JCP in Diet demands government control major companies' dismissals

About 550,000 workers of 197 companies will lose jobs if the present plan announced so far by major companies are implemented.

Pointing this out at the House of Representatives Budget Committee meeting on February 14, Haruna Naoaki of the Japanese Communist Party emphasized the urgent need to establish strict regulations of dismissals.

Haruna said that of 550,000 workers, 246,709 will be out of jobs by the end of this March and 299,243 more will lose jobs after April.

He said that corporate restructuring has so far been carried out mainly in the manufacturing industry; but that in the future IT and service industries will also start a mass restructuring although the government has stated that these industries look promising.

Haruna questioned whether Japan's economy will recover when such massive restructuring is going on.

In reply to this, Minister of Economy, Trade and Industry Hiranuma Takeo admitted that personnel cuts are causing reduced consumption and deflation. He said that major companies should accept their responsibilities to society and help those who have lost jobs to find another one.

Minister of Health, Labour and Welfare Sakaguchi Chikara avoided talking about the establishment of rules to control restructuring.

Concerning Nippon Telegraph and Telephone Corporation (NTT)'s 110,000 job cut plan, Haruna said that the NTT Group actually has a retirement system starting at age 50 and is forcing all workers 50 and over to quit and be reemployed by affiliate companies at a 30 percent reduction in wages. And it is pushing ahead with this system of the president's instruction, not due to a company regulation.

Haruna demanded that the government take some steps to stop NTT's action, but Sakaguchi only said that violation of the law should be strictly dealt with. (end)