Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

The Committee notes the information provided by the Government in the report received in November 2009 and the attached comments from the Japanese Trade Union Confederation (JTUC–RENGO).

Article 3 of the Convention. Participation of the social partners in the formulation of policies. In reply to the 2008 observation, the Government indicated that consultations covered by the Convention are implemented in the Labour Policy Council. The Committee notes that the Council on Economic and Fiscal Policy formulates the basic policies for economic and fiscal management and structural reform, which determines the fundamental orientation of policy measures, including employment measures. In this regard, JTUC–RENGO expressed its concern about the Government giving serious attention to recommendations made within the Council on Economic and Fiscal Policy, the Council for Regulatory Reform and other forums that do not include worker representation. JTUC–RENGO considers that discussions at the Labour Policy Council tend to be conducted within the framework set by these councils. The Committee notes JTUC–RENGO’s call to respect the Labour Policy Council as one of the pillars of the decision-making process for employment and labour policies. The Committee invites the Government to provide information in its next report on how discussions resulting from the Labour Policy Council, as well as other councils, have been used in the formulation and implementation of the employment policy. In this regard, the Committee asks the Government to focus on the consultative procedures which enable to take fully into account the views and experiences of persons affected by employment policy measures.

Articles 1 and 2. Measures taken in response to the global crisis. The Committee notes that the total unemployment rate increased from 3.8 per cent in October 2008 to 5.7 per cent in July 2009 due to the economic deterioration, equivalent to about 1.3 million more individuals unemployed. Among the measures implemented to improve the employment situation, the Government has created funds in prefectures to create short- and medium-term employment and to provide workers not eligible to receive unemployment insurance with income to secure living costs. The Government has also extended grants to firms to compensate decreased business and to support employment without dismissing workers. In April 2008 the “Job-Card System” was set up in order to provide training opportunities for workers with limited opportunities to find employment. The Committee also notes the increase of staff levels at the public employment services as a consequence to the rise in jobseekers that required services. According to JTUC–RENGO, with the rising unemployment among non-regular workers following the economic turndown, the Government has been working with the social partners to adopt the Tripartite Agreement toward Employment Stabilization and Job Creation. JTUC–RENGO also considers that job creation and employment mismatches continue to pose a challenge. The Committee invites the Government to provide information in its next report on how the policies designed and the programmes implemented will translate into productive and lasting employment opportunities for the unemployed and other categories of vulnerable workers affected by the crisis such as non-regular workers.

Implementation of an active employment policy. In reply to previous comments, the Government indicates in its report that Japan is progressing with structural adjustments to resolve the surpluses in employment, facilities and debts in order to rebuild a healthy economic environment. The Committee notes that revitalization grants have been established to facilitate small and medium-sized enterprises contributing to regional employment creation and expand employment in regions where unemployment is higher. The Committee also notes from the documentation available in the ILO that a New Growth Strategy (Basic Policies) was approved by the Cabinet in December 2009, focusing on generating demand and jobs by implementing measures to improve people’s livelihoods. The Government aims to create new demand and jobs in fields such as the environment, health and tourism, with the target of generating millions of jobs and ¥100 trillion in demand in these three sectors by 2020. Under the new strategy, the Government set a target for GDP growth of more than 2 per cent a year for the coming decade. Following a contraction of 1.2 per cent in 2008 and 5 per cent in 2009, real GDP growth is projected by the Bank of Japan to be about 2.1 per cent in the fiscal year 2010. The Government also seeks to reduce the unemployment rate from 5 per cent to about 3 per cent in the medium term. The Committee invites the Government to state in its next report whether special difficulties have been encountered in attaining the objectives of the Convention and how far these difficulties have been overcome.

Employment of women. In reply to the previous observation, the Government indicates that female participation in the labour market has increased for six consecutive years, with 23,120,000 female workers as of 2008. The Government informs that approximately 70 per cent of female workers leave their jobs when their first child is born, and a large number of women leave their jobs due to childcare and that the percentage of women in managerial posts continues to be low. The Committee notes the efforts to encourage employment of women workers with the Positive Action Support Site by disseminating information to companies of examples of good practices implemented by different firms and therefore raising public awareness. The Equal Employment Opportunity Law was revised in 2007 to further develop and strengthen the provisions including invalidating dismissals due to pregnancy and childbirth. The Committee notes that the Draft Act for Partial Amendment to the Child Care and Family Care Leave Act, which includes provisions for obliging business operators to establish a reduced work hour system for workers raising children under three years old and promotional measures for male workers to take childcare leave, was approved in June 2009. The Government also reports to be increasing efforts to improve day‑care services. The Committee invites the Government to report on the impact of the new legislation and on how these measures have created further productive employment opportunities for women.

Regarding the career-tracking system, the Government recalls that the Equal Employment Opportunity Law prohibits employers to classify workers into certain careers according to sex. In order to ensure opportunities for women to have access to the “main career track” more effectively, the revised Equal Employment Opportunity Law prohibits employers from applying, without legitimate reason, a criterion concerning the worker’s availability for reassignment that results in the relocation of the worker’s residence on the grounds that applying such a criterion is considered as indirect discrimination. The Committee invites the Government to provide further information on the measures taken to ensure that in practice companies are not using the two-track system for recruiting graduates, where men are assigned to managerial tracks and women to clerical tracks where upward mobility is very limited, and thus to ensure that each worker shall have the fullest possible opportunity to qualify for and use his or her skills, in accordance with Article 1(2)(c) of the Convention.

Youth employment. The Government states in its report that the employment situation of the second semester of 2008 resulted in problems such as enterprises cancelling informal job offers made in March 2009 to new graduates. Measures have been adopted to prevent such cancellations through the amendment of the Ordinance for Enforcement of the Employment Security Act. The Government introduced measures to assist young people in temporary or part‑time jobs, known as freeters. In April 2008, the Freeters Regular Employment Promotion Plan was promoted to support stable employment and has resulted in the regular employment of 268,000 freeters. Programmes have also been implemented relating to the one-stop service centre for young workers and the promotion of vocational training and career development in collaboration with universities and technical colleges. The Government states that the situation has been improving as the number of freeters has decreased over five consecutive years, with the number of freeters 1,700,000 in 2008. According to the OECD, the unemployment rate for 15–24 year olds rose by 2.4 percentage points, reaching 9.9 per cent in July 2009. In its 2010 General Survey concerning employment instruments, the Committee noted that in Japan one third of young workers are in non-regular employment. The Committee observed that there was a growing problem of unemployment among educated workers, particularly young university graduates, who are unable to find secure employment commensurate with their skill level. This is an issue for the advanced market economies as well as developing countries. Not only are their skills underutilized, but this pattern of casual jobs can prove detrimental to their lifetime career progression (see paragraphs 576 and 800 of the 2010 General Survey). The Committee encourages the Government to report on how it is enhancing vocational training and career development for young workers, as well as on the impact of the measures taken to support re-employment of young workers.

Older workers. The Government reports that as of June 2008, 96.2 per cent of enterprises with 51 or more workers have implemented employment security measures for older people. Thirty-nine per cent of them have allowed workers to remain working until age 65 or more if they wish, while 12.4 per cent have implemented employment security measures for people up to age 70. The Government also states that strong guidance will continue to be provided to enterprises that have not implemented employment security measures for older people. The Committee invites again the Government to provide detailed information on the measures implemented as part of an active policy intended to address the employment situation caused by an ageing workforce and a slowing rate of population growth.

The Japan Postal Industry Workers’ Union (YUSANRO) supplied observations on the Convention in October 2010. The Committee invites the Government to provide its own remarks on the matters raised therein for its forthcoming session.