rate is due to the decline in the number of workers in manufacturing, which has relatively high unionization rate, and the rise in the number of people working in services, where the rate of labor union membership is low.
Another reason for the lower unionization rate is the change in the employment structure and the growth in the number of part-time workers, a year on year increase of 2.4%. Only 2.6% of part-time workers belong to labor unions, fewer compared to regular employees.
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