The National Confederation of Trade Unions (Zenroren), Japan's class-oriented national trade union center, on January 22 released a comment on the Japan Business Federation (Keidanren)'s annual "Report on Management and Labor Policy" as follows:

Statement; On Kaidanren's '2025 Management and Labor Policy'

Kurosawa Koichi
Secretary General
the National Confederation of Trade Unions
Zenroren
January 22, 2025

The Japan Business Federation (Keidanren) on January 21 published The 2025 Report on Management and Labor Policy, the business sector's guidelines for the annual labor talks, known as "Shunto"(Spring Struggle).

The report calls for "the strong wage hike momentum to be stabilized so that the virtuous cycle of economic growth and wages can prevail throughout the country and for the matter to be considered with base pay increases in mind.

But the report also says wage increase should be determined in line with the overriding principle for deciding on wages and treatment of workers (i.e.,(1) various factors that need to be considered inside and outside of the company, (2) reasonable total labor costs, (3) the company's ability to pay, and (4) deciding wages at management-labor talks at each company) saying that smaller unions' demand for a pay raise of more than18,000 yen or 6% (per month) is very high even when the benchmark or the labor movement is taken into consideration.

The report argues that the need is to carry out structural wage increase at small- and medium-sized companies that employ 70 percent of the workforce. But it also presses smaller businesses to make efforts to reform and improve productivity while insisting that it is necessary for the large corporations to secure profitability that can respond to smaller businesses' price-pass through. This is nothing less than self-contradictory selfishness.

The business sector is thus turning its back on the actual conditions of the workers who are struggling to make ends meet amid soaring prices. Such an attitude does not help raise the "worker engagement."

In addition, the report talks about studying raising wages through a variety of methods. While it says that it will be effective to give larger distribution to younger employees in monthly raises and starting pay raises, it mentions nothing about wage increase for middle-aged and older employees. What's more, it even calls for reviewing/reforming the whole wage system, including the retirement pay, as part of the establishment of an employment system that combines the job-based employment and the membership-based employment.

The 2024 Spring Struggle won the biggest wage increase in 30 years but did not benefit the middle-aged and older workers. There is concern that this situation will further exacerbate.

Regarding the minimum wage, the report as usual says the decision of a benchmark for minimum wage increase should be based on each business establishment's ability to pay. Arguing that it is necessary to ensure a plenty of period of time for preparing minimum wage increase, it only says that January or April could be viable options for starting the revised minimum wage, suggesting it is very passive about minimum wage increase.

The report stresses the necessity of improving productivity by accelerating investment in workers aiming to achieve structural wage increase and build a thick middle class. It also says companies should maintain the philosophy of seeking profits for social contribution in ways that avoid committing illegal acts.

It specifically calls for such measures as "reviewing the work-time legislation," using the employment system that combines the job-based employment and the membership-based employment, and promoting smooth labor mobility. These are nothing but what the corporations want as they promote systems that enable them to use workers with abilities they need at the lowest possible cost and to even throw away without violating the law. How selfish they are!

The report requests the government to make it possible to treat workers without work-hours as the basis, arguing that it is necessary to create a system that can decide on discretionary work schedules through labor-management talks. This is in line with a report issued by a labor ministry panel studying on the labor standards law. The panel came up with recommendations for reforming the working hour regulation to make it possible to adjust or derogate the regulation through labor-management communications. That's absolutely unacceptable.

Regarding the employment system that combines the job-based employment and the membership-based employment, the report says possible options would be: (1) membership-based employment, (2) a hybrid of membership-based employment and job-based employment, and (3) complete transition to a job-based employment. However, the job-based employment is a system that allows companies to hire in a timely manner people who have knowledge, ability, experience and expertise they need and who will be hired under a program under which the workers will be treated and paid according to their job performance, role and contribution. This means that it will be difficult for such workers to keep their positions if their jobs or posts are abolished or reduced and that if their work or contribution is rated low, they would be paid less. Encouraging companies to introduce the job-based employment system to contribute to smooth labor mobility is tantamount to encouraging companies to throw away workers into the outside labor market if they are not counted as useful for the company.

The report argues that "smooth labor mobility" is necessary because smooth labor mobility to fast growing sectors or businesses is indispensable for small- and medium-sized businesses which are the key players of regional economies. But it also argues that career should be considered as something workers can realize through acquiring necessary skills instead of something that is given by the company and is excessively encouraging workers to take labor mobility as their choice, by using an open job posting system, or a free agent system, and encouraging workers to have a second job or side job. We cannot overlook the report's call for hurrying to create a system to allow dismissals through monetary settlement if they are found invalid as a measure of worker protection. It is also unacceptable that the report is trying to pave the way for giving the employer a freehand to fire workers saying that Article 16 of the Labor Contract Act (dismissals without reasonable grounds) needs to be clearly defined in accordance with conditions of employment and the company's peculiarities.

Considering these problems, the report's arguments on the pretext of "job satisfaction" and "workers' diversified needs for jobs" must be taken as questionable at a time in light of the importance of realizing descent work.

At a time when skyrocketing prices are increasingly serious, a substantial wage increase is what all workers cannot wait any longer.

Zenroren in this year's Spring Struggle will continue to strive to raise the level of union struggle, including going on strike, for demands rising in the workplaces: a substantial wage increase, the realization of a uniform national minimum wage system, shorter working hours, the necessary staffing.

In addition, we demand the Labor Standards Act be improved instead of being dismantled, with a view to realizing a society in which workers' safety and health are valued. We will do all we can to eliminate all forms of harassment from the workplaces. We will work to create workplaces and local communities in which everyone can enjoy a decent life and work with satisfaction. To this end, we demand that the large corporations fulfill their social responsibility, including using part of internal reserves for payment to workers and small-and-medium businesses.