Production abroad by large corporations doubles in ten years, hollowing out Japan's industry and jobs

Akahata Sunday edition of February 3 ran a story titled "Japan, a hollowed-out archipelago."

The shifting of the production base abroad by large corporations, which began in the latter half of the 1980s, was rekindled in the late 1990s under the pressure of a severe competition for market on a global scale.

Employees working at corporations abroad almost tripled, from 1.16 million in 1989 to 3.16 million in 1999.

A government estimate says that the percentage of production abroad in Japan's manufacturing industry more than doubled from 6.4 percent in FY 1990 to 14.5 percent in FY 2000. The statistics give the name "second hollowing out period" to the past decade.

Large corporations show an irresponsible attitude toward the adverse effect on domestic employment. Toshiba's president said, "It is natural for corporations to cut jobs at home, if they shift their production base abroad to increase their competitiveness by cutting costs.

A government panel, the Council on Industrial Structure new growth policy subgroup published a final report estimating that 2.5 million jobs will be lost in manufacturing industry by 2010 unless something is done to check the trend of industrial hollowing out.

If domestic industry is left to decline, the economic recession will deepen and the national economy will fall into further decay.

Government helps corporations hunt for more profits

Finance Minister Shiokawa Masajuro of the Koizumi Cabinet accepts the hollowing out as a necessary consequence of globalization. The government is playing the role of a cheerleader group to large corporations by proposing tax breaks for large corporations in the name of strengthening international competitiveness and deregulation in employment.

Corporate activities aim at earning profits. But this doesn't mean that they are free to do anything. Their activities entail social responsibility to regional economies, concerning employment and other aspects.

During the 1960s and into the 1970s, business operations of large corporations caused environmental disasters, and many hoarded their products to take advantage of the oil shock. Public opinion rose to call on large corporations to fulfill their social responsibility, which led to public regulations against environmental and other hazards.

Today we see public opinion developing to encourage the struggle against Nissan Motors closing its Murayama Plant.

In Europe corporations take social responsibility

By contrast, West European countries have rules and regulations by which large corporations have to assume social responsibilities, not just defending jobs. This is the result of the people's struggles.

In Denmark, the social affairs ministry grades, on a hundred-point scale, the degrees of fulfillment of social responsibility, including job creation, by corporations.

Britain has a cabinet minister in charge of corporate social responsibility whose task is to encourage exemplary activities and make them prevail.

Last year, the European committee of the European Union (EU) proposed to grasp a corporation's social responsibility in a wider scope by taking into consideration workers, dealers, the environment and local residents.

What is now going on in Japan, in which large corporations victimize workers, small- and medium-sized businesses and subcontractors, and regional economies to increase their competitiveness and secure their profits is extraordinary by international comparison.

If the practice of unpaid overwork is eliminated, 900,000 jobs will be created. Regulation on arbitrary ending of orders to subcontractors by large corporations will help small- and medium-sized businesses to maintain their business.

If corporations are to close plants and shops, it is necessary to make if obligatory for them to submit plans to the government and local municipalities concerned. The government and municipalities should assess the possible impact of the closure and make the corporation assume their social responsibility to defend jobs and local economy by taking necessary steps. (end)